British Business Bank Backs Climate Impact Fund with £50m Commitment
Funding | Mar 21, 2025 | British Business Bank Investments Ltd
The British Business Bank has announced a cornerstone commitment of up to £50 million to Elbow Beach's Climate Impact Fund 2 under its Enterprise Capital Funds programme. This fund, which already has commitments for £63 million, plans to support 36 UK startups over the next four years with its £40 million of readily deployable capital. Its focus is on early-stage companies that are developing technology solutions enhancing efficiency while supporting low carbon transitions. The fund will explore areas such as automation, AI, carbon capture, electrification, and low-carbon materials, mainly targeting climate tech firms, including university spinouts and those with Innovate UK grants. The British Business Bank is a significant player in the UK venture capital landscape, supporting numerous funds and lowering entry barriers for fund managers. Christine Hockley, Managing Director at British Business Bank, highlighted the importance of this commitment in fostering innovative climate technology solutions.
Sectors
- Climate Technology
- Venture Capital
Geography
- United Kingdom – The article focuses on investments aimed at UK-based startups and the role of a British firm, the British Business Bank.
Industry
- Climate Technology – The article discusses investment in startups developing technologies to address climate impact and efficiency.
- Venture Capital – Involves the British Business Bank's strategy to fund early-stage companies through venture capital investment.
Financials
- £50 million – Cornerstone commitment by British Business Bank to Elbow Beach's Climate Impact Fund 2.
- £63 million – Total capital commitments already secured by Elbow Beach's Climate Impact Fund 2.
- £40 million – Amount of capital immediately available for investment by Elbow Beach's fund.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| British Business Bank Investments Ltd. | Investor | Company | The largest domestic investor of UK venture capital, participating in the deal to fund early-stage startups. |
| Elbow Beach Capital | Fund Manager | Company | Manages the Climate Impact Fund 2, which is the recipient of the British Business Bank's investment. |
| Christine Hockley | Commentator | Person | Managing Director and Co-Head of Funds at British Business Bank, providing remarks on the investment. |