Today, we are thrilled to announce the launch of Outward VC Fund II, reaffirming our commitment to helping founders breakthrough at the critical early stage. This mission, which drove the creation of Outward’s first fund in 2019, remains at the heart of our new fund.
The Early Stage Defines a Founder’s Journey
A founder’s journey begins with identifying a significant problem and envisioning a bold solution. Domain expertise and timing are crucial ingredients in this process. With support from family, friends, angel investors, and pre-seed VCs, founders build a minimum viable product and embark on commercial testing.
At this stage, founders face a multitude of complex challenges:
- Developing and refining their product
- Learning to work effectively with co-founders
- Making crucial hires
- Winning their first customers
- Navigating regulatory hurdles
All while managing dwindling cash reserves and maintaining a precarious work-life balance. This period is often the most challenging for raising funds, and the investors who join the cap table at this early stage will likely be a defining part of the journey.
Our Approach: Making a Real Difference for Founders at the Early Stage
At Outward, we understand the challenges faced by early-stage founders. Having met thousands and invested in over 100 founders at this crucial juncture, we’re driven by a desire to make the early stage easier for founders.
Our core principles include:
- No social proof required: We evaluate founders based on their merits, not their connections.
- Bias for drive: We seek founders with chips on their shoulders, determined and hungry for success.
- Swift decision-making: We work efficiently to understand founders and build our investment case.
- Clear communication: If we can’t build conviction, we provide honest, constructive feedback.
- All-in support: Once committed, we roll up our sleeves to help close funding rounds.
- Ongoing engagement: Post-investment, we remain actively involved, founders can expect us to always do our homework and turn up (or stand back if that makes more sense)
Fintech: Redefining What it Means
With Fund II, we’re doubling down on our belief that fintech extends far beyond traditional financial services. We envision a future where finance is more open, more embedded, and intertwined with global, society-shifting challenges:
- Adapting to longer lifespans and evolving work-learn paradigms
- Facilitating intergenerational wealth transfer in a tech-enabled world
- Addressing healthcare inefficiencies and insurance inadequacies
- Revolutionizing borrowing practices
- Securing private data flow through institutional APIs
- Improving pension fund value assessment
- Streamlining real estate due diligence
- Modernizing consumer credit referencing
- Integrating AI into asset and wealth management
These areas represent the new frontier of fintech – technology that drives economic impact while being a force for good. It’s why our first fund led early investment rounds in groundbreaking companies like Bud, Clearglass, Curve, Exate, Infact Systems, Islamic Finance Guru, Oneday, Orbital Witness, Peppy Health, Supercede and Vauban (exited to Carta).
A big thank you to our supporters
None of this would be possible without the support of our valued partners and investors. Our new fund was made possible by the backing of the British Business Bank and a diverse group of LPs, many of whom are seasoned entrepreneurs and investors themselves. We’re deeply grateful for their trust and particularly appreciative of the many existing LPs who have renewed their commitment from our first fund.
Looking Ahead (While Learning from the Past)
Venture Capital has been through a lot these past few years. As interest rates surged and IPO markets cooled, many startups and investors faced harsh realities. The truth is many start-up founders and investors lost their way when money flowed freely in a zero-interest rate environment. They optimised for the wrong things and learnt some tough lessons. The bright side is, we are entering a new phase where compelling businesses are being built in an environment where founders and investors are more realistic and thoughtful.
In the UK, we’re seeing founders who combine exceptional domain expertise with world-leading technical capabilities, particularly in artificial intelligence and machine learning. This convergence creates a landscape ripe with opportunity for both founders and investors.
We stand at the threshold of an exciting new chapter in the world of venture capital and innovation. With the launch of Outward VC Fund II, we’re more committed than ever to supporting the visionaries who will shape our future.
Join us as we embark on this journey to empower the next generation of groundbreaking startups and transformative technologies.
