Passion Capital Closes $55M AI and FinTech Seed Fund

Jan de Vries · 2026-04-21

British VC firm Passion Capital just announced the close of its fourth Seed fund, Passion IV, along with two SPVs. The total comes in at $55 million (€46 million), giving the firm fresh capital to invest in its next batch of early-stage startups. This fund is 100% backed by private capital. And it keeps the same focus: writing first checks to founders building in AI, FinTech, and Enterprise Risk across the UK and Europe. So far, they’ve already invested in 13 companies. “None of this is possible without the backing of our LPs. As investors we always back people first and their ability to execute, and AI is now helping them build more efficiently. Many thanks to our LPs and founders,” shared Greg Bennett, CFA, Partner at Passion Capital. ### A Broader Trend in European Early-Stage Investing This news comes as early-stage investment across Europe keeps heating up, especially in AI, FinTech, and related infrastructure. It’s not an isolated event. Recent funding rounds show the momentum: - Ralio (London) raised $2.5 million pre-Seed to build an AI-agent payments platform - Trent AI (London) secured $13 million Seed for security infrastructure for agentic AI systems - DFF Ventures (Amsterdam) closed a $82 million fund to back early-stage AI and software startups So Passion Capital’s latest fund fits right into this bigger picture. More and more money is flowing into AI-driven and FinTech-focused ventures across Europe. “We are grateful to our LPs for their continued trust, and to the founders who partner with us from day zero. Passion IV is being invested by Robert, Andrew, Will, Sarah and Greg. If you’re building something ambitious, we’d love to hear from you,” the company said in a press release. ### Passion Capital’s Track Record: 23% Net IRR and Five Unicorns Founded back in 2011, Passion Capital has built an impressive track record. They report a net IRR of 23% and a 2.5x DPI. Over the years, they’ve backed more than 100 companies from Seed stage and produced five FinTech unicorns. The team says they’re committed to using their knowledge and experience to help founders and early-stage teams build ambitious, high-impact, disruptive tech companies. Some of their notable portfolio companies include GoCardless, Tide, Marshmallow, Butternut Box, PolyAI, Lendable, and Monzo. ### A Big Year for Exits and Liquidity 2025 turned out to be a standout year for the firm and its portfolio. There were several exits and liquidity events: - Ravelin - Tillo - Xelix - GoCardless was acquired by Mollie - Significant growth rounds at Attio, PolyAI, Lassie, and Marshmallow All told, Passion Capital distributed $85 million (€72 million) to its LPs. That’s more than the size of any of their previous funds. It’s a clear signal that early-stage investing in AI and FinTech in Europe isn’t slowing down. And Passion Capital is right in the middle of it.