London-Based Venture Capital Firm SuperSeed has Launched Fund III to Support “Physical AI” Startups

SuperSeed, backing technical founders bringing AI to the physical world, led by Mads Jensen and Dan Bowyer, has launched Fund III, a seed-stage fund focused on Physical AI startups. The fund has secured a cornerstone commitment of up to £50 million from the British Business Bank, which invested through its Enterprise Capital Funds programme.

Christine Hockley of British Business Bank said SuperSeed’s backing will attract private capital to support applied physical AI companies improving critical infrastructure efficiency.

Artificial intelligence is moving beyond software into real-world sectors like manufacturing, energy, and construction, driving investor interest in “physical AI.”

Christine Hockley of British Business Bank said SuperSeed’s strong AI focus will attract private capital to back physical AI startups, improving critical infrastructure efficiency.

Founded in 2018 by Mads Jensen and Dan Bowyer, SuperSeed focuses on backing Physical AI startups and has invested in 38 companies, including Hive Autonomy, OctaiPipe, Ai Build, and All3.

British Business Bank said the new fund supports long-term economic growth, with Mark Sims highlighting its role in advancing real-world AI adoption across the UK.

Focus on AI for real-world industries.

SuperSeed’s new fund will back early-stage startups building AI for manufacturing, energy, construction, and autonomous infrastructure, covering the full physical AI stack from software to integrated hardware.

British Business Bank, the UK’s largest investor in venture funds, is anchoring the fund through its Enterprise Capital Funds programme, which has supported 52 funds and over £2.7B in capital to date.

Mads Jensen noted the shift from pilot projects to live, revenue-generating AI systems across industrial sectors, highlighting growing real-world adoption.