Elbow Beach Launches £80M Climate Fund with Major UK Support
Elbow Beach secures £63 million for its second climate-focused investment fund, with £50 million committed by the British Business Bank.
Elena Whitmore 
Focused on Climate-Tech Startups in the UK
UK-based climate seed investor Elbow Beach has launched its second investment vehicle, the £80 million Climate Impact Fund 2, aimed at supporting emerging technologies addressing environmental and industrial challenges. With £63 million already committed, including a significant contribution of up to £50 million from the British Business Bank, the fund is set to deploy £40 million immediately into promising early-stage companies.
The fund plans to back up to 36 UK startups over a four-year period. Investments will focus on areas such as automation, AI, electrification, carbon capture, and low-carbon materials — all sectors viewed as critical for reducing industrial energy use and accelerating the transition to a low-carbon economy.
Targeting Scalable Technologies with Real-World Impact
According to Jon Pollock, CEO and Managing Partner at Elbow Beach, the fund will prioritize technologies that sit “at the intersection of efficiency gain and climate impact.” He emphasized that scalable growth is essential to deliver both measurable environmental benefits and financial returns.
Potential investments include innovations aimed at cutting household energy consumption by half — such as more efficient vacuum cleaners and dishwashers — as well as AI-powered tools for improving agricultural productivity. The goal is to fund startups whose technologies can be applied not only across the UK but also exported globally.
Building on a Track Record of Climate Investment
Founded in 2021, Elbow Beach previously raised a £20 million fund that supported startups including Munro Vehicles, a Scottish maker of electric utility vehicles; Anaphite, a Bristol-based company improving energy efficiency in EV battery production; and WASE, which transforms wastewater into energy. This earlier fund focused on pre-seed to Series A stage companies and emphasized early-stage strategic support to help founders realize their growth potential.
The new fund builds upon this model, aiming to deepen impact while extending the investor's reach across the UK’s climate innovation landscape.
British Business Bank Backing Signals Confidence
The involvement of the British Business Bank through its Enterprise Capital Funds programme adds institutional weight to the fund’s mission. Christine Hockley, Managing Director and Co-Head of Funds at the bank, commented, “We are pleased to make this commitment to Elbow Beach as they back startups pioneering technology solutions to global climate challenges.”
The programme is designed to lower the barriers for emerging fund managers and strengthen venture capital availability in developing sectors. With this backing, Elbow Beach positions itself to play a more prominent role in advancing the UK’s climate tech ecosystem.
