British Business Bank programme: British Patient Capital, Enterprise Capital Funds
IQ Capital is a Cambridge-based venture capital firm that invests in UK ‘deeptech’ across sectors including machine learning, AI, engineering and materials, and data-focused propositions based on disruptive algorithms.
All the firm’s portfolio companies are potentially capable of dominating their respective markets on a global scale. The team typically invest at seed and series A stage, with significant capital reserved to scale portfolio companies through their growth stages. Initial investments typically range from £0.3m to £5m, with capacity to invest up to £10m per company over its life. IQ Capital’s current portfolio includes leading deeptech companies such as Speechmatics, Privitar, Thought Machine, Audio Analytic, Oxford Space Systems, Fluidic Analytics, Divido, Senseye and Spectral Edge.
The IQ Capital team has achieved over 20 exits to date including trade sales to Oracle, Google, Apple and Huawei and several IPOs. IQ Capital has led 22 deep-tech investments over the last three years and expects to invest in 10-15 new companies per annum.
A long standing partnership
In June 2018, British Business Investments, the commercial arm of The British Business Bank, committed £31.15m to the £92m first close of IQ Capital’s £125m Fund III, aimed at developing UK early stage deep-tech companies. The fund, will invest at Seed and Series A stages into UK deep-tech companies with transformational deep-tech, AI or disruptive algorithms at their core, and led by visionary founders.
IQCP III was being supported by the Bank’s commercial arm, British Business Investments, through its VC Catalyst programme. This programme has now been transferred to British Patient Capital, which aims to support up to £7.5bn of investment for UK growth businesses.
The British Business Bank backed both of IQ Capital’s previous funds, IQ Capital Funds (IQCF) I and II, under its Enterprise Capital Funds programme.