British Business Bank backs Wayve with £25m investment

The British Business Bank has invested £25 million in autonomous driving company Wayve as part of a $1.2 billion Series D funding round backed by venture funds, pension investors, technology groups and carmakers.

The investment is among the bank's largest direct equity deals and reflects a growing focus on later-stage funding for UK technology companies as they scale.

The Series D round was led by Eclipse, Balderton and SoftBank Vision Fund 2. New investors included Ontario Teachers' Pension Plan, Baillie Gifford, Icehouse Ventures and Schroders Capital, alongside other institutional backers.

Microsoft, Nvidia and Uber also participated, as did automotive manufacturers Mercedes-Benz, Nissan and Stellantis.

AI focus

Wayve develops AI foundation models for autonomous driving. It describes its approach as "embodied AI" and positions its software as a core layer for vehicle autonomy across multiple markets.

Founded in 2017 and headquartered in the UK, Wayve has pursued an end-to-end AI approach that relies on data-driven learning rather than rule-based systems and detailed mapping.

Investors highlighted Wayve's plan to license its software rather than run its own fleets in each city, arguing this supports large-scale deployment through partnerships with vehicle manufacturers and mobility platforms.

The company says its technology spans advanced driver assistance and higher levels of autonomous driving. It uses industry terms L2+ for "hands-off" driving with driver supervision and L3/L4 for "eyes-off" driving, where the system takes on more of the driving task.

Public backing

The British Business Bank increased its financial capacity to £25.6 billion last year and changed how it invests in scaling companies. It has used the larger balance sheet to increase the number and size of direct investments.

The bank first gained exposure to Wayve through its investment in Balderton's Fund VI in 2019. It began co-investment activity in 2021 and says it has since built a portfolio of 45 companies.

Leandros Kalisperas, Chief Investment Officer at the British Business Bank, said: "We are making larger investments in high-growth companies like Wayve to support the UK's most promising businesses to start, scale, and stay in the UK."

"Companies like Wayve deserve deeper domestic backing, but too often UK institutional capital is absent from later-stage funding rounds. Alongside looking to support larger growth funds, the Bank is stepping up and investing in these companies, both to encourage UK institutions to invest alongside us and to give the UK taxpayer exposure to the country's highest-potential tech champions," he added.

The investment also drew comment from the government. Business Secretary Peter Kyle said: "Today's investment is a big vote of confidence in the growth potential of Wayve, a great British business that is scaling here and expanding across the world. This funding round will cement the future for the firm, securing jobs, boosting growth and the economy."

Commercial plans

Wayve has signalled a shift towards commercial deployment, starting with robotaxi trials and moving towards consumer vehicles with advanced driver assistance features.

It said consumers will "experience Wayve-powered robotaxis through commercial trials with Uber" from 2026. Buyers will be able to purchase passenger vehicles equipped with its AI Driver from 2027, starting with L2+ "hands-off" features.

George Mills, Investment Director at the British Business Bank, said: "It's difficult to imagine a future without self-driving cars. Wayve has emerged as a global leader in this race and is at the forefront of innovation with its AI licensing model. This new funding round will support Wayve in developing its technology, allowing it to go toe-to-toe with others in the autonomous driving market."

Wayve plans to work with carmakers to integrate its software into production vehicles. It has previously said it signed a production partnership with Nissan to integrate its AI Driver into Nissan's next-generation ProPILOT driver-assistance systems, with mass-produced vehicles expected to launch in Japan and other markets from fiscal year 2027.

"With $1.5 billion secured, we are building for a total addressable market that spans every vehicle that moves. Autonomy will not scale through city-by-city robotaxi deployments alone. It will scale through platforms that automakers can trust, deploy globally and improve continuously. This investment accelerates our path to widespread commercial deployment and positions us to build the autonomy layer that will power any vehicle everywhere," said Alex Kendall, Co-founder and CEO of Wayve.

The new funding round will support further development of Wayve's end-to-end AI platform and a broader commercial roll-out through partnerships in mobility services and vehicle manufacturing.