London early-stage investor Connect Ventures has closed $55m towards an $80m fifth fund, anchored by the British Business Bank. The vehicle will lead pre-seed rounds across Europe with cheques of $500,000 to $5m, with a focus on technical founding teams.
Connect Ventures was founded in 2012 and has backed more than 120 companies at pre-seed and seed, including payments infrastructure business TrueLayer and cybersecurity company Aikido Security. The firm is run by a GP-only team of Pietro Bezza, Sitar Teli and Rory Stirling.
The close
The first close represents about 69% of the $80m target, leaving roughly $25m to raise before a final close. The British Business Bank anchored the fund, continuing its run of commitments to UK-based venture managers this year.
Returning limited partners include Aldea Ventures, Sella Venture Partners and Molten Ventures. New LPs include European family offices and founders of companies Connect has previously backed, a structure that brings portfolio founders onto the fund's own cap table.
The size of the British Business Bank's commitment and the fund's fee and carry terms were not disclosed.
Strategy
Fund V keeps the firm's low-volume model: a small number of investments per year, each led by a single partner who stays involved as the company grows. Connect leads first rounds rather than following, which typically means setting price and terms at pre-seed.
The new fund puts particular weight on teams whose technical expertise shapes the product, a shift towards deep tech that reflects where early-stage capital in Europe has been moving. Teli said outlier companies in the current cycle "will be built by founders with real technical depth at their core".
Market context
The close comes as UK seed funding tightens and emerging and smaller managers rely more heavily on the British Business Bank as a cornerstone LP. A $55m first close for a fifth fund suggests Connect has retained its core LP base, with Molten Ventures among the returning backers.
With cheques of up to $5m, a fully raised $80m fund would support a concentrated portfolio, leaving room for follow-on reserves in its strongest companies.
What's next
Connect will begin deploying Fund V immediately, investing across Europe. The final close, and whether the fund reaches or exceeds its $80m target, will be the next marker of LP appetite for European pre-seed strategies.
Original source: Sifted — https://sifted.eu/articles/connect-ventures-55-million-fund-deeptech-founders/ (also reported by Tech.eu — https://tech.eu/2026/09/23/connect-ventures-announces-first-close-of-80m-fund-v-to-back-europes-technical-founders/)
