Elbow Beach Backs Britain’s Entrepreneurs with Launch of New Up To £80M Climate Impact Fund
Elbow Beach Backs Britain’s Entrepreneurs with Launch of New Up To £80M Climate Impact Fund Cornerstoned by British Business Bank
• £63m committed to date including up to £50m from British Business Bank
• Strategy to back startups across the UK pioneering technology solutions to big industry
problems
• Fund aims to back up to 36 startups over 4 years
• Second Elbow Beach fund follows success of first £20m fund
-
London, 21 March 2025 – Elbow Beach, one of the UK’s most active specialist climate impact seed investors, today announces the launch and first close of its second fund. The targeted £80M Climate Impact Fund 2 has already secured commitments for £63M of capital, including up to £50M from the British Business Bank through its Enterprise Capital Funds programme.
With £40M of immediately deployable capital, Elbow Beach has activated the fund which aims to back up to 36 early-stage British startups over the next 4 years, accelerating the scale-up, development, and export potential of some of the nation’s best early-stage technologies.
The fund’s overarching objective is to back technologies that will make a meaningful impact by solving big problems, enabling industries to become more efficient and cost-effective while transitioning to low-carbon operations. Its strategy includes investment in automation and AI, carbon capture, electrification, and low-carbon materials.
Backing British Technologies
“Elbow Beach’s new fund is targeting the intersection of efficiency gain and climate impact,” said Jon Pollock, Elbow Beach CEO and Managing Partner. “Growth is what brings financial returns and impact together. The fund’s strategy is to help match technology against big customer problems and steer companies towards their end markets. We’re looking at investments including technology that halves energy use for household products like vacuums and dishwashers, and improves crop yields through robotics and AI,” continued Mr Pollock.
“The UK is second only to the US in total number of climate technology startups, but British businesses attract less than half the funding of their American counterparts. Elbow Beach is on a mission to plug that equity gap and ensure Britain remains a global leader in climate technology innovation. Being green isn’t enough in isolation—technology will only be adopted if it makes commercial sense. We’re going to help nurture the next generation of founders who are driving real transformation and who have the potential to provide customers with better, more cost-effective solutions at scale.
The backing from the British Business Bank is a real vote of confidence in our mission and in Britain’s entrepreneurs. We’re really looking forward to working with their team,” added Mr Pollock.
Track Record
Elbow Beach has been supporting early-stage technology companies from pre-seed through to Series A and scale-up since 2021, applying models which are specifically designed to help start-ups progress and unlock their value potential. Its first £20M fund backed companies including:
• Munro Vehicles – the Scottish-based manufacturer of an all-electric utility vehicle for use in heavy industry
• Anaphite – the Bristol-based chemical engineering firm that enables EV batteries to be made using less energy
• WASE – Bristol-based startup that turns wastewater into energy
Christine Hockley, Managing Director and Co-Head of Funds, British Business Bank, said:
“We are pleased to make this commitment to Elbow Beach as they back startups pioneering technology solutions to global climate challenges. Our Enterprise Capital Funds programme is key in helping to develop and maintain effective venture capital provision in the UK, lowering the barriers to entry for emerging fund managers. Our commitment to Elbow Beach builds on the programme’s track record and will help early-stage founders in the climate impact sector across the UK to build their businesses.”
