Ada Ventures, a venture capital firm based in London and Bristol, has successfully closed its second fund, securing GBP 63 million.
The fund is earmarked to support a diverse group of early-stage founders with breakthrough ideas.
Notable institutional investors supporting Fund II include the British Business Bank, The University Of Edinburgh, Big Society Capital, Legal & General Capital, Atomico, The Export and Investment Fund of Denmark (EIFO), and Molten Ventures.
Founder investors, including Taavet Hinrikus of Wise and Illusian, the family office founded by Ilkka Paananen, co-founder and CEO of Supercell, have also joined the funding initiative.
Investment Strategy and Focus Areas
Ada Ventures plans to deploy investments ranging from £250,000 to £1.5 million in pre-seed and seed-stage startups.
A substantial portion of the fund will be allocated for follow-on investments.
The firm has already made 12 investments from the second fund and aims to make 10 to 12 investments annually.
The focus areas for these investments include climate equity, economic empowerment, and healthy aging.
Inclusive Alpha® Approach and Support Initiatives
The fund introduces an innovative ‘Inclusive Alpha®’ approach to its investment decisions.
This strategy emphasizes outperforming the market through funds derived from an inclusive infrastructure and investing approach.
Ada Ventures is committed to supporting mental health for founders and has initiated a program to assist parents in their portfolio by covering childcare costs.
This initiative, launched in October, has seen enthusiastic participation from nearly 15% of the firm’s portfolio companies.
Success and Portfolio Highlights
Founded in 2019 by Check Warner and Matt Penneycard, Ada Ventures has a track record of supporting successful companies, including Huboo, Boundless, Bubble SideQuest, Spill, Materials Nexus, Greenworkx, Micrographia, Gizmo, and Tooth Fairy.
Portfolio companies have received co-investment and follow-on funding from prominent firms such as GV, NFX, DCVC, and Index Ventures.
Scout and Angel Network Model
Ada Ventures has developed an effective approach to deal sourcing through its Scout and Angel network.
The Ada Scout program includes nearly 100 scouts across the UK, with a 20-strong cohort of “Ada Angels” having access to an investment pot of up to £50,000.
Approximately 30% of investments from Fund I and Fund II have been sourced through the Ada Angels or Ada Scout network.
Following this success, Ada Ventures plans to expand its model into new markets across Europe in the coming months.
Empowering Diversity and Breakthrough Ideas
Ada Ventures’ accomplishment in securing GBP 63 million reflects the strong commitment to fostering diversity and supporting groundbreaking ideas in the startup ecosystem.
The Inclusive Alpha® approach not only sets a strategic investment foundation but also underscores the importance of holistic support for founders’ well-being.
Ada Ventures’ expansion plans into European markets signal a broader mission to empower innovation and inclusivity beyond geographical boundaries.
Conclusion: Nurturing Innovation and Expanding Horizons
As Ada Ventures embarks on its journey with Fund II, the venture capital firm positions itself as a key player in advancing inclusive and impactful investments.
The success of the fundraising effort, coupled with the innovative approach to support networks, signifies a forward-looking commitment to nurturing innovation and empowering founders on a global scale.
The expansion into European markets adds an exciting dimension to Ada Ventures’ mission of driving positive change through strategic investments.
Share on Facebook «||» Share on Twitter «||» Share on Reddit «||» Share on LinkedIn