Octopus Ventures Hits First Close on Pre-Seed Fund II

TL;DR

Octopus Ventures has held the first close of First Cheque II, its second dedicated pre-seed fund, targeting more than £20 million, over double the £10 million size of First Cheque I. As part of the first close, the fund acquired the portfolio and operations built by Onstage, an early-stage platform founded in 2020 by Taos Edmondson and Hector Mason, bringing in six companies including Serova Bio and keeping Edmondson on as a Venture Partner. First Cheque I backed more than 80 companies, including OLIX, now valued above $3 billion, and AI biology company Prima Mente. The second fund will again target more than 80 founders across the UK and Europe, with a focus spanning AI infrastructure, robotics, health and biology, digital security, industrial operating systems, and energy.

Key Takeaways

The fund is scaling up meaningfully, even if the exact first-close number isn't public. First Cheque II is targeting more than £20 million against First Cheque I's £10 million, more than doubling the program's firepower. The size of this specific first close wasn't disclosed, which is normal at this stage of a fundraise rather than a reason for concern.

Octopus is buying its way into a ready-made portfolio, not just raising a bigger pool of capital. Acquiring Onstage's fund and portfolio brings six existing companies, including Serova Bio, into First Cheque II from day one, and keeps Onstage co-founder Taos Edmondson involved as a Venture Partner. That's a faster way to build deployment momentum than starting a second fund entirely from scratch.

First Cheque I's early results give the second fund real proof points. A portfolio that includes OLIX, now valued at more than $3 billion, and Prima Mente gives Octopus Ventures a concrete answer to the question every pre-seed fund eventually faces: did the first fund actually work. Those two names alone are a stronger calling card than most debut pre-seed vehicles can point to.

The sector focus leans hard into deep and physical tech. AI infrastructure, robotics, health and biology, digital security, industrial operating systems, and energy are not the typical software-first categories many pre-seed funds chase, and the continuity with First Cheque I's focus suggests Octopus sees durable demand for capital in these harder, more technical categories at the earliest stage.

Fund Overview

Fund Name: First Cheque II (Octopus Ventures)
Fund Size: Targeting more than £20 million; first close amount not disclosed. First Cheque I closed at £10 million
Stage: Dedicated pre-seed
Check Size: Not disclosed
Geography: United Kingdom and Europe
Focus: AI infrastructure, robotics, health and biology, digital security, industrial operating systems, and energy
Key LPs: Not disclosed

Why This Fund Matters

Octopus Ventures is one of the UK's best-known venture brands, and a dedicated pre-seed vehicle doubling in target size is a useful read on where established, multi-stage firms think the earliest-stage market is headed. Rather than treating pre-seed as a loss-leader relationship-building exercise ahead of larger checks later, Octopus is putting a bigger, purpose-built fund behind it for a second consecutive cycle, which suggests the first fund's returns and deal flow justified the continued, larger commitment.

The Onstage acquisition is the more unusual part of this story. Rather than simply hiring Taos Edmondson or building out a scouting function internally, Octopus bought an existing early-stage platform wholesale, portfolio and operations together, and folded it directly into First Cheque II. That gives the new fund six seasoned portfolio relationships and a founder with four-plus years of pre-seed sourcing experience from day one, rather than asking a brand-new fund to build that pipeline from zero.

First Cheque I's portfolio is doing real work for the firm's credibility here. A pre-seed check that turns into a stake in a company valued above $3 billion, as OLIX apparently has become, is the kind of outcome that pre-seed investors wait years to be able to point to, and it gives Octopus Ventures a concrete answer when LPs or founders ask whether writing the smallest, earliest checks in a multi-stage firm's book actually produces venture-scale outcomes.

The Team

Kirsten Connell and Tilly Fleming are leading First Cheque II, according to reporting on the fund's first close. Tilly Fleming is listed on Octopus Ventures' own team page with a pre-seed focus, consistent with leading this fund; Octopus Ventures' publicly listed team page had not yet added Kirsten Connell as of this writing, which may simply reflect the kind of short lag between an announcement and a website update that's common around fund news. Erin Platts holds the title of CEO at Octopus Ventures overall. As part of the first close, Taos Edmondson, co-founder of Onstage, joins as a Venture Partner; his Onstage co-founder Hector Mason was not mentioned in connection with an ongoing role at Octopus Ventures.

Early Portfolio

First Cheque I backed more than 80 companies, with OLIX, now valued at more than $3 billion, and AI biology company Prima Mente named as standout results. First Cheque II starts with six companies inherited through the Onstage acquisition, including Serova Bio.

What This Means for Founders

UK and European founders building at the pre-seed stage in AI infrastructure, robotics, health and biology, digital security, industrial operating systems, or energy now have a larger, better-resourced Octopus Ventures vehicle specifically built for them, backed by a firm with the balance sheet and network to support companies well past the earliest round if things go well. The plan to back more than 80 founders again suggests Octopus intends to keep writing a high volume of small, early checks rather than concentrating First Cheque II into a handful of larger pre-seed bets.

Founders who were part of the Onstage platform, or who might otherwise have approached Onstage directly, should now expect Octopus Ventures and Taos Edmondson's continued involvement as a Venture Partner to be the relevant point of contact going forward, since that platform's portfolio and operations have moved inside First Cheque II.

Fund Momentum Take

Doubling a pre-seed fund's target size while simultaneously acquiring another early-stage platform's portfolio is a more aggressive move than simply raising a bigger Fund II, and it's worth watching whether other multi-stage firms with dedicated early-stage vehicles start doing the same thing: buying existing sourcing relationships rather than building them organically. If it works, it's a faster way to scale deal flow than hiring and ramping new scouts or associates from scratch.

The one piece of this story that deserves a plain caveat rather than a conclusion is sourcing. The reporting behind this piece traces back to a single outlet's coverage, which itself cited vcwire.tech, and we were not able to independently confirm Kirsten Connell's role through Octopus Ventures' own public team page at the time of writing. None of that makes the underlying news wrong, fund announcements often outrun a firm's own website updates, but it's the kind of detail worth treating as provisional rather than fully confirmed until Octopus Ventures' own materials catch up.

The sector focus is the most durable signal here. A firm the size of Octopus Ventures choosing to lean its dedicated pre-seed capital into AI infrastructure, robotics, and industrial operating systems rather than consumer or vertical software is a reasonable bet that the hardest, most technical categories are where genuine pre-seed-stage differentiation still exists, since those categories are harder for generalist angels and smaller funds to underwrite credibly.

Frequently Asked Questions

How big is First Cheque II?
Octopus Ventures is targeting more than £20 million for First Cheque II, more than double the £10 million size of First Cheque I. The size of the fund's first close was not disclosed.

What happened with Onstage?
As part of First Cheque II's first close, Octopus Ventures acquired the fund and portfolio built by Onstage, an early-stage platform founded in 2020 by Taos Edmondson and Hector Mason. The acquisition brought six companies, including Serova Bio, into First Cheque II, and Edmondson joined as a Venture Partner.

What did First Cheque I achieve?
First Cheque I backed more than 80 companies on a £10 million fund, including OLIX, now valued at more than $3 billion, and AI biology company Prima Mente.

What does First Cheque II invest in?
The fund is focused on pre-seed investing across AI infrastructure, robotics, health and biology, digital security, industrial operating systems, and energy, and plans to back more than 80 founders across the UK and Europe.

Who leads the fund?
Kirsten Connell and Tilly Fleming are leading First Cheque II according to reporting on the announcement. Tilly Fleming is listed on Octopus Ventures' team page with a pre-seed focus; Erin Platts is CEO of Octopus Ventures overall.

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