Octopus Ventures has announced the first close of First Cheque II (FC II), its second dedicated pre-seed investment fund, as the UK-based venture capital firm expands its support for early-stage businesses across Europe.
The new fund is targeting a total raise of more than twice the £10 million secured by its predecessor, First Cheque I.
Both funds are designed to support entrepreneurs at the earliest stages of building their businesses, providing investment from the beginning of their startup journeys.
Octopus Ventures, part of Octopus Investments, operates across Europe and invests in entrepreneurs developing businesses and technologies across emerging and established industries.
Kirsten Connell and Tilly Fleming to Lead Investment Strategy
First Cheque II will be led by Kirsten Connell and Tilly Fleming.
Connell previously worked as part of the original investment team at Seedcamp, while Fleming is an alumna of Venrex and was recognised on Forbes’ Finance 30 Under 30 list.
The fund will invest in UK and European startups operating across several sectors, including artificial intelligence, biotechnology, healthcare, deep technology, financial technology, robotics and technologies transforming the physical world.
First Cheque I Portfolio Includes Companies Valued at More Than $3 Billion
The launch of the second fund follows the performance of First Cheque I, which Octopus Ventures describes as a top-quartile global performer and one of Europe’s leading pre-seed investment funds.
Its portfolio comprises more than 80 companies, including OLIX, which is now valued at more than $3 billion.
Another portfolio company, Prima Mente, an artificial intelligence-driven biology business, has also recently secured investment from Nvidia.
Octopus Ventures Acquires OnStage Fund and Portfolio
As part of First Cheque II’s initial close, the fund has acquired the investment fund and portfolio established by OnStage, an early-stage investment platform founded in 2020.
OnStage was established by Taos Edmondson, a partner at dmg ventures, and Hector Mason, general partner at Episode 1 Ventures.
The acquisition gives First Cheque II an initial portfolio of six companies, including Serova Bio, a biotechnology company using artificial intelligence to develop personalised cancer vaccines.
Edmondson will remain involved with Octopus Ventures as a Venture Partner.
The firm will continue making investments across different stages while pursuing both organic and inorganic growth.
Six Investment Areas Identified for First Cheque II
The second fund will concentrate on six broad areas of technological development.
These include the infrastructure, models and tools required to power the next generation of artificial intelligence, alongside robotics and edge intelligence.
Other priorities include technology-driven developments in healthcare, biology and longevity, as well as digital security and governance.
The fund will also target new industrial operating systems and technologies addressing challenges in energy, materials and the environment.
Fund Plans to Back More Than 80 Founders Across Europe
Like its predecessor, First Cheque II intends to build a diversified portfolio comprising more than 80 founders and their businesses across the UK and Europe.
Through its pre-seed investment strategy, the fund will focus on supporting entrepreneurs developing businesses in the identified technology and innovation sectors from the earliest stages of their operations.
