UK-based VC Firm Volution Launches $100M Fund to Close Britain’s Tech Scale-Up Gap

The fund is backed by Japan’s SBI Investment Co. and will focus on investing in fintech, AI, and SaaS companies that are ready to grow but lack later-stage funding.

Right now, early-stage funding in the UK is still strong, but investment drops off sharply as companies try to grow further. In fact, Series A funding fell by 44% in 2024, and fewer startups are making it from Series A to Series B. This puts the UK’s tech growth at risk.

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Volution wants to change that by giving support to companies that are ready to scale internationally. The fund has already invested in one fintech and one AI company.

“The UK has a huge challenge at the moment. The government is laser focused on productivity and growth but there is a fundamental structural funding challenge," said James Codling, Managing Partner at Volution.

"We have overfocused on unlocking cash at the very early stage through various tax efficient investment schemes but the money tends to evaporate post Series A. Companies get sold, fold, or become walking zombies. Investment at the inflection point of international growth is critical for the tech company and offers the most significant returns for LPs."

“The businesses we back aren't just an idea and a couple of letters of intent. These are successful businesses aligned with the Government's Industrial Strategy. They have figured out product-market fit, have a solid go-to-market strategy, and are achieving significant revenue of at least £5m ARR. Volution is the catalyst to propel them to the next stage, both financially and by leveraging the team's extensive experience in scaling tech businesses.”

SBI Investment, the venture arm of Japanese financial giant SBI Holdings, has made a number of UK investments in recent years, including into Oxford Quantum Circuits, Elliptic, and Tide.

Tomoyuki Nii, Director and Executive Officer for Overseas Investment at SBI Investment Co., said: “The UK is a global leader in FinTech and AI, with world-class universities, a strong regulatory environment, and a thriving entrepreneurial ecosystem. These strengths make it an attractive destination for investment. Our cornerstone commitment to Volution comes at a time when Japan and the UK government are strengthening economic ties to drive growth across both markets. Building on the success of Volution’s first fund, it will provide a new funding option for fast-growing UK businesses looking to scale.”

One of Volution’s investments is Zopa Bank, a well-known UK fintech company. Volution supports businesses that are too big for seed funding but not yet ready for private equity. They provide both money and expert advice to help these companies grow to the next stage.

About Volution

Volution is a top provider of ventilation products, serving customers in the UK, Europe, and Australasia. Their goal is to make ventilation better by helping people use less energy and enjoy cleaner, more comfortable indoor air.