Key Takeaways
• Volution has launched a $100 million fund aimed at supporting revenue-generating FinTech, AI, and SaaS businesses.
• The fund targets mid-stage companies with at least £5 million in revenue to help bridge the scaling investment gap.
• Volution partnered with Japanese venture capital firm SBI Investment Co. to expand the fund’s reach.
• Early investments have already been made in one FinTech and one AI company, although their identities remain undisclosed.
Volution, a venture capital firm recognized for backing companies like Zopa Bank and Signal AI, has announced the launch of a $100 million fund to accelerate growth-stage FinTech, AI, and SaaS businesses.
This strategic initiative responds to a mounting challenge in the UK tech sector: the widening funding gap for companies seeking to transition from early traction to scaled success.
Mid-Stage Investment Gap Widens for UK Tech Companies
While early-stage venture funding remains relatively healthy, mid-stage firms are increasingly struggling to secure the capital needed to grow. Citing research from Dealroom, Volution revealed:
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Series A funding dropped by 44% in 2024 compared to the previous year.
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Series A to Series B conversion rates have fallen by over 50% in the past five years.
• Lower conversion rates indicate a bottleneck in the growth funding pipeline.
• Volution’s fund seeks to fill this gap for firms with proven business models.
Volution’s new fund is structured to address these challenges by backing companies that have established product-market fit, a solid go-to-market strategy, and annual revenues of at least £5 million.
Strategic Global Partnership with SBI Investment Co.
The fund was developed in collaboration with SBI Investment Co., a leading Japanese venture capital firm.
The partnership strengthens Volution’s financial capabilities and broadens its global market reach, providing additional resources and strategic advantages to the portfolio companies.
Though names have not yet been revealed, Volution confirmed it has already deployed capital into one FinTech and one AI company through the new fund.
A Shift in Investment Focus: From Ideas to Impact
Addressing the current venture capital climate, James Codling, Managing Partner at Volution, commented on the industry’s traditional focus:
Codling outlined Volution’s different approach, highlighting their emphasis on supporting companies with tangible achievements rather than speculative ideas:
This strategy underlines Volution’s commitment to investing in companies with validated market positions and growth momentum.
Strengthening the UK’s Innovation Economy
The launch of Volution’s $100 million fund marks an important step for the UK’s tech landscape at a time when growth-stage funding is harder to secure. By focusing on firms with real revenues and operational maturity, Volution aims to:
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Help bridge the gap between early success and large-scale sustainability.
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Support companies critical to advancing key sectors like financial technology and artificial intelligence.
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Enhance the UK’s global competitiveness in emerging technology markets.
Through this initiative, Volution not only addresses a systemic funding challenge but also contributes to building a stronger, more resilient innovation economy in the United Kingdom.
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