Molten Ventures Raises €203 Million for UK and European Tech Growth
Molten Ventures has raised €203 million (£175 million) in the first close of its new Growth Fund to invest in high-growth technology companies across the UK and Europe. The British Business Bank has committed €87 million (£75 million) as the fund’s cornerstone investor, while Molten Ventures has contributed the remaining €116 million (£100 million).
The venture capital firm plans to raise additional capital and grow the fund to a target of €407 million (£350 million). It will focus on companies that have moved beyond the early-stage phase and need larger rounds to scale internationally.
Series B+ Funding Takes Centre Stage
The Growth Fund continues Molten Ventures’ existing strategy of investing at Series B and beyond, when startups typically begin moving from growth into larger-scale operations.
Molten said it has completed more than 40 growth-stage investments and deployed more than £700 million in this area over the past decade. The new fund gives it a dedicated pool of institutional capital to increase the number and size of these investments.
The strategy targets companies with global ambitions across Space, artificial intelligence, fintech, quantum computing, deeptech and hardware. Rather than focusing solely on early-stage startups, Molten will use the fund to take larger positions in businesses that have already demonstrated potential and are preparing for their next stage of expansion.
British Business Bank Backs UK Scale-Ups
The British Business Bank’s £75 million commitment is part of its broader effort to increase the supply of growth-stage capital available to UK technology companies.
The bank has been an investor in Molten’s listed platform since 2018 and has previously co-invested with the firm in companies including satellite technology company SatVu, Thought Machine, Paragraf and IMU Biosciences.
For Molten, the new fund also expands its ability to manage capital from institutional investors alongside its publicly listed investment platform. The firm sees this structure as a way to provide more funding to companies that have progressed beyond the early venture stages but still require substantial capital to compete globally.
Focus on AI, Space and DeepTech
The fund’s sector focus covers several areas attracting increasing investment across European technology markets. AI, quantum computing and deeptech companies often require significant capital as they move from research and development into commercial deployment, while space and hardware businesses face similarly high costs as they scale production and infrastructure.
Molten expects the fund to support companies where it can build meaningful ownership positions while providing capital for international expansion.
The firm has already invested heavily across European technology. Since its 2016 initial public offering, Molten says it has deployed more than £1 billion and realised more than £800 million in proceeds from investments. Across the group, it manages around £2 billion in assets.
A Push for More Late-Stage European Capital
The new fund arrives as European investors and public institutions increase their focus on the shortage of capital available to technology companies at the growth stage.
While European startups have access to substantial seed and early-stage funding, companies seeking larger Series B and later rounds can face a narrower pool of investors. Molten is positioning the Growth Fund to address that gap by providing dedicated capital to businesses that have already moved into commercial growth.
The fund also forms part of Molten’s wider strategy to increase the amount of third-party capital it manages. Alongside its listed investment vehicle and other strategies, including its secondaries business, the company expects the additional capital to expand its ability to back high-conviction technology companies.
With the first €203 million secured and a €407 million target ahead, Molten Ventures is now looking to bring in further institutional investors while preparing to deploy capital into the next generation of UK and European technology scale-ups.
