The British Business Bank has committed up to £50m to Elbow Beach’s Climate Impact Fund 2 through its enterprise capital funds programme.
The fund has already secured £63m in capital and plans to support up to 36 early-stage UK startups over the next four years.
With £40m ready to be deployed, it will focus on technologies improving efficiency and reducing carbon emissions, such as automation, artifical intelligence (AI), and low-carbon materials.
It will target climate tech firms, especially university spinouts and those with Innovate UK grants.
Christine Hockley, managing director and co-head of funds at the British Business Bank, said: “We are pleased to make this commitment to Elbow Beach as they back startups pioneering technology solutions to global climate challenges.
“Our enterprise capital funds programme is key in helping to develop and maintain effective venture capital provision in the UK, lowering the barriers to entry for emerging fund managers.
“Our commitment to Elbow Beach builds on the programme’s track record and will help early-stage founders in the climate impact sector across the UK to build their businesses.”
Mark Sims, senior director of funds at the British Business Bank, said: “Hardware climate tech companies at pre-revenue level experience an equity gap in the UK due to the lack of venture capital investors with the right expertise to evaluate them.
“Furthermore, continued innovation is required to tackle the significant challenges of climate change.
“By committing to Elbow Beach’s Climate Impact Fund, we are filling this equity gap whilst backing high growth climate tech companies that are developing the technologies required to help the UK achieve Net Zero.”
Jon Pollock, CEO and managing partner at Elbow Beach, said: “Elbow Beach is on a mission to ensure Britain remains a global leader in climate technology innovation, and we’re going to help support the next generation of founders who are driving real transformational change.
“The UK has a huge advantage in the development of new technologies that help to deliver better outcomes for customers through cheaper, more secure or higher performance solutions which are also decarbonising.”
Pollock added: “We’re really looking forward to working with the British Business Bank’s team to deploy this fund and partner with brilliant entrepreneurs providing customers with better, more cost-effective solutions at scale.
“The backing from the British Business Bank is a real vote of confidence in Elbow Beach’s investment strategy and in Britain’s entrepreneurs.”
