Elbow Beach Announces Launch and First Close of £80M Climate Impact Fund 2 to Support Early-Stage UK Startups in the Transition to a Low-Carbon Economy

Elbow Beach, a climate impact-focused seed investor based in London, has officially announced the launch of its second fund, alongside its first successful close.

The company, known for backing early-stage technologies with a focus on sustainability, has already secured £63 million in commitments for its targeted £80 million Climate Impact Fund 2.

Capital Backing and Ambitious Goals for the Fund

The new fund has received substantial backing, including up to £50 million from the British Business Bank through its Enterprise Capital Funds program.

With £40 million available for immediate deployment, Elbow Beach is ready to invest in up to 36 promising British startups over the next four years.

The aim is to accelerate these companies’ scaleup efforts, supporting the growth and export potential of some of the country’s most innovative early-stage technologies.

Focus on Transformative Technologies for a Low-Carbon Future

Elbow Beach’s fund is designed to invest in technologies that can drive industries toward more efficient and cost-effective operations while supporting the transition to low-carbon models.

The fund’s investment strategy includes sectors such as automation and AI, carbon capture, electrification, and the development of low-carbon materials.

These sectors are seen as crucial for addressing climate change and creating a sustainable future.

CEO Jon Pollock’s Vision for Supporting Early-Stage Innovation

Under the leadership of Jon Pollock, CEO and Managing Partner, Elbow Beach has been supporting early-stage tech companies since 2021.

The firm focuses on helping startups progress through stages from pre-seed to Series A and scaleup.

By applying tailored investment models, Elbow Beach enables startups to unlock their full value potential.

Building on Success with Initial Fund Investments

Elbow Beach’s first fund, which raised £20 million, has already seen success with investments in several impactful companies.

Notable portfolio companies include Munro Vehicles, the Scottish-based maker of an all-electric utility vehicle for heavy industry; Anaphite, a chemical engineering firm from Bristol that reduces the energy required to make EV batteries; and WASE, a Bristol-based company that transforms wastewater into energy.

With its second fund, Elbow Beach is committed to further driving innovation in the climate tech space, helping early-stage companies scale and create meaningful, sustainable impact.