The UK government has reinforced its commitment to deep technology innovation after the British Business Bank announced a £50 million cornerstone investment into IQ Capital’s latest fund. The commitment to IQ Capital Fund V is designed to accelerate the growth of British deeptech companies operating at the forefront of artificial intelligence, quantum computing, and synthetic biology.
Strengthening the UK’s Deeptech Ecosystem
Founded in 2005 and headquartered in Cambridge and London, IQ Capital has become one of the UK’s most established deeptech venture firms. Over the past two decades, it has backed more than 250 founders, supporting companies from seed stage through to scale and exit. Fund V will continue that strategy, targeting five core themes: AI and automation, computing and semiconductors, health and bio, advanced engineering and energy, and security and resilience.
The British Business Bank’s role as a cornerstone investor is intended to act as a catalyst for further private capital. By anchoring the fund at an early stage, the Bank helps accelerate fundraising momentum while signalling long-term confidence in the UK’s deeptech sector.
A Long-Term Partnership Model
The investment extends a relationship between the British Business Bank and IQ Capital that spans more than 20 years. According to Christine Hockley, Managing Director and Co-Head of Funds at the Bank, that continuity reflects the effectiveness of patient, long-term capital in building sustainable venture firms.
The Bank’s early backing of IQ Capital’s first fund helped the firm grow into a £1 billion assets-under-management platform, demonstrating how government-backed commitments can nurture venture managers that go on to compete globally.
Global Exits and Strategic Co-Investments
IQ Capital’s portfolio has already produced several high-profile exits, with companies acquired by global technology groups including Apple, Meta, and Google. The British Business Bank has also co-invested directly alongside IQ Capital in companies such as Thought Machine, Paragraf, and CyberSmart, reinforcing its hands-on role in scaling strategic technologies.
Max Bautin, Managing Partner at IQ Capital, said the renewed backing would allow the firm to support a new generation of founders building globally relevant companies from the UK.
Positioning the UK for Global Competition
As international competition in advanced technologies intensifies, the government’s approach signals a clear policy direction. Rather than relying solely on private markets, the UK is using institutions like the British Business Bank to anchor capital in strategically important sectors.
The £50 million commitment to IQ Capital Fund V highlights the government’s ambition to ensure that breakthroughs in AI, quantum computing, and synthetic biology are not only developed in Britain, but also scaled into global leaders from the UK.
