Key Takeaways
- • The Entrepreneurial Refugee Network (TERN) has launched the Refugee Venture Fund (RVF), a UK venture capital fund investing exclusively in refugee-founded startups, opening with £300,000 in initial capital and a target of £500,000.
- • The fund plans to write cheques of £50,000–£100,000 across three to five companies, with these initial deals intended to build a track record ahead of a planned £10 million fund.
- • TERN established the RVF with support from Atomico, and founding investors include Dominus, This Day Foundation and Future Leaders.
- • Research by TERN and Square estimates 26,500 refugee entrepreneurs contribute £520 million to the UK economy, with up to £5.1 billion in untapped potential.
- • The September 2026 Cedar Review found 40% of surveyed refugee entrepreneurs cited access to startup finance as a major challenge, while 79% already employed people or planned to.
Summary
The Entrepreneurial Refugee Network (TERN) has launched the Refugee Venture Fund (RVF), a UK venture capital fund that invests exclusively in refugee-founded startups, according to Dealroom and Tech.eu. The fund opens with £300,000 in initial capital and plans to grow that to £500,000. It will write cheques of £50,000 to £100,000 across 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. TERN set up the RVF with support from Atomico after a decade of working with refugee entrepreneurs. The initial vehicle is a special purpose vehicle with a dual-class share structure that gives TERN enhanced governance rights to protect its mandate. Founding investors include Dominus, This Day Foundation and Future Leaders. The advisory board features Reece Chowdhry of Concept Ventures, Matt Penneycard of Ada Ventures and Amir Rizwan of London Social Ventures.
The fund 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.
Research by TERN and Square estimates that 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 that 79% of surveyed refugee entrepreneurs already employed people or planned to, yet 40% cited access to startup finance as a major challenge.
Charlie Fraser, strategy and partnerships director at TERN, 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. This is about closing a market gap, not lowering the investment bar."
The RVF targets a specific financing gap, and its success will test whether impact-driven mandates can deliver venture-grade returns.
The initial investments are intended to establish a track record ahead of a planned £10 million fund targeting refugee-founded businesses. TERN set up the RVF with support from Atomico after a decade of working with refugee entrepreneurs. The initial vehicle is a special purpose vehicle with a dual-class share structure that gives TERN enhanced governance rights to protect its mandate. Founding investors include Dominus, This Day Foundation and Future Leaders. The advisory board features Reece Chowdhry of Concept Ventures, Matt Penneycard of Ada Ventures and Amir Rizwan of London Social Ventures.
The fund 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.
Research by TERN and Square estimates that 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 that 79% of surveyed refugee entrepreneurs already employed people or planned to, yet 40% cited access to startup finance as a major challenge.
Charlie Fraser, strategy and partnerships director at TERN, 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. This is about closing a market gap, not lowering the investment bar."
The RVF targets a specific financing gap, and its success will test whether impact-driven mandates can deliver venture-grade returns.
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