Volution launches $100 million fund with SBI Investment

Volution, a UK-based venture capital firm, has launched a new $100 million fund in partnership with Japan's SBI Investment to address a persistent funding gap for UK tech companies seeking growth beyond the early stages. The initiative targets FinTech, AI, and SaaS businesses with established revenue streams that need capital to expand, especially as Series A funding in the UK dropped by 44% in 2024 and Series A to B conversion rates have declined by over 50% in five years. Volution’s strategy seeks to support companies that have proven product-market fit, solid go-to-market strategies, and at least £5 million in annual recurring revenue, aiming to propel them to their next stage of growth. This follows the success of Volution’s first fund, which delivered three exits and boasts a 300% average revenue growth across its portfolio, including unicorn Zopa Bank. The fund’s launch comes amid broader efforts by the UK to strengthen economic ties with Japan and address structural imbalances in tech funding, where the focus has long been on early-stage investments. Volution has already begun deploying the new fund, with initial investments in FinTech and AI businesses.