Earlier this month news came through that Twin Path Ventures, the UK’s only dedicated pre-seed investor in AI-first startups had received financial support from British Business Investments.
Under the deal British Business Investments, committed to invest £10 million alongside Twin Path Ventures early-stage AI-focused investment fund and the fund’s existing angel and family office investors. The partnership will see British Business Investments contribute around £3 million every year over the next three years, "supporting Twin Path’s mission to drive innovation and growth in the UK’s AI sector".
What made this move standout was that clear emphasis on AI technology and how it can be fostered and grown in the UK. It comes as the need to invest in UK-based tech founders building and launching "innovative and novel AI powered solutions that solve big real world problems" becomes more and more apparent.
The world of AI is dominated at present by US firms such as Nvidia as well as Facebook-owner Meta, Alphabet, Amazon, Apple and Microsoft. China is also dominant via Alibaba, and the new kid on the block DeepSeek which claims to do everything the big US tech giants can do but at a much lower cost. The UK needs to use our undoubted and world-respected research and development, mathematical and science expertise to offer stronger competition.
We also need funding both from private and state backers. But it often feels that there is a reluctance to press the go button. Too often AI is seen in a negative light - the development of robotic soldiers, bioweapons, the concerns around the 'prying' into our personal lives and the impact on ordinary jobs. But we need to focus more on the undoubted positives AI can bring in all sectors of our economy and society such as education, freeing up routine tasks in the workplace and boosting productivity and the wonders it can do for health, transport and communications.
Some of the early beneficiaries from the Twin Path deal show that potential:
Sention - An East London based startup with a world-first innovation that combines advanced ultrasound technology and the latest in AI to offer manufacturers of batteries and fuel cells the ability to diagnose faults and accurately predict performance and future degradation rates at the design and production stage. The Bank’s investment has enabled Twin Path Ventures to lead a £3 million seed investment in Sention alongside co-investor VCs from Europe, USA and Singapore.
Amply Discovery - A Belfast-based next-generation drug discovery platform that combines the latest in machine learning and synthetic biology to mine vast biological datasets to discover novel drugs. A spin-out from Queen's University Belfast, Amply is tackling challenges such as cancer and multi-drug resistant infections.
Adam Kelly, Managing Director, British Business Investments, commented on the deal: “We are delighted to partner with Twin Path Ventures to champion the UK’s thriving AI ecosystem. This investment aligns with our commitment to supporting innovative early-stage businesses and driving economic growth across all regions of the UK. Twin Path’s expertise and focus on emerging AI technologies make them an ideal partner for this initiative.”
John Spindler, Partner at Twin Path Ventures, added: “This partnership with British Business Investments marks a significant milestone for Twin Path Ventures as we continue to build on our mission of empowering AI innovators. Their support will enable us to expand our reach and impact, particularly in regions where funding gaps persist. We look forward to identifying and supporting the next wave of UK AI pioneers.”
Twin Path Ventures has already made over 20 strategic investments in early-stage AI-first companies since its inception 18 months ago. This collaboration will accelerate its ability to identify and nurture innovative ventures poised to make a global impact.
More of this ambition is needed if the UK isn't going to be left behind in the AI race.