Elbow Beach Secures £63m for Climate Impact Fund
Funding | Mar 21, 2025 | Business Cloud
Elbow Beach, a specialized seed investor focused on climate impact, has achieved the first close of its second fund, securing £63 million out of a targeted £80 million. This includes a commitment of up to £50 million from the British Business Bank via its Enterprise Capital Funds programme. Primarily based in London, Elbow Beach plans to invest in up to 36 early-stage British tech startups over the next four years. The focus is on technologies that address significant issues and assist industries in becoming more efficient and transitioning to low-carbon operations. Their investment strategy targets automation, AI, carbon capture, electrification, and low-carbon materials. CEO Jon Pollock highlights the fund's mission to align innovative technologies with substantial customer challenges. Elbow Beach has been facilitating growth for early-stage tech firms from pre-seed to Series A since 2021, with successful investments in companies like Munro Vehicles and Anaphite. Christine Hockley of the British Business Bank underscores the importance of this commitment in supporting emerging fund managers and pioneering climate solutions.
Sectors
- Venture Capital
- Climate Technology
- Environmental Impact
Geography
- United Kingdom – Elbow Beach is based in London and the investment is targeted at early-stage British startups.
Industry
- Venture Capital – The article discusses the activities and funding of a venture capital firm, Elbow Beach, focusing on early-stage investments.
- Climate Technology – The focus is on investing in technologies that help solve climate issues, including sectors like carbon capture and low-carbon materials.
- Environmental Impact – The investments aim to make a significant impact by enhancing efficiency and assisting industries in transitioning to low-carbon operations.
Financials
- £63 million – Funding secured for Elbow Beach's Climate Impact Fund 2.
- Up to £50 million – Commitment from the British Business Bank through the Enterprise Capital Funds programme.
- £80 million – Targeted total for the Climate Impact Fund 2.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Elbow Beach | Investor | Company | A specialist seed investor focused on climate impact investments. |
| British Business Bank | Investor | Government | A UK government-owned development bank supporting economic growth by improving access to finance for small businesses. |
| Munro Vehicles | Investment Beneficiary | Company | One of the companies backed by Elbow Beach's first fund. |
| Anaphite | Investment Beneficiary | Company | Another beneficiary of Elbow Beach's initial fund. |
| WASE | Investment Beneficiary | Company | A company supported by Elbow Beach's first fund. |
| Jon Pollock | CEO | People | CEO and managing partner of Elbow Beach. |
| Christine Hockley | Co-head of funds | People | Managing director and co-head of funds at the British Business Bank. |