TL;DR:
- Episode 1, a London-based VC firm, has successfully closed its third fund at £76 million.
- The fund will primarily target early-stage startups in AI, TechBio, healthtech, and more.
- Episode 1 plans to make 10 to 15 investments annually, with a focus on the UK but open to global opportunities.
- Investment ticket sizes will range from £250,000 to £3 million, covering various tech sectors.
- The firm boasts a track record of backing 69 startups, with 73% of them going on to raise Series A funding.
- Key LPs for the fund include British Patient Capital, the National Security Strategic Investment Fund, and Molten Ventures, alongside former or current founders.
Main AI News:
In the dynamic world of venture capital, London-based Episode 1 has successfully closed its third fund, amassing an impressive £76 million. Specializing in early-stage investments, Episode 1 has solidified its position as a key player in the AI, TechBio, and healthtech startup landscape.
This new financial vehicle enables Episode 1 to execute 10 to 15 pre-seed and seed-stage investments annually, primarily in the United Kingdom. However, the firm is not limited by borders and remains open to promising startups from the United States and Continental Europe.
The investment range for Episode 1’s third fund spans from £250,000 to £3 million, targeting a diverse portfolio that includes AI, TechBio, open-source, software infrastructure, healthtech, and marketplaces startups. With over a decade of experience, Episode 1 has already backed 69 startups, such as Carwow, Huboo, CloudNC, Raft, Robin AI, Fatmap, and Omnipresent.
Notably, 73 percent of their portfolio companies from the previous fund successfully advanced to raise a Series A round, showcasing a remarkable 3x higher pre-seed and seed graduation rate compared to industry norms.
Hector Mason, a General Partner at Episode 1, commented on the milestone, stating, “This new fund, our largest to date, is a testament to the dedication, creativity, and vision of our portfolio founders, who are driving some of Europe’s fastest-growing companies. Their achievements have propelled our fund’s growth and made this fund possible. As a team, we are always evolving. This fund empowers us to bolster our team and invest in the next generation of visionary founders.“
The fundraising journey for Episode 1 Season 3 received significant support from influential entities, including British Patient Capital and the National Security Strategic Investment Fund, contributing £20 million as a cornerstone commitment. Notably, Molten Ventures also joined the ranks of backers.
Moreover, over one-third of the new fund’s Limited Partners (LPs) are former or current founders, with 21 founders previously supported by Episode 1. Prominent figures among the LPs include Alex Chesterman, founder of Zoopla and Cazoo, Aidan Corbett, founder of Wayflyer, Aron Gelbard, founder of Bloom & Wild, and Alex MacDonald, founder of Velocity Black and Sequel.
Conclusion:
Episode 1’s successful fundraising for its third fund reflects the growing confidence in early-stage tech startups, particularly in AI, TechBio, and healthtech. With substantial financial backing and a history of supporting successful ventures, Episode 1 is poised to play a significant role in nurturing the next generation of innovative founders and driving technological advancements in the European market.
