UK-based early-stage media technology venture capital firm GMG Ventures has announced its rebranding to Mercuri, along with the closing of a £50 million ($81.35 million) fund. The fund, led by the British Business Bank through its Enterprise Capital Funds programme, will support startups using artificial intelligence (AI) to revolutionize traditional media models.
The Scott Trust, owner of the Guardian Media Group and Mercuri’s initial investor, also participated in the fund. Other institutional, strategic, and angel investors also contributed.
Mercuri’s founding general partner, Alan Hudson, highlighted the transformative impact of AI on the media technology ecosystem, including content creation, gaming, personalization, music, privacy, education, community, and communication. He emphasized the current market opportunity, stating that the firm’s experienced team will provide valuable support to the startups it invests in.
Despite the rebranding, Mercuri will maintain its focus on leading seed stage investments and will continue to concentrate on the creation, distribution, consumption, and monetization of content and data. However, the firm will place greater emphasis on startups that enhance communication and engagement using AI, both in professional and personal contexts.
Hudson noted that Mercuri has been investing in generative AI businesses since 2018 and that it remains an area of interest. The firm sees generative AI models as encompassing various creator and developer tools, as well as tools for thinking. It also recognizes the significance of the creator economy, where over 200 million creators globally make a living by accessing associated development tools.
In its first fund, Mercuri invested in 21 startups, including the accelerator and incubator Founders Factory. The firm expects to support eight new products while making several follow-on investments each year.
