Innovative £125m IQ Capital Fund III established

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We acted for IQ Capital Partners LLP in establishing IQ Capital Fund III, a venture capital fund with an innovative multi-fund structure, which will invest in Deep Tech.

IQ Capital Partners has launched their third venture capital fund, the IQ Capital Fund III (IQCFIII), an up to £125m fund with a successful first close of £92m. The British Business Bank via British Business Investments Limited is a cornerstone investor in the fund under its Catalyst programme. IQCFIII’s unique multi-fund structure, is the first of its kind, comprising two limited partnerships interconnected with a transparent nominee fund to offer equal but tailored investment opportunities for institutional and individual investors. 

Mills & Reeve have worked with IQ Capital Partners for over 10 years, having previously assisted in establishing the landmark £25m IQ Capital Fund I (UK’s first ‘Enterprise Capital Fund’) and the £50m IQ Capital Fund II for the fund manager. 

IQC is well known for its commitment to working with deep tech companies looking to scale their organisation or exit with a significant financial return, and has already achieved significant returns for its investors via its first two funds. 

Max Bautin from IQ Capital Partners said: ““When we launched our first fund over 10 years ago, we had the ambition to become the pre-eminent fund for deep tech 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 businesses, so our latest fund will see even bigger successes.” 

Dona Ardeman, Principal Associate for Mills & Reeve said: “It has been a real pleasure working with IQC over the years, and watching them grow from strength to strength as they created the first ever ECF, successfully raised a second one (despite the banking crisis), and have had phenomenal success with both. 

“We are proud to have assisted IQ in creating a truly innovative multi-fund which has taken some considerable brain power to develop, and which is uniquely attractive for institutions, organisations and individuals alike.” 

The fund will be used to invest in Deep Tech companies, organisations that deliver solutions in a wide range of fields, using techniques including big data, AI or deep learning, with a more innovative approach than traditional tech companies. Kerry Baldwin from IQ Capital Partners said: “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.” 

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