Diversity fund Ada Ventures raises $50 million

Fostering founders with different experiences and backgrounds: With this promise, Ada Ventures has raised more money than expected.

Diversity-focused British-European VC fund Ada Ventures has raised $50 million in capital, surpassing its self-imposed goal, co-founder Francesca Warner announced Wednesday. "We weren't even sure we would raise $30 million," she said. But in fact, she said, they were able to easily reach the original cap of 35 million.

The fund, named after British mathematician Ada Lovelace, aims to use the money to support underrepresented founders in the UK and Europe. To do so, Ada Ventures relies on a scout network that includes the Muslamic Makers initiative, which supports Muslims in the tech industry.

In the current year, the VC firm has invested in eight companies, four of which have a woman CEO. In the coming year, Ada also plans to focus on LGBTQ+ founders and entrepreneurs with disabilities. Founder Matt Penneycard told Techcrunch

that many investors would back Ada not only for the diversity promise, but also for the expected return on investment. "Some of our investors believe we will generate better returns than other funds because they know where we are looking," he said. As a result, he said, Ada can seize investment opportunities that other funds might overlook.