Roberto Bonanzinga

"Funding Collapse sends investment in start-ups to six year low" The Times today covering the shocking stats that VenturePath uncovered, with our partner Beauhurst. Great quotes from supporters Michael Moore CEO, BVCA and Julian David CEO, techUK. * UK VC funding at Series A is -44% from last year, and worsening * Q3 24 is down a staggering 57% from Q2, itself down from Q1 * 9 in 10 seed funded startups cannot access Series A VC funding, the next 'rung on the funding ladder' * Just 32 future scaleup companies across the whole of the UK were able to access their first VC funding round in Q3...a 6 year low * Half a billion less capital is going in to UK scaleups at Series A, than just 2 years ago! As the UK scaleup funding gap widens, we are losing ground against other countries, at both startup stage (a position the UK worked hard to achieve, since 2011), and for scaleup support. OECD data: 13th in the world for scaleup support, and that's before Series A funding access dried up. I get that its confusing. Another report (BBB, Nations & Regions) released this week spoke of positive trends in private investment, stating "The data for Q2 2024 shows that investment value has continued to grow". Great, I love to see optimistic data. But under analysis that bundles venture with private equity (later stage), where a few megadeals skew the numbers. Otherwise the exact opposite is true. Our independent research here, for the UK ScaleUp Investment Mission, is laser beam focussed on Series A. The funding round where companies move from the c.1m startups launched each year, through the 2,179 that access seed funding, into the rarefied category of being recognised as future scaleups, attracting Series A funding (£2-10m). The UK venture landscape is currently funding just 248 pa of these companies, and declining. We've been sharing this urgent call for support with the new Government since the day after the election. I've personally met with several Ministers, and spoke to all the relevant Government departments. I will shamelessly repeat loudly what is at stake. UK scaleup funding at Series A has nearly halved in a year, and continues to decline steeply, more than halving in the last quarter. VenturePath developed The UK ScaleUp Investment Mission to convene the scaleup support ecosystem and £7bn of funders to help address this problem, to improve nationwide access to VC investment, and create more venture-backed successes. We have clear support, clear recommendations to reverse this decline in UK scaleup investment, and have made a clear ask of Government for participation in this, to ensure immediate action is taken to create the conditions for success for UK scaleups, ensuring the focus on growth isn't undermined by lack of capital, or equitable access to it. Government decision makers, we'd love your interest, to progress to action. HM Treasury: Rt Hon Rachel Reeves Spencer Livermore James Murray & CC Poppy Gustafsson (welcome to the debate).

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I couldn’t be prouder to be a Venture Partner at Isomer Capital (aka the best European FoF - at least for me) as we just announced the launch of our pioneering £100m secondaries fund. This fund is dedicated to acquiring stakes from LPs in various VC funds, tapping into a massive and largely unexplored market. 🌟 Key Highlights: - Focused Investment: Primarily targeting stakes in VC funds, with selective investments in private companies. - Robust Funding: Already over 20% funded, thanks to strong support from Nordic family offices and a German foundation. - Market Potential: With a growing number of private tech companies and a VC liquidity crunch, Europe's VC secondaries market is poised for rapid growth. - Track Record: This isn’t Isomer’s first foray into the secondaries market. As a firm we’ve done several secondaries deals with portfolio companies and VC firms, including early-stage VC Seedcamp (in 2021) and mobility giant Bolt (in 2023). - Expert Team: Welcoming the amazing Omolade (Rachel) A., formerly of Coller Capital, as a principal to lead this initiative. 💡 Investment Strategy: - 65-75% of the fund will buy "LP interest" stakes in VC funds. - 15-25% will be directed towards stakes in companies. - Up to 15% reserved for flexible investment opportunities. 📈 Looking Ahead: We're targeting returns of 2-3x, with significant distributions expected in the next 4-7 years. As one of the few players in this space, we're not just participating in the market—we're driving it forward. Read all about it here: https://lnkd.in/dc7sbC3G #VentureCapital #SecondariesFund #EuropeanVC

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The new pronouncements on AI are a big step in the right direction by Keir Starmer, but won't be successful unless the whole of government aligns policy making to optimise for technology and for growth, Rt Hon Rachel Reeves and HMRC included. https://lnkd.in/dcA5tN9d

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Thinking 🤔 out loud - one of the biggest beneficiaries of GenAI in the enterprise and agentic worfklows will be software PE firms There are so many beaten down SaaS 🦄 they can buy on the cheap and with a GenAI playbook can now reduce costs even more dramatically And as the AI gets better and moves from just the easy stuff like support and code to more complex workflows, the profitability created is going to be 📈 We are going to see a ton of PE buyouts in the months ahead...

