The British Business Bank has committed €20 million (£17.3m) to Notion Capital’s new €114 million (£98.6m) growth fund, Notion Capital Opportunities III.
The investment strengthens the partnership between the state-backed bank and the London-based venture capital firm, which has a track record of backing high-growth UK and European software companies.
The British Business Bank has been a long-standing backer of Notion Capital, investing in the firm’s last four core venture funds as well as its previous Opportunities Funds. The new growth vehicle is designed to complement Notion’s flagship venture strategy by supplying additional capital to existing portfolio “winners” and select new growth-stage opportunities.
Notion’s model has already supported some of the UK’s most notable tech scaleups, including GoCardless, Paddle, and YuLife.
Focus on growth-stage innovation
Opportunities III will target growth-stage companies across four high-potential sectors:
• Knowledge – SaaS platforms accelerated by artificial intelligence
• Money – fintech and adjacent industries
• Labour – AI transforming service markets
• Machines – AI interacting with and learning from the physical world
These areas, the firm notes, align with Europe’s growing focus on sovereign resilience strategies in cyber security, supply chain and defence technology.
The fund has already made investments, including further backing for venture portfolio company Upvest and new growth deals in Nelly and Kraken. Notion anticipates around a dozen core investments from Opportunities III.
Stephen Chandler, Managing Partner at Notion Capital, said: “I am delighted to announce this, our latest, growth fund. LP demand in a challenging fundraising environment is testament to the strength of our brand and reputation. We are a diverse team spanning 12 nationalities, giving us extraordinary reach and access across a market where AI is driving huge innovation.”
Christine Hockley, Managing Director and Co-Head of Funds at the British Business Bank, highlighted the importance of closing the funding gap for later-stage UK businesses: “While we’re very good at funding startups in the UK, there is a distinct lack of funding for growth-stage companies. US firms often raise more than double the capital at this stage. Our goal is to close that gap and ensure high-potential companies can expand.”
Michael Laycock, Investment Director at the British Business Bank, added: “Notion is a long-term partner for the British Business Bank and a key player in helping innovative UK software companies scale into category leaders. Their latest Opportunities Fund ensures ambitious founders can access continuity of capital as they internationalise.”
The fund launch comes at a time when policymakers and investors alike are calling for more growth-stage capital to help the UK’s most innovative companies scale globally. With its third Opportunities Fund, Notion Capital aims to play a pivotal role in bridging the later-stage funding gap and backing the next wave of European tech leaders.
