Nesta Investments

About Nesta Investments

Nesta Investments is a UK-based impact investment firm focused on supporting innovative enterprises that create positive social and financial value. Founded as part of Nesta, the UK’s innovation agency for social good, the firm is led by a team of experienced investors, entrepreneurs, and experts with deep knowledge across technology, education, health, and sustainability. Nesta Investments partners with startups and growth-stage companies developing transformative solutions that address major societal challenges, including improving education outcomes, tackling obesity, and reducing carbon emissions in homes. The firm invests primarily in seed and Series A rounds and provides capital alongside strategic support to help businesses scale their impact. Nesta Investments is committed to driving real social change while delivering financial returns, with a strong focus on enabling small and medium-sized enterprises to progress toward net zero through investments in ESG and carbon accounting technologies.

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Mission, Goals, and Values

Mission

Nesta Investments’ mission is to invest in high-impact innovations led by outstanding entrepreneurs, aiming to create real and lasting social impact in the UK and globally, while delivering financial returns for investors.

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Goals

Nesta Investments aims to:

• Identify and invest in innovative enterprises that create positive social and financial value.
• Invest primarily in seed and Series A rounds, providing capital and strategic support to help businesses scale their impact.
• Focus on sectors including education, health, sustainability, and technology to address pressing societal challenges.
• Enable small and medium-sized enterprises to progress toward net zero through investments in ESG and carbon accounting technologies.
• Foster partnerships and networks to support portfolio companies and accelerate impact.

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Values

Nesta Investments is committed to social and environmental impact, underpinned by a rigorous approach to impact evaluation and financial performance. The firm supports entrepreneurs who make demonstrable positive change and upholds ethical and responsible investment practices. ESG integration, diversity, and inclusion are core to its values, ensuring investments align with long-term sustainability and positive societal outcomes.

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Founders and Origin Story

Nesta Investments was established as part of Nesta, the UK’s innovation agency for social good, which originated in 1998 with funding from the UK National Lottery. The creation of Nesta was driven by Lord David Puttnam, who served as the founding Chair and was instrumental in setting the organisation’s mission to foster innovation in science, technology, and the arts. Jeremy Newton was appointed as the first Chief Executive, guiding Nesta’s early focus on supporting talented individuals and original ideas. In 2005, Jonathan Kestenbaum became Chief Executive, expanding Nesta’s activities to include capacity-building for UK innovation and leading to the creation of Nesta Investments as a dedicated investment arm.

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In 2012, Nesta transitioned from a public body to an independent charity, broadening its remit to innovation for public benefit. This shift was overseen by Chief Executive Geoff Mulgan, who redefined the organisation’s strategy and operations. Nesta Investments has been led by professionals with deep expertise in venture capital and impact investing.

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The founding leadership’s vision and continued stewardship have established Nesta Investments as a pioneer in UK impact investing, committed to supporting entrepreneurs and addressing major societal challenges through innovation and investment.

Explore the founders’ professional journeys: David Puttnam, Jeremy Newton,  Geoff Mulgan.

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Investment Focus

Nesta Investments focuses on early-stage and growth-stage companies developing innovative solutions that address major social, environmental, and economic challenges. The firm’s core objective is to support scalable ventures that deliver measurable impact in areas crucial to societal progress while also achieving strong financial returns. Nesta Investments partners with companies whose products and services can create lasting positive change for individuals, communities, and the environment.

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Geographic Scope
Nesta Investments primarily invests in companies based in the United Kingdom, with selective investments across Europe. The firm targets ventures operating in or addressing UK markets but also considers opportunities with the potential for broader international impact and scalability. 

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Sectors of Interest
Nesta Investments prioritises sectors where innovation can drive significant societal benefit, particularly:

• Education Technology: Solutions improving educational outcomes and school readiness
• Health Technology: Innovations addressing public health challenges such as obesity and preventative care
• Climate and Sustainability: Technologies reducing household carbon emissions, including energy efficiency and decarbonisation solutions
• Food Technology: Approaches to healthier, more sustainable food systems
• ESG and Carbon Accounting: Tools enabling SMEs to measure, manage, and reduce their carbon footprint

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Investment Criteria

To be considered for investment, companies must demonstrate clear potential for significant, measurable social or environmental impact alongside financial viability. They need to present a credible business model and robust growth strategy, be investor-ready—typically with an MVP or evidence of traction—and fit Nesta Investments’ preferred investment stage, targeting seed and Series A rounds with typical cheque sizes between £500,000 and £1 million . Ventures must align with Nesta’s mission-driven approach, advancing its key goals in education, health, and net-zero carbon outcomes

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Nesta has signalled that from 2025 onwards it will no longer make new seed/Series A investments, and will instead focus on managing and supporting its existing portfolio while continuing venture building through its Mission Studio platform .

