Araya Ventures Secures €22 Million for Super Angel Fund, Targeting 60 Startups

London-based Araya Ventures has announced the second close of its Araya Super Angel Fund, reaching €22 million, with a €6 million commitment from British Business Investments, a subsidiary of the British Business Bank. This contribution will allow British Business Investments to co-invest alongside the fund, supporting early-stage companies.

The community-driven fund is set to invest in up to 60 pre-Seed and Seed-stage startups over the next four years, focusing on businesses operating in Health, FinTech, Commerce, and the Future of Work. While its primary investment region is the United Kingdom, the fund has allocated 20% for global investments.

Rupa Popat, Founder & Managing Partner at Araya Ventures, emphasized that beyond capital, the fund aims to provide operational support and access to an extensive investor network. "This is Araya Ventures’ debut fund, and I’m incredibly proud of what we are able to offer both our investors and founders," she said. Having been both a founder and an investor, Popat noted that early-stage entrepreneurs require not only funding but also guidance and connections to scale their businesses effectively.

Araya Ventures’ Strategy and Market Position

Founded in 2022, Araya Ventures specializes in early-stage investments and has already backed nine startups, with more than half focused on artificial intelligence. The United Kingdom has proven to be a strong market for AI-driven innovation, with data indicating that the country is home to 1,800 VC-backed AI startups, including 20 AI unicorns. Additionally, the UK’s tech ecosystem has produced 171 unicorns to date, reaching a total market valuation of €1 trillion in 2024.

The latest investments made by Araya Ventures include Capably, Research Grid, and Cold AI. One of the fund’s portfolio founders acknowledged Araya's active involvement in their company’s growth by facilitating introductions to potential investors and customers and advising on scaling strategies.

Beyond its investments, Araya Ventures runs Araya Ventures Academy for Angels (AVA Angels), a platform designed to educate and support new angel investors. The fund’s backers include exited entrepreneurs, family offices, and an extensive network of industry professionals providing strategic growth opportunities across funding, customer acquisition, and talent sourcing.

British Business Investments’ Role in the Fund

British Business Investments’ €6 million commitment comes through its Regional Angels Programme, which aims to reduce regional imbalances in early-stage equity finance for smaller businesses across the UK. By co-investing with the Araya Super Angel Fund, the program intends to bridge the funding gap for high-growth companies outside traditional financial hubs.

Adam Kelly, Managing Director at British Business Investments, described the collaboration as an example of how structured angel investing can benefit emerging businesses. "The Super Angel Fund is a great example of leveraging angel expertise in a formal committed structure which works well for investee companies," he stated. He further noted that the Regional Angels Programme plays a vital role in ensuring that smaller businesses across the UK have better access to early-stage capital and expertise.

Diverse Investor Base and Experienced Leadership

The fund has attracted investment from a range of institutional and private investors, including Saarthi Capital, C-suite executives such as former Credit Suisse CEO Phil Cutts and former Browns CEO Holli Rogers, and notable entrepreneurs like Rachel Pendered and Dr. Raoul-Gabriel Urma. Additionally, VC professionals, including Niraj Pabari (Giano Capital) and Daljit Sandhu (former COO of Precede Capital Partners), have backed the initiative, along with family offices from the UK and the Middle East.

Rupa Popat, who has over 20 years of experience in entrepreneurship and investment banking, has built a track record as an angel investor, with several successful exits. In 2023, her portfolio companies received exit offers from Google Ventures and Unilever Ventures, further solidifying her expertise in identifying and nurturing high-potential startups.

With this latest funding round, Araya Ventures continues its mission to provide financial backing and strategic support to early-stage businesses, contributing to the growth of the UK’s startup ecosystem.