Ada Ventures has reached a £36 million first close of its second fund.
The early-stage venture capital firm says its scout network uncovers the hidden talent that will build the next generation of global companies and help solve society’s biggest problems.
Ada’s first fund invested in 28 companies, including Huboo, Organise, MOONHUB, SideQuest and Spill. Huboo in particular has grown to scale at impressive speed, most recently raising a £60m Series B investment.
Ada’s Fund I portfolio has raised an aggregate of £100m in additional investment from firms including Mubadala, GV and Index Ventures, while boasting 55% female founders and 30% ethnic minority founders.
There are 100 Ada Scouts – most are active within under-represented communities – who are sourcing opportunities and identifying visionary founders that need access to capital. It says this approach has successfully removed the need for a ‘warm introduction’, through previously established connections, which has been a hurdle for under-represented founders in accessing funding.
Should Ada invest in a company introduced by a scout, the scout is compensated with both an upfront fee and a share of carried interest that the startup generates for the fund.
In its first fund, nine of the 28 investments came through this scout network. In recent months the reach of the Ada Scouts has been growing with a focus on the LGBTQ+ community, disabled entrepreneurs and regions outside London.
Ada Ventures Fund II will focus on funding early-stage entrepreneurs who are solving some of society’s biggest problems, with a special focus on the climate, healthcare and ageing, and economic empowerment.
“Investors have seen how we source deals and how we find breakthrough companies making a positive societal impact,” said Ada founding partner Check Warner (pictured, right). “They can see our approach works.
“Not only have we opened opportunities for extraordinary founders, but we have also shown that a more diverse deal flow leads to exceptional returns.”
The investors in Ada Venture Fund II include a cornerstone commitment from the British Business Bank through its Enterprise Capital Funds programme; Plexo Capital; University of Edinburgh; and a raft of successful entrepreneurs and investors including Taavet+Sten and the co-founders of Supercell.
Ada Ventures also launched Ada’s Angels in October 2020, which was a project that sought to bring more diverse people into angel investing. The programme identified five individuals from the Ada Scout network with direct experience in under-represented communities, who were given £50,000 to make five investments of £10,000.
Since launch, the cohort has made 22 angel investments, six of which then raised funding from Ada Ventures. All six of these companies are founded by entrepreneurs from backgrounds that are currently underrepresented in tech and VC.
Ada’s Angels second cohort will be more than double the size of the first and select angels from across the whole of the UK.
“Ada Ventures takes its name – and inspiration – from the mathematician Ada Lovelace, who worked on the first computer, but wasn’t recognised for her contributions until 100 years later,” explained Warner.
“Like Ada, we are looking for bright minds, who can bring their visionary thinking to solve the biggest problems of our age.”
Matt Penneycard, founding partner at Ada Ventures added, “We have intentionally built Ada Ventures so that it is accessible to everyone, and anyone – wherever they are – can be involved in the process of venture capital without needing to rely on an existing network of contacts.
“Everyone and their ideas are welcomed at Ada Ventures. This approach has proven to be beneficial for the companies in our portfolio, and for investors.”