Arāya Ventures Secures £18.2 Million to Propel UK Startups with New Super Angel Fund

Arāya Ventures, a London-based venture capital firm, has recently made waves in the UK startup ecosystem with the announcement of its debut fund. The Arāya Super Angel Fund has successfully completed its second close, securing £18.2 million in total funding. This milestone achievement includes a significant £5 million commitment from British Business Investments, a subsidiary of the British Business Bank.

The fund's ambitious goal is to invest in up to 60 innovative pre-seed and seed-stage startups over the next four years. Arāya Ventures is primarily focusing on UK-based companies, with a particular interest in transformative sectors such as Health, FinTech, Commerce, and the Future of Work. However, the fund has also allocated 20% for global investments, demonstrating its commitment to supporting promising startups beyond the UK's borders.

Founder and Managing Partner Rupa Popat brings a wealth of experience to the table, with over two decades as an exited entrepreneur and investment banker. Her unique perspective as both a founder and investor has shaped Arāya Ventures' approach to startup support. "As a former founder turned investor, I've been on both sides of the table and I know that for most early-stage founders, whilst capital is important, it's also about the additional value and support that investors can provide," Popat explains.

The fund's investment strategy is already bearing fruit, with Arāya Ventures having invested in nine companies to date. Notably, over half of these investments are in AI startups, reflecting the UK's strong position in the artificial intelligence sector. Recent investments include promising ventures such as Capably, Research Grid, and Cold AI.

British Business Investments' £5 million commitment comes through its Regional Angels Programme, which aims to address regional imbalances in access to early-stage equity finance for smaller businesses across the UK. This partnership underscores the shared commitment to fostering innovation and driving growth in the technology sector while addressing existing imbalances in the early-stage funding environment.

The Arāya Super Angel Fund has attracted a diverse group of investors, including fund of funds Saarthi Capital, C-Suite professionals like former Credit Suisse CEO Phil Cutts and former Browns CEO Holli Rogers, successful entrepreneurs, and family offices from the UK and the Middle East. This varied investor base reflects the fund's community-powered approach and its ability to leverage a wide network of expertise and resources.

Arāya Ventures' launch comes at an opportune time for the UK startup scene. The country's tech sector has been flourishing, with 171 unicorns created to date and a market valuation of $1.1 trillion reported in 2024. The UK has also established itself as a leader in AI startups, boasting 1,800 VC-backed AI startups and 20 AI unicorns.

Beyond providing capital, Arāya Ventures aims to be operationally impactful to founders by offering access to its extensive networks. The fund's portfolio companies have already benefited from valuable introductions to prospective investors and customers, as well as strategic advice on growth and scaling.

Adam Kelly, Managing Director at British Business Investments, expressed enthusiasm for the partnership: "The Super Angel Fund is a great example of leveraging angel expertise in a formal committed structure which works well for investee companies. By co-investing alongside Arāya's Super Angel Fund, we are bringing together finance, business experience and skills to support the development of high-growth smaller businesses across the UK."

As Arāya Ventures continues to deploy its capital and support innovative startups, it is poised to play a significant role in shaping the future of the UK's entrepreneurial landscape. With its focus on transformative sectors and commitment to providing more than just financial backing, the fund is well-positioned to nurture the next generation of tech leaders and contribute to the ongoing success of the UK startup ecosystem.

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