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VC firm Index Ventures raises £1.8 billion to back UK start-ups and unicorns like Revolut

VC firm Index Ventures raises £1.8 billion to back UK start-ups and unicorns like Revolut

Index Ventures plans to deploy a significant portion of the new funds in the UK, where the firm has already backed a large number of UK unicorns.

Index Ventures plans to deploy a significant portion of the new funds in the UK, where the firm has already backed a large number of UK unicorns.

Global venture capital firm Index Ventures has announced $2.3 billion (£1.8 billion) in new funding to support startups and growth companies in the UK and around the world.

The capital injection includes an $800 million (£625 million) venture capital fund and a $1.5 billion (£1.2 billion) growth fund. Index Ventures plans to deploy a significant portion of it in the UK, where it has already backed a large number of British unicorns.

UK Business Secretary Lord Livermore praised the investment, saying: “Boosting private investment in the UK economy is an urgent priority for our growth mission, so I very much welcome Index Ventures’ commitment to the UK and their vote of confidence in our VC sector.

“It is great to see private investment in the technologies of the future creating thousands of jobs that can benefit people across the UK,” he added.

Earlier yesterday, the Labour government announced that it would set up a national wealth fund with £7.3 billion of state money to stimulate investment in British growth industries.

Index Ventures has raised a total of $15 billion (£11.7 billion) since its founding in 1996 and has offices in San Francisco, London, New York and Tel Aviv. The firm supports companies from seed stage to IPO. UK startups it has previously backed include Deliveroo, Revolut and Bloom & Wild.

The VC firm is optimistic about the future of startups, believing that rapid advances in artificial intelligence (AI), a large talent pool, and proven hypergrowth strategies will create great opportunities.

“AI alone will revolutionize virtually every sector of the economy and open up entire industries for companies that have previously remained virtually untouched,” explains Shardul Shah, partner at Index Ventures. “Hundreds of thousands of people around the world have now worked in high-growth startups and can pass on these experiences to the next generation of companies.”

“We are excited by the unique opportunities presented by this historic moment and look forward to working with founders to solve the world’s toughest and most consequential problems,” Shah added.