Fuel Ventures Launches $63.6M Early-Stage VC Fund

Fuel Ventures Launches New £45 Million Fund to Back UK Tech Startups

The name Paddle, a payments startup securing $93.3 million in funding, may be familiar. Similarly, Heroes, which garnered $65 million aiming to replicate the “Thrasio of Europe” model, has gained attention. However, the investment firm behind these ventures – Fuel Ventures – may be less widely recognized, at least for now.

This is poised to shift as Fuel Ventures publicly announces a new £45 million (approximately $63.6 million) venture capital fund specifically focused on early-stage companies. The firm intends to invest in 60 U.K.-based tech startups within the coming year.

Rapid Investment Pace

This represents a substantial rate of investment for an early-stage fund. Fuel’s founder and managing partner, Mark Pearson, expressed strong confidence in achieving this goal, positioning Fuel as a leading early-stage investor throughout the U.K.

Since its inception in 2015, Fuel Ventures has successfully raised £80 million in capital dedicated to seed and Series A funding rounds. The new fund will also target ventures at the pre-seed stage.

Portfolio Successes

Over the past year, Fuel reports that its portfolio companies have collectively secured over £180 million in subsequent funding. Key investments include:

• OnBuy (an e-commerce marketplace)
• Capdesk (an equity management platform)
• OutFund (an alternative finance provider)
• Heroes (a company focused on scaling Amazon businesses)
• Moot Group (an e-commerce business specializing in homeware and furnishings)

Mark Pearson, the founder and managing partner of Fuel Ventures, stated: “The U.K.’s technology ecosystem has demonstrably strengthened and matured over the last five years, becoming a model for many nations. Now is not a moment for complacency.

We are committed to investing in the future of U.K. technology and building upon the progress already made. This means providing crucial capital to innovative, forward-thinking entrepreneurs, even those with only an initial concept or a minimum viable product (MVP).”

Expanding Resources

Alongside the new £45 million fund, Fuel Ventures is also establishing a workspace in central London to support its portfolio companies.

Pearson, who previously gained experience at the startup MyVoucherCodes, shared his insights during a conversation. He explained: “Following a successful exit from MyVoucherCodes, which reached approximately £10 million in revenue, I became an active angel investor, including an investment in Paddle.

Upon selling my company, I decided to pursue this full-time. I observed a lack of investors with direct startup experience, a contrast to the U.S. market. Therefore, I adopted an entrepreneurial mindset, prioritizing a founder-friendly approach. This marked the beginning of Fuel Ventures five years ago.”

Bridging the Funding Gap

Pearson further elaborated: “A funding gap continues to exist between the seed and Series A stages. We have consistently focused on the seed stage, aiming to provide substantial checks that enable companies to attract top talent, scale their product development, and ultimately secure funding from institutional investors.

We offer hands-on support, actively collaborating with businesses to drive growth. Our network of investors and limited partners (LPs) largely consists of entrepreneurs themselves.”