Cambridge Innovation Capital Launches £100M Fund to Boost UK Deep Tech and Life Sciences

Cambridge Innovation Capital (CIC), a venture capital firm investing in Cambridge-based startups, has launched a new £100 million ($126 million) ‘Opportunity Fund’ aimed at supporting later-stage deep tech and life sciences companies. The fund, backed by Aviva Investors and British Patient Capital, seeks to bridge the UK’s long-standing funding gap for growing startups, which often migrate to the US for better investment opportunities.

Addressing the UK’s Growth-Stage Funding Gap

For years, the UK has struggled to provide sufficient funding for later-stage startups compared to the US. According to the European Investment Fund, the US has at least seven times more large VC funds than Europe. CIC Managing Partner Andrew Williamson highlighted this challenge, explaining that while the firm has traditionally focused on early-stage investments, many of its portfolio companies are now reaching maturity and require additional capital to scale.

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“Historically, when our companies reached the Series C stage, we didn’t have enough capital in our core funds to continue investing,” Williamson said. “We would offer co-investment opportunities to our limited partners (LPs), but many financial institutions aren’t structured to make direct investments. This fund provides a solution.”

The UK government has been pushing to close this investment gap, with the British Business Bank playing a key role in funding scale-up capital. Aviva, one of the fund’s backers, is also a signatory of the Mansion House Compact, an initiative that encourages pension funds to invest in growth-focused businesses.

Early Investments and Ambitions

CIC has already made two investments from the new fund:

• Pragmatic Semiconductor, a chip design and manufacturing company, has raised $389.3 million to date.
• Riverlane, a quantum computing error correction firm, has raised $120.7 million.

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The Opportunity Fund will invest up to £20 million ($25.2 million) per company, ensuring that high-potential startups have the resources to scale without seeking funding overseas.

Supporting the UK’s AI and Tech Ambitions

This funding initiative aligns with the UK government’s recent AI Action Plan, a strategy to position the country as a leader in artificial intelligence and advanced technology. The plan includes a pledge to build Europe’s version of Silicon Valley, strengthening tech ecosystems around Oxford, Cambridge, and London—known as the Golden Triangle. A package worth £14 billion will support this vision, improving links between top universities and investing in transportation infrastructure.

Cambridge has already produced several globally recognized companies, including ARM Holdings, Abcam, Darktrace, and Bicycle Therapeutics. With CIC’s latest fund, more startups in the region may soon join that list instead of seeking capital abroad.

Notable Exits from CIC’s Portfolio

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CIC has a strong track record of successful investments, with past exits including:

• Gyroscope Therapeutics, acquired by Novartis for $1.5 billion
• PetMedix, sold to Zoetis for $285 million
• Inivata, a liquid biopsy platform sold to NeoGenomics for $390 million
• Audio Analytic, a sound recognition technology company acquired by an undisclosed buyer

By addressing the UK’s late-stage funding gap, CIC’s new Opportunity Fund aims to retain high-growth tech companies within the country and strengthen the nation’s position in the global tech and life sciences sectors.

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Shubham Kansal

Shubham Kansal is a tech-freak self-motivated professional who thrives on innovation and overcoming challenges. He is working on Tech Zimo for the last 4 years and went through writing for a lot of big media houses. Writing is her all-time favorite job. Know more about him on facebook,