Observed Signal · Apr 28, 2025 · Funding · Source: Tech.eu · Impact: 2/5 · Sentiment: Positive
Volution Launches $100M Fund to Bridge UK Tech Scale-Up Gap
UK-based venture capital firm Volution announced the launch of its second fund, a $100M vehicle aimed at addressing structural funding gaps for high-growth tech companies in the UK. The fund is backed by a co-GP partnership with Japan's SBI Investment Co. and targets fintech, AI, and SaaS businesses with at least £5m ARR. The initiative comes amid a 44% drop in UK Series A funding in 2024 and a halved Series A to B conversion rate over five years. Initial investments have been made into one fintech and one AI company. Volution's Managing Partner James Codling highlighted the need for scale-up capital to prevent companies from stalling or being sold prematurely.
Addresses late-stage funding gap in UK tech, but not directly tied to AdTech platform changes or major regulatory shifts.
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Key Takeaways & Evidence Grounding
- Volution launched a $100M second fund for UK scale-ups.
- The fund is a co-GP partnership with Japan's SBI Investment Co.
- The fund targets fintech, AI, and SaaS companies with at least £5m ARR.
- UK Series A funding dropped 44% in 2024 year-over-year.
- The conversion rate from Series A to B has halved over the past five years.
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