• Cambridge Innovation Capital (CIC) launched a £100 million ($126 million) “Opportunity Fund” to support later-stage deep tech and life sciences companies.
  • The fund’s initial investments include Pragmatic Semiconductor, a chip designer that has raised $389.3 million, and Riverlane, a quantum computing error correction company with $120.7 million in funding.

Cambridge Innovation Capital (CIC) has launched a new £100 million ($126 million) “Opportunity Fund” to support later-stage deep tech and life sciences companies, addressing the long-standing funding gap in the U.K. startup ecosystem.

CIC, which exclusively invests in the Cambridge ecosystem, manages $757 million across more than 40 companies and has a close relationship with the University of Cambridge.

The fund, anchored by Aviva Investors and British Patient Capital, will provide up to £20 million ($25.2 million) per investment in later-stage funding rounds.

This initiative is aimed at preventing the exodus of high-growth startups to other markets, particularly the U.S., where significantly larger VC funds dominate.

The European Investment Fund notes that the U.S. has at least seven times more large-size VC funds than Europe. Two investments have already been made through the Opportunity Fund.

Pragmatic Semiconductor, a chip designer and manufacturer that has raised $389.3 million to date, and Riverlane, a quantum computing error correction company that has raised $120.7 million, are the fund’s initial beneficiaries.

The fund aligns with broader government efforts to strengthen the U.K.’s technology sector.

Last month, the government announced its “AI Action Plan” to bolster economic growth through AI, alongside a £14 billion investment package aimed at enhancing connections within the “Golden Triangle” of London, Oxford, and Cambridge.

Andrew Williamson, managing partner at CIC, highlighted that while CIC has traditionally focused on early-stage investments, many of its portfolio companies are now maturing into proven technologies.

The Opportunity Fund was created to ensure these companies receive continued backing.

CIC has previously facilitated major exits, including the sale of Gyroscope Therapeutics to Novartis for $1.5 billion and the $285 million acquisition of PetMedix by Zoetis.

Cambridge remains a key hub for innovation, producing notable companies like ARM Holdings, Abcam, Darktrace, and Bicycle Therapeutics.

Edited By Annette George