Concept Ventures launches £50m fund to fill ‘big’ pre-seed gap

London-based venture capital firm Concept Ventures has launched a £50m fund to invest in Britain’s pre-seed start-ups and address the “big gap” at that stage of the investment ecosystem.

The fund will invest between £100,000 and £600,000 in more than 60 start-ups over the next four years.

Coinciding with its pre-seed fund launch, Concept Ventures has rebranded from RLC Ventures – the name under which the VC firm was launched in 2018.

In those four years as RLC Ventures, he supported more than 100 founders at the pre-seed stage.

State-owned British Business Bank provided a £30m seed investment for the oversubscribed think tank fund. That came through the bank’s Venture Capital Funds (ECF) programme.

The fund aims to close the funding gap at the pre-seed level. The VC said that 71% of the founders he has backed have taken their startups past the pre-seed stage.

Two of his portfolio companies have disappeared in the last two years, including, which was received at Gtmhub in June for an undisclosed sum.

“There is a huge gap in the pre-seed ecosystem, with a dearth of funds offering dedicated pre-seed expertise,” said Reece Chowdhry, founder and general partner of Concept Ventures.

“We are fully focused on this critical stage of a company’s life cycle and are able to provide the funding, expertise and network they need to succeed. We are very committed to setting up our portfolio for future success.”

Concept Ventures focuses on ‘founder personality’

Concept Ventures said the “personality of a founder” will be a key factor in choosing investments. This approach is not uncommon at the pre-seed stage, as these startups tend to have a vision rather than a clearly defined business model or product-market fit.

But Concept Ventures sees a gap in the investment space to focus solely on pre-seed stage companies. In recent years – amid record levels of VC money available – the lines between stages of funding have often blurred.

Concept Ventures sees this as an opportunity to provide more targeted advice to start-ups at this stage and said it provides a tailored framework for founders to guide them through the first 12-18 months.

Limited partners at the fund are 80% ethnic minorities and 18% women, Concept Ventures added.

Ken Cooper, managing director, venture solutions at British Business Bank, said: “Our cornerstone commitment to Concept Ventures will help them provide finance and support to young and diverse high-potential businesses at the pre-seed stage, helping to close. the early stage equity funding gap.”

Concept Ventures launches £50m fund to fill ‘big’ pre-seed gap

Source link Concept Ventures launches £50m fund to fill ‘big’ pre-seed gap

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