Elbow Beach launches new Climate Impact Fund with £63M

Elbow Beach, one of the UK’s most active specialist climate impact seed investors, has achieved the first close of its second fund at £63M. £50M was supplied by the British Business Bank through its Enterprise Capital Funds programme, and £40M is immediately deployable capital.

The fund’s overarching objective is to back technologies that will make a meaningful impact by solving big problems, enabling industries to become more efficient and cost-effective while transitioning to low carbon operations. Its strategy includes investment in automation and AI, carbon capture, electrification, and low-carbon materials.

Elbow Beach specialises in backing technologies that address some of the world's most pressing challenges, focusing on innovation that solves global issues. They are particularly concentrated on supporting industries related to environmental sustainability, such as reducing carbon emissions and transitioning to clean energy. Their portfolio emphasizes commercializing British innovations that drive large-scale improvements in various sectors, including battery technology and electric vehicles. They aim to deliver both financial returns and a positive environmental impact.

“Elbow Beach’s new fund is targeting the intersection of efficiency gain and climate impact,” said Jon Pollock, Elbow Beach CEO and Managing Partner.

“Growth is what brings financial returns and impact together. The fund’s strategy is to help match technology against big customer problems and steer companies towards their end markets. We’re looking at investments including technology that halves energy use for household products like vacuums and dishwashers, and improves crop yields through robotics and AI,” continued Mr Pollock.

“The UK is second only to the US in total number of climate technology startups, but British businesses attract less than half the funding of their American counterparts. Elbow Beach is on a mission to plug that equity gap and ensure Britain remains a global leader in climatetechnology innovation. Being green isn’t enough in isolation - technology will only be adopted if it makes commercial sense. We’re going to help nurture the next generation of founders who are driving real transformation and who have the potential to provide customers with better, more cost-effective solutions at scale. The backing from the British Business Bank is a real vote of confidence in our mission and in Britain’s entrepreneurs."