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Assessment

Nesta Investments employs a rigorous, multi-stage assessment process to identify and support ventures with high potential for social, environmental, and financial impact. The process is designed to ensure that investments align with Nesta’s mission and meet robust standards for both impact and commercial viability.

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Initial Screening

• Each opportunity is first evaluated for alignment with Nesta’s core missions, such as improving education, advancing health, and enabling net zero.
• Key factors assessed at this stage include the strength of the founding team, the maturity of the product or technology, evidence of market traction, and the potential for measurable impact.
• The business model, affordability, and accessibility of the product or service are also considered to ensure inclusivity and broad benefit.

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Direct Engagement and Evaluation

• Nesta’s investment team engages directly with founders to understand the venture’s business model, growth strategy, and funding requirements.
• This stage assesses whether the venture’s approach is scalable and whether it can generate robust evidence of impact over time.
• Ventures are expected to demonstrate a credible strategy for reaching all segments of their target population and to provide evidence of affordability and accessibility.

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Due Diligence

• Opportunities that progress undergo detailed due diligence, which includes:
  
  • Technical validation of the product or service
  • Market analysis to assess demand and competitive landscape
  • Financial review to ensure sustainability and growth potential
  • Legal assessment to identify risks and compliance issues
• Nesta also evaluates impact risk, using its proprietary Standards of Evidence framework, which ranges from early-stage theories of change to robust, replicable evidence at scale.

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Investment Committee Review

• Proposals that pass due diligence are presented to the investment committee, which rigorously reviews each case.
• The committee considers input from external experts as needed, especially for technical or sector-specific validation.
• Decisions are based on a balanced appraisal of impact potential, commercial viability, and alignment with Nesta’s mission.

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This thorough, iterative assessment process ensures that Nesta Investments backs ventures capable of delivering lasting, scalable impact while meeting high standards of financial and operational performance.

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Notable Portfolio Companies

Nesta Investments has built a diverse portfolio of early and growth-stage companies that are advancing solutions to major social, environmental, and economic challenges. The following companies best exemplify Nesta’s investment goals, with a particular focus on greentech and climate impact. 

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Renewabl

Renewabl is a data-driven platform that streamlines clean energy procurement for businesses. The company enables organisations to achieve 100 percent renewable energy by connecting them directly to wind and solar farms and providing traceable clean energy certificates. Renewabl’s technology allows businesses to match clean energy production to their specific consumption needs, supporting the transition to net zero with transparency and efficiency. Nesta’s investment reflects the platform’s potential to accelerate corporate adoption of renewable energy and bring innovation to the Renewable Energy Certificate market. Visit Renewabl.

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Aira

Aira offers affordable, sustainable, and intelligent heat pumps designed to provide clean energy for homes. The company addresses the challenge of decarbonising domestic heating, a critical step in reducing household carbon emissions in the UK. By making heat pump technology more accessible and cost-effective, Aira supports Nesta’s mission to advance the transition to net zero and lower domestic energy consumption. Visit Aira.

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Naked Energy

Naked Energy develops advanced solar technology that combines photovoltaic and solar thermal systems to generate both electricity and heat from a single collector. This innovation increases the efficiency of solar installations and supports the decarbonisation of buildings, a major source of carbon emissions. Naked Energy’s solutions are helping businesses and households reduce their environmental footprint. Visit Naked Energy.

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These companies illustrate Nesta Investments’ commitment to supporting ventures that deliver measurable environmental impact, drive the green transition, and contribute to a sustainable future for the UK and beyond.

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Funding Sources

Nesta Investments is primarily funded through the endowment of Nesta, the UK’s innovation agency for social good. The endowment, originally established with National Lottery funding, is managed to provide a sustainable and long-term source of capital for Nesta’s investment activities. This structure allows Nesta Investments to focus on patient, mission-driven investment, supporting ventures for as long as needed to achieve both impact and financial objectives.

