Eka Ventures has just closed a $107M second fund as it doubles down on health, wellbeing, and sustainability.\u00a0<\/p>\n
Founded in 2018 by Camilla Dolan<\/a> and Jon Coker<\/a>, the UK-focused firm backs consumer tech companies working on the decarbonisation of major industries; preventative, inclusive healthcare<\/a>; and improved access to essential products and services.\u00a0<\/p>\n Like its first vehicle, it will use Fund II to cut cheques of around $2M to 30 companies at the pre-seed and seed stage, and prefers to lead or co-lead rounds. It has already made six investments from the pot.<\/p>\n \u201cIt is exactly the same strategy \u2014 with inflation baked into it,\u201d Dolan tells\u00a0Tech Funding News, pointing to the fact that the final close is just a little higher than Eka\u2019s first fund.\u00a0<\/p>\n \u201cThat was a very conscious decision. We want to stay early-stage, we want to stay very focused on the thesis, and to retain close relationships with founders, being their lead partner at the early stage.\u201d<\/p>\n Institutionalising the fund\u2019s LP base<\/p>\n Its investors, known as limited partners or LPs, include the British Business Bank<\/a>, Better Society Capital and Guy\u2019s & St Thomas\u2019 Foundation. Around 77% of commitments in Fund II came from existing LPs; the firm had more interest than it had planned for, Dolan says, but decided not to raise more than it had planned.\u00a0<\/p>\n Its choice of LPs reflects Eka\u2019s moves to institutionalise its capital base, shifting from previous founders and operators who supported the first fund to larger asset managers, such as foundations and endowments. The firm is building long-term strategy, and already looking ahead to its third fund.\u00a0<\/p>\n Dolan gives credit to her impact investing peers for their recommendations and warm introductions to potential LPs: \u201cThat\u2019s a testament to the people that are still in the impact market,\u201d she says. They are \u201cdriven by the vision and want to be helpful to the whole ecosystem.\u201d<\/p>\n Later-stage investors supporting early-stage funds also helps their own deal flow pipeline<\/a>, of course.<\/p>\n The firm saw its first big exit last year when Runna<\/a>, a training app for running, was sold to Strava. The exit\u2019s direct return on investment (DPI) and projected return on investment (TVPI) put Fund I, a 2021 vintage, in the top 5% globally against a 2021 Cambridge Associates benchmark, Dolan says.\u00a0<\/p>\n It counts socially responsible insurance provider Urban Jungle, household energy platform Axle<\/a>, and digital physiotherapy company Flok amongst its existing portfolio.\u00a0<\/p>\n Backing overlooked founders\u00a0<\/p>\n Eka sourced 47% of its deals thus far from a data platform it developed in-house. Dolan says it surfaces companies that are on-thesis and mission-aligned \u2014 it has a \u201csocial objectives\u201d clause in every deal, ensuring they stay aligned \u2014 and helps to filter 10,000 startups at the top of the funnel down to the 1,000 that the team actually meets each year.<\/p>\n Dolan says that it helps Eka spot \u201cexceptionalism\u201d, be it through sport or academia. The investor points to the cofounder of sustainable parcel delivery startup Hived, Murvah Iqbal<\/a>, as an example. Iqbal was an under\u201117 Man City women\u2019s captain, ran an influencer strategy for her family\u2019s business before it was mainstream, and has an excellent academic track-record.<\/p>\n Looking forward, the firm is interested in end-to-end platform plays and the combination of AI software and hardware.\u00a0<\/p>\n These models allow users to really capture \u201cthe economic and shared value\u201d of technology, Dolan says, especially in an industry like healthcare, which is otherwise highly regulated and hard to penetrate. The emergence of end-to-end and regulated technologies \u201ctotally changes capacity in the healthcare system,\u201d she adds.\u00a0<\/p>\n