Episode 1 Ventures Research
Investment Thesis
Episode 1 is a London-based early-stage venture capital fund investing exclusively in B2B software companies at the pre-seed and seed stages. Founded in 2010, the firm has developed a clear thesis: back ambitious founders solving real problems that "must exist" and support them intensively through the pre-seed to Series A journey. The fund deliberately avoids B2C and hardware, focusing on defensible software businesses where founders have deep technical or domain expertise.
Episode 1 looks for "go-all-in" entrepreneurs — founders willing to quit their day jobs to pursue an ambitious vision. The ideal founder is experienced in their sector, capable of hiring world-class talent, data-driven in their decision making, and has a demonstrated ability to execute at speed. The fund has developed proprietary data-driven sourcing tools that scan signals from LinkedIn, Product Hunt, GitHub, and similar platforms, with approximately one-quarter of recent investments sourced this way.
Stage Focus
The fund operates strictly at pre-seed and seed stages, typically entering as the first institutional investor. Episode 1 retains pro-rata rights and follows on through Series A but does not usually invest beyond that milestone. The firm's primary objective is helping portfolio companies reach a successful Series A — and it has achieved a 73% Series A conversion rate from its prior fund, a standout metric in early-stage VC.
Check Size
Episode 1 writes cheques between £250,000 and £2,000,000. For lead investments, they target 10–20% ownership. For follower positions, they take 5–10% ownership. The firm backs approximately 10–12 companies per year.
Sector Focus
The core focus areas are AI and infrastructure, health and TechBio (computational biology, synthetic biology, quantum computing), developer tools, open source software, and marketplaces. The fund has increasing conviction in AI-native businesses and remains active in regulated sectors like fintech, legaltech, and supply chain. Notable portfolio concentrations include enterprise workflow automation, data infrastructure, security and compliance, and B2B fintech.
Geographic Focus
Episode 1 invests primarily in UK-based companies, with selective investment in US and European startups that have substantial UK operations or roots. The firm is headquartered at 112–116 New Oxford Street, London WC1A 1HH and is FCA regulated (reference number 604481).
Fund History & Status
Fund III closed in February 2024 at £76 million ($95M), the firm's largest fund to date. Limited partners include the British Business Bank (via British Patient Capital, which committed £20M), Molten Ventures, and approximately one-third founder-LPs including Alex Chesterman (Zoopla), Aidan Corbett (Webgains), and Aron Gelbard (Bloom & Wild). The fund is actively deploying at a pace of 10–12 investments per year, with 9 investments made in 2025 and at least 1 follow-on in early 2026. Total portfolio spans 65+ active companies and 166+ total investments across all funds.
Decision Process
Episode 1's process is notably fast — typically within a fortnight of first meeting, and sometimes as quick as two days. The journey involves an initial meeting with one team member, followed by 1–3 additional meetings with remaining investment committee members before a decision is reached. Cold outreach is accepted via the "Submit your Deck" mechanism on their website.
Portfolio Highlights
Notable active portfolio includes Robin AI (AI-powered legal services), QuestDB (ultra-fast time series database), Superlinked (vector embeddings infrastructure), Carwow (leading car marketplace), Omnipresent (global employment-as-a-service), StackOne (unified integration API), Attest (customer research platform), Risk Ledger (supply chain compliance), Lawhive (AI legal marketplace), Mimica.ai (process automation), and PandasAI (LLM-powered Python tooling).
Notable exits include: Fatmap (3D terrain mapping, acquired by Strava, 2023), SimplyCook (meal kit service, acquired by Nestlé, 2021), Passfort (digital KYC compliance, acquired by Moody's), Aimbrain (biometric authentication, acquired by BioCatch), and Touch Surgery (surgical AI, acquired). The total capital raised by portfolio companies exceeds £170M.
Team
The fund is led by five General Partners:
- Hector Mason — Serial founder, Forbes 30 Under 30, host of the Riding Unicorns podcast. Brings founder empathy and a strong network across the UK startup ecosystem.
- Adam Shuaib, PhD — Cambridge PhD. Leads data-driven investment efforts with a focus on early-stage AI deals. Strong quantitative background with experience in computational methods.
- Simon Murdoch, PhD — 20+ years investing in London. Founding partner who previously founded Bookpages, acquired by Amazon (which became Amazon.co.uk). Deep experience in marketplace and software businesses.
- Paul McNabb — Serial entrepreneur turned investor. Brings operational depth and a founder perspective to portfolio support.
- Adrian Lloyd — Oxford and Stanford alumnus with global investment experience. Swiss-British background with international network.
The investment team also includes Principal Millan Suri, Investors Carolina Monck (Synthetic Biology PhD) and Nuan Zhang, and Venture Partner Megha Prakash (tech founder and AI investor with M&A background). Paul Fifield serves as Entrepreneur in Residence, specializing in GTM and US expansion.
Founder Preferences
Episode 1 backs founders with relevant sector experience, technical depth, and the ambition to build category-defining companies. They value data-driven operators who know their customers intimately and can hire exceptional talent. The firm explicitly supports the "0 to 1" journey — helping founders with customer introductions, investor connections, GTM guidance, and hiring support through the episode1.com/portfolio network.