Volution launches $100m UK fund with SBI Investment as Co-GP
Volution has launched a new $100m fund to back the next generation of high-growth FinTech, AI and SaaS businesses tackling productivity challenges in capital markets and enterprise.
The fund has been launched in partnership with leading Japanese venture capital investors, SBI Investment through a Co-GP arrangement that leverages the strengths of both managers. This is Volution’s second dedicated fund and following the success of the first, a significant number of Volution’s existing LPs have recommitted to the new fund.
The UK technology sector faces significant funding challenges beyond early-stage investment. In 2024, funding at Series A dropped by 44% compared to the prior year. More worryingly, Series A – Series B conversion rates have dropped by over 50% in the last five years.
Through its new fund, Volution aims to bridge this gap by backing businesses that have already established strong revenue streams but require additional capital to expand. The UK has been actively seeking collaborative engagement with Japanese investors at many levels, and this fund creates an opportunity to lead the way.
Volution has a strong track record of supporting high-growth companies such as Signal AI, Flagstone and Cognism. Its first fund has so far achieved 300% average revenue growth, delivering three exits, and Volution’s portfolio includes one unicorn, Zopa Bank. The new fund has already begun deployment, with initial investments in one FinTech and one AI business.
Tomoyuki Nii, Director, Executive Officer (Overseas Investment) SBI Investment Co., Ltd said: “The UK is a global leader in FinTech and AI, with world-class universities, a strong regulatory environment and a thriving entrepreneurial ecosystem. These strengths make it an attractive destination for investment. Our cornerstone commitment to Volution comes at a time when Japan and the UK government are strengthening economic ties to drive growth across both markets. Building on the success of Volution’s first fund, it will provide a new funding option for fast-growing UK businesses looking to scale.”
Beyond financial returns, Volution is pioneering an ESG-focused initiative designed to encourage responsible and sustainable growth across its portfolio. Its Carbon Carry initiative incentivises founders to adopt best practices across ESG. Recognising the high computing resource demands of AI-driven companies, Volution reinvests a portion of its profits into carbon offset initiatives to mitigate the environmental impact of its portfolio companies.
