Cambridge Innovation Capital (CIC), the venture capital firm closely tied to the University of Cambridge, has launched a £100 million fund aimed at scaling up high-potential startups. The new fund aligns with the UK government’s ambition to spur economic growth through its universities, with an emphasis on advancing innovation and creating jobs.
The fund, which marks a new phase for CIC, has secured substantial backing from British Patient Capital, a government-owned arm of the British Business Bank, and Aviva Investors. It focuses on scale-ups—startups that have already proven their business models and are primed for rapid expansion—distinguishing it from CIC’s earlier funds, which typically invest in early-stage ventures.
Andrew Williamson, Managing Partner of CIC, stated that the fund’s mission is to discover the next generation of major success stories in the UK, referencing companies like DeepMind, Arm, and AstraZeneca as benchmarks. “We have several companies in our portfolio that could become the next big names, and this fund will help scale them,” he added.
CIC, with over £600 million in assets under management, specializes in commercializing cutting-edge technologies developed at the University of Cambridge. It has a strong focus on sectors such as life sciences and deep tech, where fundamental scientific breakthroughs drive the potential for transformative innovation.
The new fund has already made its first investments in two Cambridge-based companies: Pragmatic Semiconductor, a leader in chip design and manufacturing, and Riverlane, a pioneering firm in the quantum computing space.
This fundraising effort comes shortly after the UK government renewed its push to boost the economic output of the “Oxford-Cambridge Arc,” a region that encompasses the two prestigious universities. Peter Kyle, the UK’s Secretary of State for Science, Innovation, and Technology, emphasized the government’s goal to double the region’s economic impact, furthering the alignment between CIC’s new fund and national priorities.
Williamson, who co-chaired a recent review on university spinouts in the UK, noted that CIC’s new fund fits perfectly with the government’s vision. “The government is focusing on high-impact investments, and that’s exactly what we’re doing with this fund,” he said.
CIC joins a growing number of venture capital firms focused on backing university spinouts, with competitors like Oxford Science Enterprises, established in 2015, and Northern Gritstone, which supports startups from universities in Manchester, Leeds, and Sheffield. Northern Gritstone raised over £300 million in 2023 and is currently working on raising an additional £50 million.
Williamson highlighted a critical challenge for UK startups, noting that advanced companies in the scale-up phase often struggle to find domestic investment. “By the time a company reaches the scale-up stage, 80-90% of the capital comes from overseas. While we welcome foreign investment, there is still ample opportunity for UK funds to participate,” he explained.
This new £100 million fund signals CIC’s continued commitment to fueling innovation and reinforcing the UK’s position as a leader in advanced technology and scientific research.
Related topics:
Super Funds Start 2025 on a Strong Note
DigitalX to Shut Down Investment Funds, Shifts Focus to Profitable Ventures
