Episode 1, a Venture Capital firm based in London, has successfully closed its third early-stage fund at £76 million (approximately €88.72 million). This new fund includes a significant £20 million (nearly €23.34 million) cornerstone commitment from British Patient Capital and the National Security Strategic Investment Fund, positioning Episode 1 to further empower pre-seed and seed-stage B2B software startups in the UK.
With this latest fund, Episode 1 is set to invest between £250K and £3M in promising UK-based software companies, focusing on sectors such as AI, TechBio, open-source software infrastructure, healthtech, and marketplaces. The firm plans to make 10 to 15 new investments annually, with a portion of the fund reserved for follow-on investments. Episode 1 has already begun deploying capital from this new fund, signaling an active phase of support for the UK’s burgeoning tech ecosystem.
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A Testament to Foundational Success
Hector Mason, General Partner at Episode 1, highlighted the significance of this new fund as a reflection of the success and potential of their portfolio founders. “This new fund, our biggest yet, is really a testament to the work of our portfolio founders who are building some of the fastest-growing companies in Europe,” Mason stated. The fund aims to not only provide financial support but also to double down on Episode 1’s team and the proprietary technology that has been instrumental in their success to date.
Enhanced Support for Founders
Looking ahead, Episode 1 aims to bolster its reputation for adding substantial value to founders by further developing its operational excellence. The firm plans to deploy its team members to assist startups in sourcing senior hires, optimizing future fundraises for Series A rounds, and providing hands-on support at crucial stages of the startup journey.
Diverse Investor Base
The new fund boasts over one-third of its Limited Partners (LPs) as former or current founders, including 21 previously backed by Episode 1. Notable founder LPs include Alex Chesterman (Zoopla and Cazoo founder), Aidan Corbett (Wayflyer founder), Aron Gelbard (Bloom & Wild founder), and Alex MacDonald (Velocity Black and Sequel founder). This diverse investor base underscores the strong community and network the VC has cultivated within the tech startup ecosystem.
Episode 1’s Continued Impact
Since its inception in 2013, Episode 1 has been a pivotal force in the UK’s tech startup scene, focusing on B2B software companies at the pre-seed and seed stages. With a portfolio that includes companies like Zoopla, Huboo, Carwow, and Omnipresent, the venture capital firm has established itself as a key player in nurturing the next generation of tech innovators. The firm’s commitment to facilitating venture access for first-time founders and its successful track record of exits and Series A graduations highlight its influential role in shaping the future of technology entrepreneurship in the UK and beyond.
