Molten Ventures Growth Fund Reaches £175m First Close with British Business Bank Backing

Molten Ventures has reached a £175 million first close for its Growth Fund, securing a £75 million cornerstone commitment from the British Business Bank as it expands its capacity to invest in later-stage UK and European technology companies.

The remaining £100 million at first close has been committed by Molten Ventures, with the London-listed venture capital firm targeting a final fund size of £350 million.

The Growth Fund will continue Molten’s existing Series B+ investment strategy, providing additional capital to high-growth technology businesses moving from early growth into the scale-up stage.

According to Molten, its growth investment strategy has completed more than 40 deals and deployed over £700 million during the past decade.

The new vehicle also represents a further step in Molten’s strategy to increase third-party capital under management alongside its listed balance sheet.

Addressing the European Growth Capital Gap

Access to later-stage growth capital remains an important issue for technology businesses seeking to scale from the UK and Europe.

Molten’s new fund is designed to provide institutional capital to companies at Series B and beyond, allowing the firm to make additional investments in businesses it identifies as high-conviction opportunities.

The strategy will target technology sectors including artificial intelligence, space, fintech, quantum, deeptech and hardware.

Molten said the fund will allow private institutional investors to access its growth investment strategy through a private fund structure while drawing on the investment platform, governance and infrastructure developed through its listed business.

Ben Wilkinson, Chief Executive Officer of Molten Ventures, said the British Business Bank commitment represented an endorsement of both the strategy and the relationship between the two organisations.

He also highlighted the need for greater pools of long-term institutional capital to support ambitious UK and European technology companies as they scale.

British Business Bank Becomes Cornerstone Investor

The £75 million commitment extends an existing relationship between Molten Ventures and the British Business Bank.

The Bank has been an investor in Molten’s listed platform since 2018 and has previously co-invested alongside Molten in UK technology companies including SatVu, IMU Biosciences, Thought Machine and Paragraf.

Robert Greenwood, Senior Director, Funds at the British Business Bank, said the commitment forms part of the Bank’s strategy to help UK technology investors establish new growth funds and create deeper pools of later-stage capital for breakthrough technologies.

The objective is to provide growing technology companies with greater access to the capital required to scale internationally while continuing to build from the UK.

Building Third-Party Capital Alongside the Listed Platform

The Growth Fund forms part of a broader expansion of Molten’s investment platform.

Alongside its growth strategy, Molten has established a dedicated secondaries investment team as it seeks to increase third-party assets under management and broaden the ways institutional investors can access its investment capabilities.

Molten says it has deployed more than £1 billion since 2016 and realised more than £800 million in proceeds from investments. Across the group, it manages more than £2 billion in assets.

The Growth Fund will now seek further institutional investors as Molten works towards its £350 million target.

For private wealth and institutional investors, the first close also illustrates the continuing development of private-market structures designed to channel institutional capital into later-stage UK and European technology businesses.