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IQ Capital launches GBP125m Fund III

IQ Capital, has held the first close of its GBP125 million third fund, IQ Capital Fund III, at GBP92 million.

The fund will invest at Seed and Series A stages into UK deeptech companies with transformational deep-tech, AI or disruptive algorithms at their core and led by visionary founders.
IQCF III builds on the successes of IQ’s existing funds, which included a ‘double dragon’ exit in May to Oracle (a deal that returned an entire fund twice over), enabling the first fund, IQCF1, to deliver a healthy 3.5x net return to its LPs. IQ Capital’s second fund has invested in 22 deep-tech start-ups over the last four years, leading investments into deeptech companies such as Privitar, Speechmatics and Fluidic Analytics.
Deeply embedded within Cambridge’s thriving technology ecosystem, IQ Capital celebrated its tenth anniversary last year and will continue investing in founders of deeptech companies looking to launch or to scale their businesses. The firm’s partners – Max Bautin, Ed Stacey and Kerry Baldwin – have worked together for over 12 years and achieved numerous strong exits to tech giants including Google, Apple, Oracle and Huawei and several high profile IPOs, including Autonomy.
Investors in the first close of IQCFIII include Family Offices, Wealth Managers, technology entrepreneurs and several CEOs that were previously backed by IQ Capital, alongside equity investment from British Business Investments, the commercial arm of the British Business Bank (the largest UK-based LP investing in UK Venture Capital).
Max Bautin, Partner at IQ Capital, says: “When we launched our first fund over 10 years ago, we had the ambition to become the pre-eminent fund for deeptech in the UK. Over the last few years, this sector has grown tremendously and produced a number of world-leading companies. We are seeing brilliant entrepreneurs bringing ever more experience and ambition to scale up their deeptech companies, so our latest fund will see even bigger successes.”
Ed Stacey, Partner at IQ Capital, says: “Deeptech is increasingly being appreciated by investors and corporates alike, for its massive potential to disrupt and reconfigure industries. As one of the first investors focused on UK deeptech, we are delighted with the growth of UK expertise and ambition in the sector, and we anticipate it will continue to strengthen. In particular, the development of the tech ecosystem in Cambridge is quite unique, and we are proud to be right at the heart of it.”
Kerry Baldwin, Partner at IQ Capital, says: “Beyond the cash injection, we are seen as true partners supporting entrepreneurs to scale their businesses. Trust with our founders is absolutely essential and we work closely together on all the challenges that arise with scaling globally – both technical and commercial challenges.”
IQCF III is a ten year fund with a five year investment period, with ability to invest up to GBP10m per portfolio company in order to scale an original tech innovation into global commercial success.

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