Sure Valley Ventures, a venture capital firm that invests in high-growth software companies in sectors such as the Metaverse, artificial intelligence and cybersecurity, has completed an £85m first close of a £95m UK software technology fund. This includes a £50m investment from the British Business Bank through its Enterprise Capital Funds (ECF) program, which aims to increase the supply of equity capital to high-potential, early-stage UK companies.
The VC firm plans to invest in 25 software companies from across the UK through its new fund. Currently based in London, Dublin, and Cambridge, the Sure Valley team will also be opening an office in Manchester to help access deals in the innovation clusters that have developed around creative technologies in the North of England and in the Metaverse and AI opportunities in cities such as Manchester, Leeds, Sheffield and Newcastle.
“We are delighted to partner with the British Business Bank and existing and new investors on this new £95m UK software technology fund,” Sure Valley Ventures managing partner and co-founder Barry Downes said. “We are excited to expand on our existing London and Cambridge hubs, by opening a new office in Manchester. Many cities, including Manchester, as well as Leeds, Sheffield and Newcastle, have become dynamic tech hubs for start-ups.”
“As entrepreneurs and founders ourselves, we have been on the other end of the table and therefore understand the challenges that start-ups face for funding. A local presence will ideally position us to execute on exciting deals in this region and we are always willing to travel across the UK to meet exceptional leaders, to invest in their businesses and help them scale and grow in international markets.”
“The British Business Bank’s Enterprise Capital Funds programme plays a significant role in developing and maintaining effective venture capital provision in the UK, lowering the barriers to entry for emerging fund managers and for those targeting under-served areas of the market,” Ken Cooper, managing director, venture solutions, for the British Business Bank said. “Our cornerstone commitment to Sure Valley will support investment into high potential, early stage software companies that are leading change in the disruptive tech sector, across the UK.”
“The AI and immersive tech sectors are major British success stories and investments like this one by Sure Valley Ventures ensures that early stage companies in the Northern Regions can access the funding necessary to help them compete at the forefront of global innovation,” Minister for Investment, Lord Gerry Grimstone, added. “It’s fantastic to see this investment into the North of England which demonstrates the U.K.’s investment attractiveness as we continue to level up all parts of the UK.”
The sectors Sure Valley Ventures invests in have significant growth potential over the next few years, it believes. Goldman Sachs and Morgan Stanley are predicting the Metaverse could be an $8 trillion opportunity. Cybersecurity is due to grow to $203 billion by 2027. Sure Valley has a track record in these sectors, having invested in them since the firm’s inception in 2017 through companies including Getvisibility, Smarttech, Nova Leah and Precog Systems in the security space, Engage XR, War Ducks, Admix, Volograms, VividQ and Virtex in the Metaverse sector and Cameramatics, Artomatix and Ambisense in AI.
Sure Valley supports entrepreneurs via its value-adding Platform, which draws on the team’s knowledge and experience as founders to create a program which is tailored to each investee company’s individual needs. Sure Valley’s platform also features a global network of advisors, based in San Francisco, Silicon Valley, New York, LA, Austin and Seattle in the USA as well as leading European and Asian locales.