Eka Ventures Closes £80M Fund II at Hard Cap to Prove Impact VC Can Deliver Top-Decile Returns
TL;DR
London-based Eka Ventures has closed its second fund at £80 million ($107 million), hitting the hard cap and oversubscribing. Co-founded by Jon Coker and Camilla Dolan, Eka backs pre-seed and seed-stage UK startups at the intersection of preventative health, sustainable consumption, and access to essential services. Fund I, a 2021 vintage, ranks in the top 5% globally on Cambridge Associates benchmarks for both TVPI and DPI, anchored by the Runna-to-Strava exit. The firm has already deployed into seven companies from Fund II, bringing total AUM to approximately $200 million.
Key Takeaways
Top 5% Fund I performance validates the impact-returns thesis. The most important number in this announcement is not the fund size but the Fund I performance. Ranking in the top 5% globally on a Cambridge Associates 2021 vintage benchmark, on both unrealized (TVPI) and realized (DPI) value, directly challenges the persistent narrative that impact investing requires a returns sacrifice. Eka is not just claiming impact and returns are compatible; they have the audited data to prove it at a meaningful scale.
77% LP re-up rate signals deep institutional conviction. Over three-quarters of Fund II commitments came from existing Fund I LPs, a re-up rate that most emerging managers would envy. When institutions like British Business Bank, Better Society Capital, and Guy's & St Thomas' Foundation double down, it reflects portfolio-level confidence, not just headline enthusiasm. The addition of Molten Ventures as a new institutional LP adds a strategic dimension, given Molten's own portfolio and co-investment network.
AI-powered sourcing is a genuine competitive edge, not a buzzword. Eka's proprietary AI-backed sourcing platform was responsible for 47% of Fund I investments. In a pre-seed and seed market where deal flow quality determines returns, systematically surfacing founders before they hit the broader radar is a structural advantage. This is not a CRM with a chatbot bolted on; it is an integral part of how the firm generates alpha at the earliest stage.
Lead discipline at 90% sets Eka apart from the impact VC crowd. Leading or co-leading 90% of deals, with no competing term sheet in 69% of cases, tells you Eka is not following established consensus. They are setting terms and pricing risk independently. That discipline, combined with a concentrated 30-company portfolio per fund, creates the conditions for genuine portfolio construction rather than index-style diversification.
Fund Overview
Fund Name: Eka Ventures Fund II
Fund Size: £80 million ($107 million) - at hard cap, oversubscribed
Stage: Pre-seed and Seed
Check Size: £0.5M-£3M (~$2M average first cheque), with follow-on reserves
Geography: United Kingdom
Focus: Preventative healthcare, sustainable consumption, access to essential services (housing, insurance, education)
Key LPs: British Business Bank, Better Society Capital, Guy's & St Thomas' Foundation, The Health Foundation, Esmée Fairbairn Foundation, Aurum Impact, Vivensa Foundation, Molten Ventures
Why This Fund Matters
Impact venture capital has spent the last decade trying to escape a credibility trap. Too many impact funds launched with compelling mission statements but underwhelming returns, reinforcing the perception among institutional allocators that impact was a concession, not a strategy. Eka Ventures is methodically dismantling that perception with actual performance data.
The top 5% Cambridge Associates ranking for Fund I is not an artifact of a single lucky exit. While Runna's acquisition by Strava provided real DPI, the TVPI performance indicates the broader portfolio is generating value across multiple positions. For an impact fund investing at pre-seed and seed, where mortality rates are highest and timelines to liquidity are longest, this is an exceptionally strong signal.
The UK early-stage market context makes this fund particularly timely. British early-stage investing has been in a structural adjustment since 2022, with many generalist seed funds pulling back or moving upstream to Series A. Eka's willingness to stay at pre-seed and seed, leading rounds with no competing term sheet in the majority of cases, means they are filling a gap that has widened as other capital sources have retreated. The British Business Bank's continued support underscores the policy rationale: the UK needs more capital flowing to earliest-stage companies in sectors that address genuine societal challenges.
What makes Eka structurally interesting is the thesis itself. Preventative health, sustainable consumption, and essential services are not niche verticals; they are massive, regulation-driven market transitions that will produce outsized winners over the next decade. The firm's insight is that consumer technology companies addressing these transitions can achieve venture-scale outcomes precisely because the addressable markets are so large and the incumbents so slow to adapt.
