SuperSeed has launched its third fund, securing an underlying commitment of up to £50m from the British Business Bank to invest in seed-stage companies focused on physical AI. The fund, supported through the Enterprise Capital Funds program, targets B2B AI and SaaS startups applying artificial intelligence to industries such as manufacturing, energy, construction, and autonomous systems.
Fund III supports companies developing software platforms, algorithms, control systems, and integrated hardware designed to make industrial infrastructure more intelligent. This strategy reflects the ongoing transition from experimental AI pilots to fully deployed, revenue-generating systems across the physical industry.
Founded in 2018 by Mads Jensen and Dan Bowyer, Superseed has built a portfolio of 38 companies across its two previous funds. The company values operational experience, with all partners building and scaling technology companies and working closely with portfolio companies on commercial strategy, enterprise sales, and customer access.
As a major investor in UK venture and growth capital funds, British Business Bank provides the underlying commitment to help funds reach first close and scale their investment strategies. The firm’s Enterprise Capital Funds program has supported 52 funds to date, delivering more than £2.7bn of funding to early stage companies.
SuperSeed’s latest fund has also been certified by the UK’s National Security Strategic Investment Fund, continuing an established relationship with its previous fund. The focus on physical AI is consistent with broader efforts to strengthen technological capabilities in areas deemed critical to economic growth and national strategy.
Examples in the portfolio include companies such as Ai Build, which develops generative algorithms for automated large-scale 3D printing, OctaiPipe, which deploys AI-driven energy optimization systems, Hive Autonomy, which builds software to manage autonomous industrial vehicles, and All3, which combines AI design with automated construction to accelerate home delivery.
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“The companies we are supporting are deploying AI in areas where the UK has real industrial strength and strategic interest, such as manufacturing lines, energy infrastructure and construction sites. Two years ago it was mostly pilots. Now it’s a working production system with paying business customers. That transition is what physical AI really means, and that’s why British Business Bank has returned as a cornerstone investor in our second fund.”
Mads Jensen, SuperSeed Managing Partner
“SuperSeed has a strong track record of identifying innovators and a deep understanding of how AI can be applied to areas of national strategic importance, including modern industrial strategies. This foundational work will attract additional private capital to support innovative companies developing applied physical AI systems that drive and optimize the efficiency of critical business infrastructure.”
Christine Hockley, Managing Director and Co-Head of Funds, British Business Bank
“SuperSeed’s focus on physical AI is strongly aligned with our aim to strengthen our technological capabilities in areas that are central to future economic growth. Following our previous commitment to SuperSeed’s Fund II in 2022, we are pleased to continue our support to SuperSeed, which will support founders bringing advanced AI to real-world impact across the UK economy.”
Mark Sims, Senior Director, Funds, British Business Bank
