British Business Bank Backs Next Generation of Venture Capital Funds with £400m Initiative

The British Business Bank has announced a £7.6 million cornerstone commitment to Evertrue Capital, marking the first publicly announced investment under the Microfunds pillar of its £400 million Investor Pathways Capital initiative.

The announcement represents more than another investment in a venture capital fund. It forms part of a broader effort to address longstanding barriers within the UK investment industry, particularly the difficulties faced by talented emerging fund managers seeking institutional backing.

For British startups, the longer-term implications could be significant. A wider range of fund managers, investment strategies and networks has the potential to create additional routes to capital for businesses at the earliest stages of development.

Opening Up the Venture Capital Market

The £400 million Investor Pathways Capital initiative was established to support the next generation of venture capital investors.

Traditionally, launching a venture capital fund has required access to substantial institutional investment, established professional networks and a demonstrable investment track record. For first-time fund managers, these requirements can create a difficult cycle: securing capital often depends on having an established track record, while building that track record requires access to capital.

The British Business Bank aims to address this challenge by acting as a cornerstone investor in emerging funds, helping managers attract additional private investment and establish sustainable venture capital businesses.

The initiative includes a Microfunds programme supporting funds typically ranging from £5 million to £20 million, alongside larger talent-focused funds and other investment strategies.

In June 2026, the Bank announced commitments of up to £90 million across ten emerging microfund managers, including Evertrue Capital.

Evertrue Capital Secures Institutional Backing

Founded by Yvonne Bajela, a former Partner at Phoenix Court, Evertrue Capital focuses on identifying promising technology businesses at the pre-seed and seed stages.

The fund has secured backing from several institutional investors, including the British Business Bank, Phoenix Court's Basecamp vehicle, Better Society Capital and Bootstrap 4F.

Evertrue will invest across the UK and Europe, with at least 65% of its investment capital allocated to UK businesses.

Its investment interests include fintech, artificial intelligence and other emerging technologies, with a particular emphasis on founders demonstrating distinctive market insight and the potential to build internationally competitive companies.

The fund has already invested in seven businesses, including Zaro, Revion, Poindexter Labs and Zuba.

For the British Business Bank, the investment demonstrates how institutional backing can help emerging managers establish themselves while directing capital towards innovative early-stage companies.

Why This Matters for UK Startups

Although the initiative directly supports venture capital fund managers rather than individual startups, its potential impact extends throughout the wider investment ecosystem.

Early-stage businesses frequently face challenges securing their first significant investment, particularly when they operate in emerging sectors, have limited trading histories or fall outside established investor networks.

Supporting new venture capital funds could help broaden the range of investors actively seeking opportunities in these areas.

It may also encourage greater diversity in investment strategies, with emerging fund managers bringing different professional experiences, sector expertise and approaches to identifying promising businesses.

For founders, this could eventually translate into a wider choice of potential funding partners.

However, the availability of additional venture capital does not guarantee easier fundraising. Investment decisions will continue to depend on commercial potential, the strength of the founding team, market opportunity and the credibility of a company's growth plans.

A Wider Shift in Early-Stage Investment

The Evertrue announcement comes as the British Business Bank continues to expand its role in supporting the UK's venture capital market.

Its approach increasingly involves investing through specialist funds and private-sector investment partners, rather than relying solely on direct funding programmes.

By committing capital to emerging managers, the Bank aims to encourage additional private investment while developing a stronger pipeline of venture capital firms capable of supporting British businesses over the longer term.

This approach also recognises that improving access to finance is not simply a question of increasing the amount of capital available.

It is equally important to consider who makes investment decisions, which businesses receive attention and whether promising founders can reach investors with the expertise and appetite to support them.

What Happens Next?

The £400 million Investor Pathways Capital initiative remains at an early stage, and its longer-term impact will depend on how successfully supported funds attract private capital, identify investment opportunities and build sustainable portfolios.

Nevertheless, the commitment to Evertrue Capital provides an encouraging example of institutional investment being used to strengthen the foundations of the UK's early-stage funding market.

For founders seeking investment, the development is worth watching.

A more varied and competitive venture capital landscape could create additional opportunities for businesses that might previously have struggled to attract attention from established investment firms.

And for the wider UK economy, supporting the investors of tomorrow may prove an important part of ensuring that the country's most promising businesses can access the capital they need to grow.