The Team
Jon Coker founded Eka in 2018 after a decade investing at seed and Series A in consumer technology at MMC Ventures, where he served as Co-Managing Partner and Head of Investment. His MMC portfolio included 15 companies spanning Gousto, Interactive Investor, Bloom & Wild, Peak, and Total Mobile. He holds a degree in Engineering Science from Oxford.
Camilla Dolan co-founded Eka alongside Coker, bringing experience investing in consumer technology from seed to growth since 2013. Her pre-venture career began at Bain & Company, including stints in Tokyo and San Francisco. At MMC, she backed companies including Bloom & Wild, Gousto, and Elder as they scaled into category leaders. She studied Law at Oxford.
The broader team now includes Hamish Law, Alicia Walker, Estia Ryan, and Sunaina D., a significant build-out from Fund I when Coker and Dolan operated without a team. Coker noted in his announcement that having a team for Fund II made the fundraise and deployment process materially easier, a candid acknowledgment that solo-GP or duo-GP models face real operational constraints at this fund size.
Early Portfolio
Eka has already backed seven companies from Fund II, with five publicly announced: Hesta Health (healthcare), Cyclana Bio (biotechnology), conveyd (logistics/supply chain), DITTO Daily (consumer), and Chune (consumer tech). The pace of deployment, seven investments before the final close announcement, indicates the firm was actively investing during the fundraise, a sign of confidence in the pipeline and LP willingness to accept a partially deployed fund.
What This Means for Founders
If you are building a consumer technology company in the UK that addresses preventative health, sustainable consumption, or access to essential services like housing, insurance, or education, Eka should be near the top of your target investor list. The sweet spot is pre-seed to seed, with a first cheque around £1-2 million and clear follow-on capacity.
The firm's preference for leading or co-leading rounds, combined with its AI-driven sourcing engine, means founders do not necessarily need a warm introduction. Eka's system is designed to find companies proactively. That said, the concentrated portfolio of 30 companies per fund means selectivity is high. Founders should expect a rigorous process focused on market size, team quality, and the authenticity of the impact thesis, not impact as a marketing wrapper but impact as a core driver of the business model.
Fund Momentum Take
Eka Ventures is quietly building one of the most compelling track records in European early-stage venture, and Fund II positions them to compound that advantage. The numbers speak clearly: top 5% vintage performance, 77% LP re-up rate, hard cap hit with oversubscription. These are metrics most 2021-vintage funds would trade their carry for.
The risk for Eka is the same risk every emerging manager faces when graduating from a breakout Fund I to a scaled Fund II: can the magic survive the institutionalization? Doubling from £68 million to £80 million is manageable, but the firm will need to maintain its sourcing edge and deal discipline as it becomes better known. The AI sourcing platform is a genuine moat here, but only if it continues to surface companies that the broader market has not yet priced.
Our bet: Eka will continue to outperform because their thesis is structurally aligned with where consumer spending, regulation, and technology are all heading simultaneously. Health, sustainability, and essential services are not trends; they are decade-long market transitions. A fund that can consistently identify the best seed-stage companies in these categories, lead their rounds, and support them through to Series A and beyond, has a durable competitive position. Fund II at hard cap is validation. Fund III, when it comes, will be the confirmation.
Frequently Asked Questions
What is Eka Ventures Fund II?
Eka Ventures Fund II is an £80 million ($107 million) venture capital fund focused on pre-seed and seed-stage UK startups in preventative health, sustainable consumption, and access to essential services. It closed at its hard cap and was oversubscribed.
Who founded Eka Ventures?
Eka was co-founded in 2018 by Jon Coker and Camilla Dolan, both formerly of MMC Ventures, where they backed companies like Gousto, Bloom & Wild, and Elder. They have been working together for 13 years.
How did Eka Ventures Fund I perform?
Fund I, a 2021 vintage, ranked in the top 5% globally against a Cambridge Associates benchmark on both total value (TVPI) and distributed value (DPI). Notable exits include Runna, which was acquired by Strava.
What types of companies does Eka invest in?
Eka invests in consumer technology companies at the intersection of preventative healthcare, sustainable consumption, and widening access to essential services such as housing, insurance, and education. Typical first cheques are around £1-3 million.
Who are the LPs in Eka Ventures Fund II?
Key investors include British Business Bank, Better Society Capital, Guy's & St Thomas' Foundation, The Health Foundation, Esmée Fairbairn Foundation, Aurum Impact, Vivensa Foundation, and Molten Ventures. Approximately 77% of commitments came from existing Fund I LPs.
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