UK pension-backed fund backs four deeptech startups including quantum and battery firms

Pension capital flows into UK deeptech

Scottish Widows, Aberdeen Investments, and IP Group have announced investments from the CG Scottish Widows Growth LTAF, a fund structured to connect UK workplace pension savings with high-growth science and technology companies. The fund is among the first UK pension schemes to actively allocate member capital to venture growth, targeting sectors such as quantum computing, battery technology, and genomics.

The initial investments support four UK-based deeptech firms: Oxford Quantum Circuits, Quantum Motion, Nyobolt, and Genomics Limited. These companies are developing commercially available quantum systems, silicon-based quantum computers, ultra-fast-charging battery technology, and AI-driven genomics for healthcare.

Fund aims to fill UK funding gap

According to Scottish Widows and Aberdeen Investments, the fund is designed to address a critical constraint in the UK innovation economy: the lack of follow-on funding for companies ready to commercialise and expand. By directing pension capital into these startups, the fund aims to support stronger retirement outcomes for members while enabling growth in high-potential sectors.

Aberdeen Investments has tasked IP Group with managing a UK Venture growth portfolio within the fund. The model is intended to scale over time, increasing long-term capital flow into UK businesses.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

This initiative marks a shift in how UK pension funds engage with venture growth, particularly in deeptech. For founders in quantum, battery, and genomics sectors, it signals a potential new source of late-stage funding—one that is less reliant on traditional VC cycles and more aligned with long-term horizons. If successful, the model could encourage other institutional investors to explore similar structures, broadening the funding pipeline for UK startups. However, it also raises questions about how these investments will perform under pension risk frameworks, which may influence future allocations.

Key takeaways

• This fund signals a growing trend of institutional capital flowing into UK deeptech, particularly in quantum, battery tech, and genomics.
• UK startups in these sectors may see increased access to late-stage funding, reducing reliance on traditional venture capital.
• The model could inspire similar pension-backed initiatives, expanding long-term capital for high-growth businesses.

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