British Businesses Bank, the UK government’s economic development bank, has invested £50 million in a fund designed to provide B2B AI and SaaS startups with seed capital.
SuperSeed Fund III, launched by London-based venture capital firm SuperSeed, will focus on the application of AI to physical industries such as manufacturing, energy, construction and autonomous systems.
SuperSeed said the companies in the fund build the software platforms, algorithms, and control systems that make industrial infrastructure intelligent, as well as the integrated hardware to deliver complete solutions.
The new fund will back companies across the full stack.
British Business Bank has made the investment through the Enterprise Capital Funds programme, which aims to increase the supply of equity capital to early-stage UK companies with long-term growth potential and lower barriers to entry for fund managers looking to operate in the venture capital market.
The programme has backed 52 funds so far which represents more than £2.7 billion of finance.
SuperSeed Fund III is accredited by the UK’s National Security Strategic Investment Fund (NSSIF).
British Business Bank claims it is the largest investor in UK venture and venture growth capital funds, adding that its investments help companies plan their strategy more effectively and often to a greater scale.
“SuperSeed has a strong track record of identifying innovators and a deep understanding of how AI can be applied to sectors of national strategic importance, including those of the modern industrial strategy,” said Christine Hockley, managing director and co-head of funds at British Business Bank. “This cornerstone commitment will crowd in additional private capital, backing innovative companies developing applied physical AI systems that drive and optimise efficiencies in critical business infrastructure.”
