Octopus Ventures closes £20M pre-seed fund, doubling its predecessor
What's the deal? Octopus Ventures has reached a first close on First Cheque II, a £20 million pre-seed fund backing early-stage founders across the UK and Europe. The firm, part of Octopus GroupDealroom has a profile for this one. Try Dealroom →, announced the close on November 5, 2026. The fund is already investing.
How big? The vehicle targets more than twice the £10 million raised by its predecessor, First Cheque I, and plans to back over 80 founders. It invests in startups spanning AI, biotech and healthcare, deeptech, fintech, robotics, and technologies reshaping the physical world.
What's the endgame? As part of the first close, First Cheque II acquired the fund and portfolio built by OnstageDealroom has a profile for this one. Try Dealroom →, an early-stage platform founded in 2020 by Taos Edmondson and Hector Mason. That brings six companies into the fund from day one, including Serova Bio, which uses AI to develop personalised cancer vaccines. Edmondson joins Octopus Ventures as a venture partner.
The track record. Octopus says First Cheque I backed more than 80 companies and is a top-quartile global performer despite being four years into its lifecycle. Its portfolio includes OLIXDealroom has a profile for this one. Try Dealroom →, now valued above $3 billion, and AI biology company Prima MenteDealroom has a profile for this one. Try Dealroom →, which secured investment from Nvidia.
The signal: The close marks a substantial commitment to the pre-seed stage in a selective market. European venture capital has recovered in aggregate, but unevenly — Q3 2026 reporting found seed funding flat year on year and early-stage investment cooling, while smaller fund managers continued to face fundraising challenges. New pre-seed vehicles keep emerging, from Evertrue CapitalDealroom has a profile for this one. Try Dealroom →'s $17 million debut to Connect VenturesDealroom has a profile for this one. Try Dealroom →' fifth fund, though the fund's targets are not evidence that the wider squeeze has eased.
Read more: startupsmagazine.co.uk
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