UK Fintechs are among the beneficiaries from the second close of the Arāya Super Angel Fund. Valued at £18.2million, the Arāya Super Angel Fund got a £5 million boost from British Business Investments, a subsidiary of the British Business Bank. The community-powered fund will invest in up to 60 pre-seed and seed stage, primarily UK, startups in health, fintech, commerce and the future of work over the next four years.
The announcement comes amid a promising backdrop for UK start-ups, with the UK tech sector sporting 171 unicorns and a $1.1 trillion 2024 market valuation of $1.1 trillion. The UK reportedly has 1,800 VC-backed AI startups and 20 AI unicorns already.
Arāya has invested in nine companies, mostly AI startups. Recent investments include Capably, Research Grid, and Cold AI.
British Business Investments made the £5 million commitment through its Regional Angels Programme, which helps reduce regional imbalances in access to early-stage equity finance for smaller businesses across the UK, to be invested alongside the fund. The fund’s investors include fund of funds Saarthi Capital, C-suite professionals such as former Credit Suisse CEO Phil Cutts and former Browns CEO Holli Rogers, entrepreneurs including Rachel Pendered and Dr. Raoul-Gabriel Urma, VC investors such as Niraj Pabari of Giano Capital and former COO of Precede Capital Partners Daljit Sandhu and family offices from the UK and the Middle East.
“This is Arāya Ventures’ debut fund and I’m incredibly proud of what we are founding and MPable to offer both our investors and founders,” founder and managing partner Rupa Popat said. “As a former founder turned investor, I’ve been on both sides of the table and I know that for most early-stage founders, whilst capital is important, it’s also about the additional value and support that investors can provide. And my goal is for us to be operationally impactful to founders with access to our deep and extensive networks.”
“I am thrilled to have secured the support of British Business Investments in Arāya, their first ever commitment to a Solo GP, underscoring our shared commitment to fostering innovation and driving growth in the technology sector whilst addressing imbalances that exist in the early-stage funding environment.”
‘’We are excited to partner with Rupa and Arāya Ventures,” British Business Investments managing director Adam Kelly added. “The Super Angel Fund is a great example of leveraging angel expertise in a formal committed structure which works well for investee companies. The Regional Angels Programme plays an important role in reducing imbalances in access to early-stage equity finance for UK smaller businesses.”
“By co-investing alongside Arāya’s Super Angel Fund, we are bringing together finance, business experience and skills to support the development of high-growth smaller businesses across the UK.”