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M&G, Bethnal Green Ventures
M&G Catalyst team said this week that it has invested in a new fund from Bethnal Green Ventures (BGV), a UK-based venture capital firm focused on investing in ‘Tech for Good’.

Bethnal Green Ventures announced the £33 million ($42 million) first close of the new fund, which is set to continue investing in technology for good. To date, a total of £33 million has been committed to the fund by investors including the British Business Bank, through its Enterprise Capital Funds programme, M&G Catalyst, Big Society Capital and Peter Bristot, managing director of 22 Ventures. 

M&G’s investment will facilitate capital to finance at least 50 female entrepreneurs in the UK, addressing inequality and investing in impactful UK businesses, the firm said in a statement.

BGV plans to use the capital to back one hundred new ventures over the next four years through their Tech for Good Programme. Applications are now open. Each venture selected for the programme will receive a £60,000 investment for 7 per cent equity. BGV will then make follow-on investments into the most promising ventures that complete the programme. 

BGV said it has backed 177 ventures through its Tech for Good Programme and helped create the tech for good movement in the UK through a series of ‘firsts’ including becoming the first UK VC firm to certify as a B Corp in 2015. 

BGV’s portfolio of companies has made a positive impact on society and the environment, demonstrating the incredible potential of technology to drive positive change as well as deliver returns to investors, the firm continued. Successful exits include science collaboration platform Overleaf and ethical smartphone company Fairphone. Existing portfolio companies from previous funds include LettUs Grow, a Bristol-based B Corp delivering patent-protected aeroponic technology to boost the productivity and sustainability of commercial greenhouses and indoor farms. Their technology offers significantly lower water and energy use than existing indoor farming methods. 

This latest fund, the largest in BGV's history, will enable the firm to make more significant follow-on investments into portfolio companies at pre-seed and seed stage. While impact investing has grown considerably over the past decade, there is still a funding gap for startups at this stage, the firm added. 

BGV is inviting founders to apply for funding. The deadline for applications for their Spring 2024 Programme is 7 January 2024. 

“The UK is a rich source of technologies and talent that can meet the demands of emerging and underserved markets, by using tech for good to accelerate solutions for complex social and environmental challenges,” Rana Modarres, impact director at M&G Catalyst, said. 

“Our investment will help to finance at least 50 female entrepreneurs in the UK – we are excited to support BGV in their second fund as they continue to invest in diverse founders using technology to create positive impact at scale,” Modarres added.