Today marks the launch of the Refugee Venture Fund (RVF), a new UK venture capital fund dedicated exclusively to investing in high-growth businesses founded by refugees.
Launching with £300,000 in initial capital, with plans to increase this to £500,000, the Fund expects to make investments of £50,000–£100,000 in three to five companies. The initial investments are intended to establish a track record ahead of a planned £10 million fund targeting refugee-founded businesses.
Research by The Entrepreneurial Refugee Network (TERN) and Square estimates that 26,500 refugee entrepreneurs already contribute £520 million to the UK economy. The research also identifies an estimated £5.1 billion in potential additional economic activity through business creation, growth, employment, and investment.
TERN, which has spent a decade supporting refugee entrepreneurs, established the fund with support from Atomico. Founding investors identified in the fund's briefing include Dominus, This Day Foundation, and Future Leaders.
TERN previously spun out Skylight Ventures, which provides microloans to refugee entrepreneurs.
Addressing barriers to venture capital
Refugee entrepreneurs can face significant barriers to accessing finance, including limited UK business track records, smaller professional networks, unfamiliarity with the funding ecosystem, and misconceptions among investors.
The September 2026 Cedar Review, based on a survey of 81 refugee entrepreneurs, found that 56 per cent had operated a business before arriving in the UK, while 79 per cent already employed people or planned to do so in the near future.
However, 40 per cent identified access to startup finance as a major challenge.
According to Charlie Fraser, Strategy & Partnerships Director at TERN:
"We've spent over a decade working with refugee entrepreneurs and have repeatedly seen that the problem isn't a shortage of entrepreneurial ability or ambition. It's access to the networks and capital that other founders can take for granted.
The RVF will back the UK's most ambitious refugee founders, which traditional venture funds overlook.
This is about closing a market gap, not lowering the investment bar."
Fund structure and investment strategy
The initial Fund will operate through a special purpose vehicle (SPV), with a dual-class share structure that gives TERN enhanced governance rights to maintain its investment mandate.
Although sector-agnostic, the fund will prioritise high-growth businesses, particularly those operating in software, AI, and climate technology.
Eligible companies must have majority-refugee ownership or leadership, and founders must be UK-based and hold legal refugee status.
The fund will generally seek businesses that have already developed a minimum viable product, conducted a pilot, or demonstrated commercial traction, rather than companies at the idea stage. Its investment criteria also include founders' sector expertise, previous achievements, ability to execute, and a credible acquisition or exit opportunity within five to ten years.
The fund's advisory board includes Reece Chowdhry of Concept Ventures, Matt Penneycard of Ada Ventures, and Amir Rizwan of London Social Ventures.
Lilijan Sulejmanovic, a refugee entrepreneur and diaspora investor with more than 20 years of management consultancy and private equity experience, will also provide operational support.
According to Sukhpal Ahluwalia, investor and founding shareholder:
"Refugees bring a hunger, determination and drive to succeed, and this fund will help them build ambitious businesses even faster.
That means new jobs, more British companies selling to the world, and a stronger UK tech sector.
My family sought refuge here after escaping Idi Amin's rule, so this one is personal for me. As I look towards my retirement to India, I want to help the next generation of founders keep the UK competitive for decades ahead."
Finding founders beyond traditional VC networks
TERN will draw on its existing relationships with refugee entrepreneurs to identify potential investments. The fund also plans to work with university incubators, refugee scholarship networks, enterprise programmes, and diaspora organisations to reach founders who may lack access to conventional venture capital networks.
Portfolio companies will receive 12 months of coaching, including support with investment pitches, alongside access to industry experts, advisers, mentors, and TERN's network of more than 700 refugee founders.
The fund opens for applications on 14 October 2026, with its first investment round expected to close in December and all initial capital scheduled for allocation by March 2027.