London investors raise $34m fund aimed at increasing tech diversity
A smorgasbord of investment giants have collaborated in backing a new fund focused on diversity, both in terms of the founders it backs and the customers those startups serve.
Ada Ventures has today revealed a $34m (£27m) fund, with the British Business Bank’s (BBB) Enterprise Capital Funds’ programme as its cornerstone investor.
The fund is also supported by US-based Bluesky Capital, Dubai’s Rasmala, London’s Atomico and Inovia Capital, and individuals such as Transferwise co-founder Taavet Hinrikus and City stalwart Dame Cilla Snowball.
Managed by founding partners Francesca Warner and Matt Penneycard, Ada will target first-cheque seed investments of around £500,000, with around half of the fund reserved for follow-on support.
Chasing “the most diverse pipeline, and portfolio, of any fund in Europe”, it hopes to make 30 investments in firms traditionally overlooked by venture capital.
Research conducted by Atomico this year found 92 per cent of funding invested in Europe goes to all-male teams, while 83 per cent of founders are white.
Read more: Diversity of senior leadership in British venture capital fails to improve
Separate BBB research showed that for every £1 of venture investment in the UK, all-female teams receive less than 1p.
“Fundamentally, Ada Ventures is about true inclusion, and we will invest in anyone, no matter what they look like and where they come from,” said Warner.
Ken Cooper, managing director of venture solutions at BBB, added: “Ada Ventures is an important step in the right direction for the UK venture capital ecosystem, with a fund focused on democratising VC investment regardless of gender, race, background, or location.
“By backing first time fund managers and taking cornerstone positions through the Enterprise Capital Fund programme, the bank can support funds like Ada Ventures in creating greater diversity within startup funding.”