• Nesta Endowment: The main source of capital is Nesta’s own endowment, valued at around £450 million. The endowment is diversified across global equities, bonds, property, and venture capital, and is managed to generate both income and capital growth while maintaining the fund’s value above a set minimum threshold.
• Third-Party and Co-Investment: Nesta Investments also manages funds that include third-party capital from institutional investors such as foundations and social investment organisations. Notable partners have included Big Society Capital and the Omidyar Network, particularly in the Nesta Impact Investment Fund and arts-focused funds. Nesta often co-invests alongside other institutional and private investors, leveraging additional capital and expertise to support portfolio companies.
• Investment Vehicles: Nesta Impact Investments is the main impact investment arm, managing funds dedicated to early-stage and growth-stage ventures aligned with Nesta’s missions in education, health, and sustainability. Nesta also manages sector-specific funds, such as the Arts & Culture Impact Fund, and supports mission-led startups through initiatives like Mission Studio.
• Governance and Oversight: The Nesta Trust holds and manages the endowment assets, with Nesta as the sole trustee. The Trust Investment Committee oversees asset allocation, risk management, and spending policies to ensure the long-term sustainability of funding for Nesta’s activities. Transfers from the Trust to Nesta are governed by an operational spending rule, ensuring sufficient liquidity and sustainable support for investment and charitable activities.

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Nesta Investments’ funding model is built on a robust endowment, strategic partnerships with institutional investors, and a commitment to patient, long-term capital, enabling the firm to support high-impact ventures and deliver on its mission to drive positive social and environmental change in the UK and beyond.

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Investment Details

Nesta Investments has historically focused on early-stage and growth-stage companies, primarily investing in seed and Series A rounds. Typical initial investments have ranged from £500,000 to £1 million, with the ability to provide up to £4 million in follow-on funding across multiple rounds. This approach allowed Nesta to support high-potential ventures as they scaled, particularly those aligned with its missions in education, health, and sustainability.

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From 2025 onwards, Nesta Impact Investments has paused making new investments into seed and Series A stages. The firm is now concentrating on managing its existing portfolio of around 40 companies, providing follow-on support to the most promising assets to maximise both financial returns and mission impact. Nesta continues to play an active role in venture building through Mission Studio, which creates, spins out, and scales startups addressing the UK’s most pressing challenges.

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Equity

Nesta Investments typically invests on an equity basis, taking minority stakes in portfolio companies. The standard cheque size for initial investments has been between £500,000 and £1 million, with flexibility to follow on with larger sums as companies demonstrate growth and impact. Nesta’s capital is sourced from its own endowment, allowing for patient, long-term investment horizons and the ability to support ventures through multiple funding rounds.

Unlike some traditional venture capital firms, Nesta does not offer EIS or VCT products to external investors. Instead, its funding model is based on its endowment and, in some cases, co-investment with institutional partners such as Big Society Capital and the Omidyar Network. This structure enables Nesta to focus on mission-driven investments without the constraints of external fund cycles.

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Funds

Nesta manages several specialised investment vehicles, including:

• Nesta Impact Investments: The main impact investment arm, previously dedicated to early-stage and growth-stage ventures aligned with Nesta’s missions in education, health, and sustainability. As of 2025, this fund no longer makes new early-stage investments but remains active in managing its portfolio.
• Arts & Culture Impact Fund: A sector-specific £23 million fund supporting social enterprises in the UK’s creative industries through repayable finance.
• Mission Studio: A joint venture with Founders Factory, focused on building and scaling mission-led startups from the pre-seed stage. This remains Nesta’s primary channel for early-stage innovation creation.

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Previous funds have included third-party capital from institutional investors, but Nesta’s most recent £50 million fund, launched in 2022, is sourced entirely from its own endowment and is dedicated to direct investments and venture building via Mission Studio.

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Recent Developments

In 2024, Nesta Impact Investments had a record-breaking year, investing in eight mission-aligned companies and providing follow-on capital to four existing portfolio companies. Notable recent investments include Aira, which develops affordable, sustainable heat pumps, and Resi, which uses AI to support low-carbon home renovations. Nesta also achieved a successful exit from Featurespace, an AI-driven fraud detection company, following its acquisition by Visa Inc.

