Smokeless Future with £200M Wellbeing Fund

In a bold move signaling its commitment to a "smokeless world," British American Tobacco's corporate venture arm, Btomorrow Ventures (BTV), has unveiled Fund II, a £200 million ($254 million) initiative aimed at investing in wellbeing and stimulation sectors. ​

A Strategic Shift Beyond Nicotine

BTV's latest fund underscores BAT's strategic pivot from traditional tobacco products toward a diversified portfolio emphasizing health and wellness. Fund II is set to invest in later-stage startups—specifically those in Series B and Series C rounds—that offer functional benefits aligning with consumers' evolving preferences.

"By focusing the investment in wellbeing and stimulation, we are committed to driving BAT’s Smokeless World agenda," stated James Barrett, BAT’s Director of Business Development.

Building on a Foundation of Innovation

Since its inception in 2020, BTV's initial £150 million fund has cultivated a diverse portfolio of 28 companies. Notable investments include:​

• AWAKE Chocolate: A Canadian brand offering functional caffeinated chocolates designed for on-the-go consumers. ​

  
  

• Moment: A U.S.-based functional drink brand that provides adaptogen-infused beverages aimed at enhancing mental clarity and reducing stress. ​

  
  

• FlexSea: A UK company developing innovative, compostable biopolymer materials derived from seaweed and other sustainably sourced products. ​

  
  

A Portfolio Reflecting a Healthier Tomorrow

BTV's investment strategy reflects a commitment to fostering brands that prioritize consumer wellbeing. The portfolio spans various sectors, including functional foods, beverages, and sustainable technologies, all aimed at integrating into consumers' daily routines as healthier alternatives. ​

Implications for Startups and the Industry

For startups operating in the health, wellness, and stimulation spaces, BTV's Fund II presents a significant opportunity. The focus on later-stage investments indicates a readiness to support companies poised for rapid scaling and market penetration.​

This strategic shift by a legacy tobacco company also mirrors broader industry trends, where traditional firms are diversifying to align with changing consumer preferences and regulatory landscapes.​

Btomorrow Ventures' launch of Fund II marks a pivotal step in British American Tobacco's transformation journey. By investing in wellbeing and stimulation-focused startups, BTV is not only expanding its portfolio but also contributing to a future where consumer health and innovation take center stage.