Octopus Ventures launches First Cheque II, the second iteration of its pre-seed fund backing the next generation of ambitious entrepreneurs 

• First Cheque II, which is targeting a doubling of First Cheque I, reached first close and is actively investing. 
• The fund will give ambitious entrepreneurs access to institutional backing from their first cheque, combining the agility of an angel investor with the networks, operating experience and expertise of Octopus Ventures & Octopus Group. 
• The investment team has already backed more than 80 businesses through First Cheque I, spanning biotech and healthcare, AI, deeptech, fintech, robotics and industrial technology including break-out companies like OLIX and Prima Mente. 
• The first close includes the acquisition of Onstage’s fund and eight-company portfolio, giving First Cheque II an established portfolio from launch. 

Octopus Ventures, part of Octopus Investments and a pan-European venture capital team investing in the people, ideas and industries that will change the world, has announced the first close of its second dedicated pre-seed fund, First Cheque II (FC II). FC II is targeting a raise more than twice the size of the £10m First Cheque I.  

First Cheque I and II are dedicated pre-seed funds that back ambitious entrepreneurs from the very beginning of their startup journey. They invest in UK and European businesses spanning sectors including AI, biotech and healthcare, deeptech, fintech, robotics and the technologies reshaping the physical world. As with its first iteration, FC II is building a diversified portfolio of more than 80 ambitious founders with exceptional ideas, across the UK and Europe. 

FC II combines deep pre-seed expertise with the operating heritage and firepower of Octopus Group. Kirsten Connell was part of the original Seedcamp investment team, while Tilly Fleming is an alumnus of Venrex and a member of Forbes’ Finance 30 Under 30. Octopus Group has a long track record not just of investing in ambitious businesses, but of building and scaling businesses itself. 

That combination gives founders the speed, conviction and personal relationship of an angel investor, with the network, expertise and operational capabilities of an established investment institution. From shaping their proposition and making their first critical hires to navigating growing pains and raising their next round, founders can draw on the experience of the Octopus Ventures team and the wider Octopus Group. It means FC II can support founders not simply with their first cheque, but with the experience of what comes next. 

First Cheque I is already a top-quartile global performer and one of Europe’s leading pre-seed funds, despite being only four years into its life. Across a portfolio of more than 80 companies, it is already seeing strong valuation growth, with several emerging businesses demonstrating the potential for significant returns. Among them is OLIX, backed by First Cheque from day one and now valued at more than $3bn, alongside AI biology company Prima Mente, which has recently attracted investment from Nvidia. 

Onstage acquisition 

As part of the first close, FC II has acquired the fund and portfolio created by Onstage, an early-stage investment platform founded in 2020 by Taos Edmondson, Partner at dmg ventures, and Hector Mason, General Partner at Episode 1 Ventures. The acquisition means FC II begins investing with six exciting portfolio companies, including Serova Bio, which uses AI to develop personalised cancer vaccines. Taos will be staying on as a Venture Partner at Octopus Ventures, as it continues to actively invest across stages while growing organically and inorganically.

“First Cheque I reinforced our belief that exceptional entrepreneurs can come from anywhere, but finding them requires focus. These founders need partners who understand how quickly decisions must be made at this stage, but who can also open doors to the talent, expertise and future investment they will need.  First Cheque II will allow us to continue backing these ambitious leaders before their potential is obvious to the rest of the market. 

“Our focus is straightforward: find Europe’s most promising entrepreneurs, move quickly when we believe in them, and help them build the foundations of transformative businesses. We are incredibly grateful to the investors who have backed us again, as well as those joining us for the first time.

Kirsten Connell, Partner at Octopus Ventures and FC II manager

“We created Onstage to help talented founders meet the investors who could make a real difference to their businesses. As the platform and portfolio grew, it became clear that the fund needed a permanent home with a team that shared our approach to pre-seed investing. 

“First Cheque stood out because of the close alignment between our strategies, its commitment to the earliest stage of the founder journey and the strength of our relationship with the team. We are delighted that the Onstage portfolio will now benefit from the wider Octopus Ventures network.” 

Taos Edmondson and Hector Mason, co-founders of Onstage

“At Octopus Ventures, we want to be the team ambitious European entrepreneurs choose when they are ready to build world-class companies. That means being there for them from the very beginning, and supporting founders through each stage of their growth. 

Erin Platts, CEO of Octopus Investments and Octopus Ventures