TERN launches £300,000 UK venture fund for refugee founders
What's the deal? The Entrepreneurial Refugee Network (TERN)Dealroom has a profile for this one. Try Dealroom → has launched the Refugee Venture Fund (RVF)Dealroom has a profile for this one. Try Dealroom →, a UK venture capital fund investing exclusively in refugee-founded startups. It opens with £300,000 in initial capital, with plans to grow that to £500,000. The fund will write cheques of £50,000–£100,000 across three to five companies.
What's the endgame? These first deals are meant to build a track record ahead of a planned £10 million fund targeting refugee-founded businesses. TERN established the RVF with support from Atomico after a decade spent working with refugee entrepreneurs.
Who's backing it? Founding investors include DominusDealroom has a profile for this one. Try Dealroom →, This Day FoundationDealroom has a profile for this one. Try Dealroom →, and Future LeadersDealroom has a profile for this one. Try Dealroom →. The advisory board features Reece Chowdhry of Concept VenturesDealroom has a profile for this one. Try Dealroom →, Matt Penneycard of Ada VenturesDealroom has a profile for this one. Try Dealroom →, and Amir Rizwan of London Social VenturesDealroom has a profile for this one. Try Dealroom →.
How it works: The initial fund runs through a special purpose vehicle with a dual-class share structure that gives TERN enhanced governance rights to protect its mandate. It is sector-agnostic but prioritises software, AI, and climate technology. Eligible companies must have majority-refugee ownership or leadership, UK-based founders with legal refugee status, and a minimum viable product, pilot, or commercial traction.
Why now? Research by TERN and SquareDealroom has a profile for this one. Try Dealroom → estimates 26,500 refugee entrepreneurs already contribute £520 million to the UK economy, with up to £5.1 billion in untapped potential. The September 2026 Cedar Review found 79% of surveyed refugee entrepreneurs already employed people or planned to, yet 40% cited access to startup finance as a major challenge.
What they said: "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," said Charlie Fraser, strategy and partnerships director at TERN. "This is about closing a market gap, not lowering the investment bar."
The signal: The RVF targets a specific financing gap for a group that research suggests brings experience and job creation but faces structural barriers to capital. Starting small to prove returns before scaling to £10 million is a familiar playbook — one that will test whether impact-driven mandates can deliver venture-grade results.
Read more: Tech.eu
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