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As of 2025, Nesta has formally shifted its strategy to focus on maximising the impact and value of its existing portfolio, rather than making new seed or Series A investments. The organisation remains committed to supporting innovation through Mission Studio and continues to offer strategic guidance, capital, and network access to mission-driven ventures across the UK.

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Impact

Nesta Investments is committed to delivering measurable social and environmental impact alongside strong financial returns, embedding responsible investment principles across its portfolio and operations. The firm’s mission is to support ventures that create positive change for people, communities, and the environment, with a focus on sectors such as climate tech, health tech, education, and sustainable infrastructure.

• Impact Measurement and Reporting: Nesta Investments uses a robust impact measurement framework aligned with international standards, including the United Nations Sustainable Development Goals (SDGs). Each investment is assessed for its potential to deliver significant, quantifiable outcomes in areas such as carbon reduction, educational attainment, and public health. The firm applies its proprietary Standards of Evidence framework to evaluate and track the impact of portfolio companies, ensuring ventures deliver real-world results.
• ESG Integration: Environmental, social, and governance (ESG) considerations are integrated into every stage of the investment process, from initial screening and due diligence to ongoing portfolio management. Nesta supports companies in adopting ESG best practices, including carbon accounting, diversity and inclusion, and responsible governance.
• Net Zero Commitment: Nesta prioritises investments in technologies and solutions that help small and medium-sized enterprises progress toward net zero. The firm actively seeks out ventures in ESG and carbon accounting, energy efficiency, and decarbonisation, supporting the UK’s transition to a low-carbon economy.
• Sector Focus: Investments are concentrated in areas where innovation can drive the greatest societal benefit, such as education technology, health technology, food systems, and climate solutions.
• Exclusion Policy: Nesta maintains a strict exclusion policy, avoiding investments in sectors such as tobacco, controversial weapons, and activities that conflict with its mission and values. Portfolio companies are required to uphold high standards of governance, social responsibility, and environmental stewardship.
• Collaborative Support: Nesta’s investment team works in partnership with founders to embed impact considerations into business strategy and operations, providing access to networks, expertise, and resources to maximise both financial and societal returns.

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Nesta Investments’ approach ensures that every investment contributes to long-term, sustainable impact, supporting ventures that address the UK’s most pressing challenges in education, health, and climate.

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Community

Nesta Investments actively cultivates a dynamic community of founders, investors, and sector experts across the UK and beyond. The firm brings together a network of experienced professionals, mission-driven entrepreneurs, and industry leaders who share a commitment to supporting ventures that deliver positive social and environmental impact.

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Nesta Investments hosts regular events, including Founders’ Office Hours, workshops, and informal networking sessions that connect early-stage entrepreneurs with Nesta’s investment team and sector specialists. These gatherings create opportunities for founders to receive feedback, build relationships, and access tailored support as they develop and scale their businesses. Nesta also participates in accelerator programmes such as EDUCATE for edtech and the NHS Innovation Accelerator for healthtech, providing mentorship and guidance to emerging ventures.

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Portfolio founders benefit from access to a wide network of mentors, peer learning opportunities, and industry leaders who offer advice and support throughout their growth journey. Initiatives like the Creative Business Mentor Network match founders with seasoned executives to unlock business potential and foster long-term success.

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The Nesta community is kept informed and engaged through newsletters, public updates, blogs, and research publications, sharing portfolio news, investment opportunities, and the latest developments in social innovation and impact investment. By bringing together like-minded individuals and fostering an environment of collaboration, mentorship, and support, Nesta Investments empowers its network and portfolio companies to drive meaningful progress in education, health, sustainability, and beyond.

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The Team

Nesta Investments is led by a highly experienced team with deep expertise in venture capital, impact investing, technology, and social innovation. United by a shared commitment to supporting ventures that deliver positive social and environmental impact, the team combines backgrounds in investment, entrepreneurship, public policy, and sector-specific leadership. Together, they provide founders with strategic guidance and access to a broad network across the UK and beyond.

