SuperSeed has launched its third fund, securing a cornerstone commitment of up to £50 million from the British Business Bank to invest in seed-stage companies focused on physical AI. The fund, backed through the Enterprise Capital Funds programme, will target B2B AI and SaaS startups applying artificial intelligence to industries such as manufacturing, energy, construction, and autonomous systems.
Fund III will support companies developing software platforms, algorithms, control systems, and integrated hardware designed to make industrial infrastructure more intelligent. The strategy reflects a growing shift from experimental AI pilots to fully deployed, revenue-generating systems across physical industries.
Founded in 2018 by Mads Jensen and Dan Bowyer, SuperSeed has built a portfolio of 38 companies across its previous two funds. The firm emphasizes operational experience, with all partners having founded and scaled technology companies, and works closely with portfolio companies on commercial strategy, enterprise sales, and customer access.
The British Business Bank, as a major investor in UK venture and growth capital funds, provides cornerstone commitments to help funds reach first close and scale their investment strategies. Its Enterprise Capital Funds programme has backed 52 funds to date, representing more than £2.7 billion in finance for early-stage businesses.
SuperSeed’s latest fund has also been accredited by the UK’s National Security Strategic Investment Fund, continuing a relationship established with its prior fund. The focus on physical AI aligns with broader efforts to strengthen technological capabilities in sectors considered critical to economic growth and national strategy.
Portfolio examples include companies such as Ai Build, which develops generative algorithms for automated large-scale 3D printing, OctaiPipe, which deploys AI-driven energy optimization systems, Hive Autonomy, which builds software for managing autonomous industrial fleets, and All3, which combines AI design with automated construction to accelerate housing delivery.
KEY QUOTES:
“The companies we back are deploying AI into manufacturing lines, energy infrastructure, and construction sites, sectors where the UK has genuine industrial strength and strategic interest. Two years ago most of these were pilots. Today, they are live production systems with paying enterprise customers. That transition is what Physical AI means in practice, and it is why the British Business Bank has returned as our cornerstone investor for a second fund.”
Mads Jensen, Managing Partner at SuperSeed
“SuperSeed has a strong track record of identifying innovators and a deep understanding of how AI can be applied to sectors of national strategic importance, including those of the modern Industrial Strategy. This cornerstone commitment will crowd in additional private capital, backing innovative companies developing applied physical AI systems that drive and optimise efficiencies in critical business infrastructure.”
Christine Hockley, Managing Director And Co-Head Of Funds, British Business Bank
“SuperSeed’s focus on Physical AI aligns strongly with our ambition to strengthen technological capability in sectors that are central to future economic growth. Following our earlier commitment to SuperSeed’s Fund II in 2022, we are pleased to continue our support for SuperSeed as it backs founders turning advanced AI into real-world impact across the UK economy.”
Mark Sims, Senior Director, Funds, British Business Bank
