London-based venture capital firm, Bethnal Green Ventures (BGV), renowned for its commitment to ‘tech for good,’ has proudly announced the successful initial closing of its largest fund to date, amounting to a substantial £33 million. Participating investors include esteemed entities such as the British Business Bank, M&G Capital, Big Society Capital, and Peter Bristot, the Managing Director of 22 Ventures.
Paul Miller OBE, Founder, CEO, and Managing Partner of BGV, shares that this funding initiative aims to bolster up to 100 startups over the next four years. Through its flagship Tech For Good Programme, each selected venture is set to receive a £60,000 investment for 7% equity. Additionally, BGV plans to make follow-on investments of up to £1 million at pre-seed into the most promising ventures that successfully complete the program. Miller asserts, “The fund target is £50 million, and we’re hoping to do a final close by May 2024.”
Over the past four years, BGV has secured smaller funds, primarily SEIS and EIS funds, totaling £6 million. Since its establishment in 2015 under the leadership of Managing Partners Melanie Hayes and Paul Miller, BGV has backed 177 ventures, including notable names like Fairphone, LettUs Grow, and Piclo, through its Tech for Good Programme. The firm has played a pivotal role in shaping the tech for good movement in the UK, achieving ‘firsts’ such as becoming the first UK VC firm to certify as a B Corp in 2015.
An essential element of this new fund is its commitment to invest at least half of the funds into ventures founded by women. BGV is currently inviting founders to apply for funding, with the deadline for the Spring 2024 Programme set for January 7, 2024. Paul Miller emphasizes the selection criteria, stating, “We’ll be selecting the most promising startups based on their potential to become commercial and impact successes—companies worth more than £100 million with a positive benefit for millions of people.”
Melanie Hayes, Managing Partner of Bethnal Green Ventures, underscores the belief that companies at the forefront of the FTSE and Nasdaq in the next 10 to 20 years will be those demonstrating positive social and environmental impact alongside financial success. She states, “It’s our job to find and support those companies when they’re just starting out.”
Ken Cooper, Managing Director, Venture Solutions at the British Business Bank, highlights the significance of the British Business Bank’s Enterprise Capital Funds program in facilitating effective venture capital provision in the UK. He notes their commitment to BGV as a new funding option for pre-seed and seed stage technology businesses addressing pressing social and environmental issues.
Rana Modarres, Impact Director at M&G Catalyst, expresses excitement about supporting BGV’s second fund, stating that their investment will help finance at least 50 female entrepreneurs in the UK. Josh Smith, Venture Investment Manager at Big Society Capital, commends BGV’s role as industry leaders in supporting tech startups addressing societal challenges and looks forward to continuing the partnership to foster best practices in impact ventures.