Arāya Ventures, a London-based venture capital firm announced on Monday the completion of the second close of its Arāya Super Angel Fund at £18.2 million, with a £5 million commitment from British Business Investments (BBI), a subsidiary of the British Business Bank.
The fund, led by Founder and Managing Partner Rupa Popat, aims to invest in up to 60 pre-seed and seed-stage startups over the next four years, with a primary focus on UK-based companies and a 20% global allocation.
The Arāya Super Angel Fund is described as “community-powered,” reflecting its diverse investor base, which includes fund of funds Saarthi Capital, C-suite professionals like former Credit Suisse CEO Phil Cutts and former Browns CEO Holli Rogers, successful entrepreneurs such as Rachel Pendered and Dr. Raoul-Gabriel Urma, venture capitalists like Niraj Pabari of Giano Capital and Daljit Sandhu, ex-COO of Precede Capital Partners, and family offices from the UK and Middle East.
Rupa Popat, with over 20 years of experience as an exited entrepreneur and investment banker, brings a unique perspective. Her five-year track record as an angel investor, including exit offers from Google Ventures and Unilever Ventures in 2023, positions her to offer more than just capital.
One portfolio founder noted, “Since investing in October, Arāya has already made valuable introductions to prospective investors and customers and has been advising us on our growth levers and strategy, following our explosive ARR growth last year.”
The fund has already deployed capital into nine companies, with over half focused on AI, including recent investments in Capably, Research Grid, and Cold AI, aligning with the UK’s leadership in AI innovation.
The fund’s launch coincides with a robust UK tech sector, which, according to Dealroom data, boasted 171 unicorns and a market valuation of $1.1 trillion in 2024. The UK has also emerged as a global leader in AI, with 1,800 venture capital-backed AI startups and 20 AI unicorns, as reported by Tech Nation’s 2024 report.
Arāya Ventures, founded in 2022, also operates the Arāya Ventures Academy for Angels (AVA Angels), an angel investment academy for new investors, further amplifying its ecosystem impact.
The fund’s strategy includes both Enterprise Investment Scheme (EIS) and non-EIS investments, with ticket sizes ranging from £180,000 to £490,000, aiming for 10 to 15 investments per year.
BBI’s £5 million commitment, made through its Regional Angels Programme, is designed to reduce regional imbalances in access to early-stage equity finance for smaller businesses across the UK. This marks BBI’s first commitment to a solo GP fund, highlighting confidence in Popat’s vision.
This partnership aligns with efforts to decentralize venture capital, traditionally concentrated in London and the South East.
Popat expressed enthusiasm, noting, “I am thrilled to have secured the support of British Business Investments in Arāya, their first ever commitment to a Solo GP, underscoring our shared commitment to fostering innovation and driving growth in the technology sector whilst addressing imbalances that exist in the early-stage funding environment.”
Despite economic headwinds and declining early-stage funding, Arāya Ventures is positioning itself as a catalyst for innovation in the UK startup scene. Its investment strategy, combined with a strong support network, could pave the way for groundbreaking startups to thrive.
Popat remains optimistic: “With the backing of BBI and a diverse group of investors, we are committed to fostering innovation and bridging funding gaps. We believe the next wave of tech leaders will emerge from our portfolio.”
As the fund continues deploying capital, its ability to balance breadth with depth in startup support will determine its long-term impact on the UK’s entrepreneurial ecosystem.
