Volution Launches £75m Fund to Address UK Post-Series A Fintech and SaaS Gap

Volution, a venture capital group based in London, has introduced a £75 million ($100 million) fund targeted at fintech and SaaS businesses beyond the Series A stage. The fund aims to address a significant funding gap in the UK tech sector, where focus has traditionally been on the very early stages of growth. Despite robust early-stage investment activities, UK tech companies face challenges in securing post-Series A funding essential for scaling. Volution's fund responds to this need by supporting companies with established revenue streams and accomplished product-market fit. These companies will have a minimum annual recurring revenue of £5 million. The fund's strategy includes not only financial backing but also leveraging Volution's team's expertise in scaling tech businesses. Volution's managing partner, James Codling, emphasized the structural funding challenge in the UK, noting that companies often struggle post-Series A, becoming either stagnant or acquired. The fund's launch coincides with strengthening economic ties between Japan and the UK, underscored by a partnership with Japanese VC firm SBI Investment Co. The UK is viewed as a leading destination for FinTech and AI investments due to its strong regulatory environment and robust entrepreneurial ecosystem.