Climate impact fund gets £50 million lift

A climate-focused investment fund has secured a major commitment to support early-stage start-ups developing sustainable technologies.

The British Business Bank has committed up to £50 million to Elbow Beach’s Climate Impact Fund 2 through its Enterprise Capital Funds programme. 

The fund, which has already secured commitments for £63 million of capital, will back start-ups from across the UK to accelerate climate tech innovation and “drive transformational change”. 

With £40 million of immediately deployable capital, bosses say the fund will invest in up to 36 UK start-ups over four years, focusing on automation, artificial intelligence, carbon capture, electrification and low-carbon materials.

They add the fund will primarily seek to back climate tech companies, including university spin-outs and companies that have received Innovate UK grant funding.

Jon Pollock, Elbow Beach chief executive and managing partner, 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. 

“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.”

The British Business Bank is the UK’s largest domestic venture capital investor, with its Enterprise Capital Funds programme supporting 47 funds and more than £2.3 billion in finance.

Christine Hockley, managing director and co-head of funds at British Business Bank, added: “We are pleased to make this commitment to Elbow Beach as they back start-ups 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.”

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