The British Business Bank has committed up to £50 million to IQ Capital’s Fund V, extending a relationship that has seen the Bank make cornerstone commitments to all seven of IQ Capital’s funds since its first investment in Fund I in 2006.
IQ Capital, founded in 2005 and based in London and Cambridge, is an early-stage deep tech venture capital firm that supports companies from pre-seed through growth stages. The firm said it has backed more than 250 deep tech founders over its history, investing on the view that frontier technologies will underpin the next generation of globally significant companies. Alongside capital, IQ Capital positions its platform as providing operating insight to help founders move from seed to scale-up and through to exits.
The British Business Bank framed the commitment as part of its role in the UK venture market, where it describes itself as the largest investor in UK venture and venture growth capital funds. The Bank said cornerstone commitments are designed to help managers achieve a first close and to send a signal of confidence intended to attract additional private-sector capital into the fund.
Beyond fund commitments, the Bank highlighted a track record of portfolio co-investments alongside IQ Capital, including Thought Machine, Paragraf, CyberSmart, and Cambridge GaN Devices. The Bank said its relationship with IQ Capital spans both the firm’s five flagship funds and its two growth strategy vehicles.
IQ Capital said Fund V will continue its early-stage venture strategy, focusing on five thematic areas: AI and automation, computing and semiconductors, health and bio, advanced engineering and energy, and security and resilience. The transaction is being operated by British Patient Capital Limited, the British Business Bank’s wholly owned commercial subsidiary.
