Shares in Molten Ventures PLC (LSE:GROW) climbed almost 2% to 695p on Monday, adding 12p, after the venture capital firm announced the first close of its new Growth Fund at £175 million.

The rally came as Molten confirmed the British Business Bank had committed £75 million as a cornerstone investor in the new fund.

Molten Ventures, which invests in high-growth technology companies across Europe and the UK, said it had committed the remaining £100 million of the first close.

The London-listed firm is targeting a final fund size of £350 million, with additional third-party investors still being sought.

Ben Wilkinson, chief executive of Molten Ventures, said the British Business Bank’s backing was “a strong endorsement” of the company’s strategy.

The Growth Fund will focus on Series B and later-stage investment rounds, targeting sectors including space, artificial intelligence, fintech, quantum computing, hardware and deep technology.

Molten Ventures has completed more than 40 growth-profile deals and invested over £700 million in the past ten years.