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Leadership and Key Team Members:

• Alex Hook – Director, Nesta Impact Investments
  Alex Hook serves as Portfolio Director, overseeing Nesta’s suite of direct investments in early-stage UK technology companies that align with its missions in education, health, and sustainability. With over 20 years of VC experience—from seed to Series A/B—he leads follow-on investment decisions and portfolio management, bringing strong skills in scaling mission-led ventures.
• Tolly Humphreys – Associate Investment Director
  Tolly Humphreys works on transactions across Nesta’s impact missions, with a particular focus on sustainability and climate tech. Before joining Nesta in 2022, Tolly spent six years at ClearlySo, an impact investment bank, where he specialised in capital raises for companies and funds in financial inclusion, renewable energy, fintech, healthcare, and climate technology. Tolly is also a Board Observer for Nesta Investments at MEL Science.
• Meera Shah – Portfolio Manager
  Meera Shah supports Nesta’s investments in health and climate. She previously worked in Nesta’s Centre for Collective Intelligence Design and has experience delivering technology transformation programmes at Deloitte. Meera also contributed to sustainability projects with the climate studio ventures team.

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Other Key Team Members:
Nesta Investments also includes sector specialists, investment managers, and analysts focusing on technology, education, health, and sustainability. These professionals work closely with portfolio companies to offer mentorship, business development support, and network access.

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FAQs

1. What is Nesta Investments’ investment strategy?
   Nesta Investments focuses on supporting high-impact, innovative companies that address major social and environmental challenges. The strategy targets scalable solutions in areas such as education, health, and sustainability, aiming to deliver measurable positive outcomes alongside financial returns. Nesta prioritises ventures that align with its mission-driven approach, particularly those advancing school readiness, tackling obesity, and reducing household carbon emissions. From 2025 onwards, Nesta is not making new seed or Series A investments but continues to support its existing portfolio and build new ventures through Mission Studio.
2. What sectors does Nesta Investments invest in?
   Nesta Investments has invested across several core impact areas:

• Climate tech and sustainability (e.g., decarbonisation, energy efficiency, net zero solutions)
• Health tech (e.g., obesity prevention, healthy ageing, digital health)
• Education technology (edtech)
• Food tech (e.g., healthier food systems)
• ESG and carbon accounting tools for SMEs
  
  

These sectors reflect Nesta’s focus on innovations that improve quality of life and reduce environmental impact.

3. What does Nesta Investments look for in founders?
   Nesta seeks mission-driven founders with a clear vision for solving urgent societal challenges. The firm looks for entrepreneurs who demonstrate credibility in their market, authenticity about their impact, and a commitment to both commercial success and measurable social or environmental outcomes. Nesta actively encourages applications from diverse founding teams and has set goals to increase representation from minority and disadvantaged groups in its portfolio.
4. What stage does Nesta Investments invest in?
   Historically, Nesta Investments focused on seed and Series A rounds, typically investing in early-stage companies with proven concepts and some market traction. As of 2025, Nesta is not making new investments at these stages but continues to provide follow-on support to its existing portfolio and to create new ventures through Mission Studio.
5. What is the typical investment size?
   Nesta Investments typically invested between £500,000 and £1 million per company at the seed and Series A stages, with the ability to provide up to £4 million in follow-on funding across multiple rounds.
6. What support is available to portfolio companies?
   Beyond capital, Nesta offers strategic guidance, sector expertise, and access to a broad network of professionals in education, health, sustainability, and technology. Portfolio companies benefit from mentoring, business development support, and help with impact measurement, ESG best practices, and scaling challenges. Nesta’s team leverages its deep domain knowledge and extensive networks to help founders maximise both impact and commercial success.
7. Where is Nesta Investments based?
   Nesta Investments is headquartered in London, UK, at 58 Victoria Embankment, London, EC4Y 0DS. The organisation also has teams in Scotland and Wales and works with partners across the UK and internationally.
8. When was Nesta Investments founded?
   Nesta Investments was established as part of Nesta, which was founded in 1998 as the UK’s innovation agency for social good. The investment arm has evolved over time, with a dedicated impact investment strategy since 2012.
9. How can I apply for funding or get in touch?
   Founders can contact Nesta Investments or submit an application through the official website. While Nesta is not currently making new seed or Series A investments, it welcomes enquiries from founders of innovative, high-impact businesses that align with its mission. Updates on funding opportunities and news are shared via newsletters and the Nesta website.

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Contact

Are you an innovative founder developing climate tech or high-impact solutions in technology, health, education, or sustainability? Discover how Nesta Investments can support your journey by visiting: Nesta Investments Website.

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Stay updated with the latest news, events, and opportunities by following Nesta on LinkedIn: Nesta LinkedIn.

Explore more UK opportunities for greentech investment at Adopter’s Greentech Investors Map.

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