Aviva Investors has launched a £150 million fund to provide finance to early stage technology companies.

The Venture and Growth Capital fund will target fintech, insurtech, healthtech, science and technology, and climate and sustainability.

The launch also builds on the Mansion House Compact announced by the UK Government in July 2023, which outlined a series of proposals to unlock investment into emerging industries, including unlisted companies, and to support growth across the economy.

Aviva is a founding signatory to the Compact, as it seeks to encourage investment into unlisted equities across its DC pensions business. 

The company has targeted an overall return of 15% per year on a five-year rolling basis. It will make its venture investments through third-party funds and other evergreen vehicles.

Dame Amanda Blanc, group CEO at Aviva, said: “Aviva is investing more and more in the UK, to support growth and back Britain’s flourishing early-stage companies.

“This new fund will provide vital finance to some of the UK’s most promising, high-growth businesses, aiming to deliver great returns for our customers.”

Mark Versey, chief executive at Aviva Investors, added: “This fund marks another step in our ambition to unlock the benefits of private markets for more investors.”

The value of venture capital (VC) investment in Scottish start-ups increased 14% in the final quarter of 2024, according to KPMG’s latest Venture Pulse report.

A total of £92.3m was raised by the country’s start-ups from October to December, up from the £80.9m raised in Q3 of last year.

The volume of transactions also grew to 25, up from 21 in Q3. This was driven by investment activity in the capital, particularly Resolution Therapeutics’ £67 million funding round, which significantly boosted overall investment for the country.

Nationally, the UK raised a total of £15.5 billion in VC investment in 2024, with funding in Q4 alone increasing by more than 40% to £4.4 billion. Investments in 569 businesses contributed to the end of year surge, with the increase in value driven largely by £1.1bn raised by London-based firm GreenScale.

According to KPMG’s latest Venture Pulse report, the UK achieved the highest level of VC investment in Europe in 2024.