The British Business Bank has announced a €20m (£17.5m) commitment to the £98.6m Notion Capital Opportunities III fund.
The new fund from the GoCardless investor marks the latest support from Notion Capital’s long-term partner, the British Business Bank, which has invested the firm’s last four core venture funds.
The latest fund from the fintech and SaaS investor will provide additional capital to the so-called ‘winners’ of previous venture funds.
Notion Capital Opportunities III will back both existing portfolio companies that have demonstrated success and high growth rates, as well as a handful of new external deals.
The fund will focus on firms in the UK and Europe and will continue the investor’s targetting of enterprise software companies and fintechs.
“I am delighted to announce this, our latest, growth fund. Our team has built a strong brand and reputation, and LP demand for the fund in a challenging fundraising environment is testament to this,” said Notion Capital managing partner Stephen Chandler (Pictured).
“We are a diverse team spanning 12 nationalities which gives us extraordinary reach and access across the market with AI driving huge innovation in the software landscape.”
The fund has already made several investments, including in existing venture portfolio company Upvest and newly backed energy tech firm Kraken.
“Funds like Notion’s are critical to the UK venture landscape. While we’re very good at funding startups in the UK, there is a distinct lack of funding available when it comes to growth stage companies,” said Christine Hockley, managing director and co-head of funds at the British Business Bank.
“The amount of capital received by US companies in the fifth or sixth funding round is often more than double what UK companies raise. Our goal is to close that gap and ensure that high potential companies can access the capital they need to expand.”
