SuperSeed secures cornerstone backing for new “Physical AI” fund
London-based venture capital firm SuperSeed has launched Fund III, a seed-stage vehicle focused on “Physical AI”—artificial intelligence designed to operate in real-world environments such as factories, energy networks, and construction sites. The fund has received a cornerstone commitment of up to £50 million from the British Business Bank via its Enterprise Capital Funds programme, a move intended to help attract additional private capital.
Why investors are shifting beyond software
As AI adoption expands, attention is increasingly turning from purely digital applications to systems that can control, optimise, or automate physical infrastructure. These startups often combine software platforms, algorithms, and industrial control systems, and in some cases develop integrated hardware to enable autonomous or semi-autonomous operations in complex settings.
Track record and portfolio focus
SuperSeed was founded in 2018 by former founders Mads Jensen and Dan Bowyer. The firm says it has backed 38 companies across its first two funds, with lead investments including Hive Autonomy, OctaiPipe, Ai Build and All3. Fund III will continue targeting early-stage companies building AI for manufacturing, energy systems, construction, and autonomous infrastructure.
British Business Bank: crowding in capital
Christine Hockley, Managing Director and Co-Head of Funds at the British Business Bank, said SuperSeed has a strong track record of identifying innovators and applying AI to sectors of strategic importance, adding that the commitment is designed to “crowd in” private investment. Mark Sims, Senior Director, Funds, noted the alignment with the Bank’s goal to strengthen technological capability for long-term growth.
Mads Jensen said portfolio companies have progressed from pilots to live production systems with paying enterprise customers—an inflection point he described as central to what Physical AI means in practice.
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