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We had the pleasure of speaking to the inimitable Gordon Sanghera, co-founder and CEO of Oxford Nanopore Technologies, valued at around $6.8bn in 2021. Gordon somewhat accidentally ended up as an entrepreneur, breaking the conventional VC wisdom around 'born founders'. The technology is wild - democratising access to genomic sequencing giving us a new understanding of living organisms. In the episode of Riding Unicorns, we cover: 00:00 Defining Entrepreneurship 00:55 Understanding Oxford Nanopore's Technology 06:10 Gordon's Journey to Founding Oxford Nanopore 12:09 Commercialization Challenges and Strategies 16:27 Building a Strong Founding Team 20:55 Navigating the Ups and Downs of Deep Tech 25:54 Innovative Applications of Nanopore Technology 28:57 Company Culture and Operational Insights 35:05 Attracting Talent in a Competitive Market 37:22 The IPO Experience and Future Outlook https://lnkd.in/eQZVSGeK

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Taavet Hinrikus and I made the Financial Times Due Diligence email. https://lnkd.in/ez2AuGQx One 'unintended consequence' is that if there is a 45% tax on carry and CGT (raising £40m per year, remember) it for all intents and purposes closes the door on new VCs in the UK. Especially started by teams from non-traditional backgrounds. To meet the GP commit, you need to be already part of the 'wealthy' as you cannot rely on the value you create - nearly half of it will disappear - to fund it. We have both had extremely successful startups which are few and far between. The smaller number of new VCs will therefore more likely increasingly be for people who have inherited the capital or can draw it from their already rich family. Probably not want they have in mind with this policy.

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Want a deeper glimpse into how people are feeling in the run-up to the UK elections? 🇬🇧 This whitepaper reveals the real human emotions behind the numbers. 🔍 Using Prolific’s pool of 200k+ participants and Voiceform's #AI technology, this poll captures authentic responses on a range of key political issues. It’s got extensive insights into how the UK truly feels about: * The current Conservative Party leadership under Rishi Sunak. * Keir Starmer’s opposition Labour Party and its changing direction. * Which policies and themes register as most critical for voters. * What it could take to sway voting intentions at this stage. You can download the full whitepaper here: https://lnkd.in/e9qSTQQd #UKgeneralelection #PoliticalInsights #UKPolitics

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What is interesting in this sifted piece re the Babylon AI founder and his new project is they miss out on how he refused to allow clinical & evidence-based review of Babylon. It was fundamentally viewed as unsafe (couldn't tell the difference between MI and upper GI symptoms) https://lnkd.in/dX-S9Y22

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Ever wonder what its like to run a Private Equity fund? Now you have the chance to follow along with successful investment managers by participating with Fund Launch Partners. Join me and Lincoln Archibald and next week for the Third Thursday @ Three to hear about direct investment opportunities with General Partnerships in the one of the fastest growing portfolio investment sectors. Pick up a free ticket here: https://lnkd.in/dd2yzxDd #HolyGrailofInvesting #GPOpportunities #FundLaunch #Alternatives

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Today we have a superb episode with an absolute legend, Alan Patricof, Co-Founder of Primetime Partners, Greycroft, and Apax Partners. It’s hard to explain just how important Alan has been for tech and VC. He’s one of the true pioneers in venture capital worldwide, having started his first VC firm in the 1970s, Alan Patricof and Associates, which later became Apax Partners and currently has over ~$80Bn AUM. Alan is an inspiring figure, not only because of his success in the business world but also because of his vitality and contagious optimism. He joined us a day after his 90th birthday and candidly, he had more energy than most people I know. We recorded live on stage at Rise, created by Barclays in NYC for the 2024 Gilgamesh Ventures Summit, an annual meeting where we gather over 150 limited partners, founders, investors, and friends for a series of events and discussions about the future of tech and financial services. In this episode, we discuss: - The early days of Venture Capital and Tech in the 1970s and beyond - Alan grew up in NYC and built his career in NY – how was the city back then? - Building primetime partners to invest in the fastest growing market, people over 60 - Staying healthy. How Alan keeps fit, focused and is closing deals at 90 Years Old - Why your reputation is all that matters in this business… and a lot more! Special thanks to Morgan Borer, Jessica Schaefer, Carlee Snyder, Courtney Dawson, and Carina Oriel! https://bit.ly/4g1HNMU

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Yesterday I had the pleasure of appearing on CNBC to talk about the state of tech in the UK and Europe, touching on the state of IPOs vs PE acquisitions, sectors to watch and where the opportunity lies. Thanks for a great discussion Arabile Gumede! Some thoughts from the interview: Signs of Success: The acquisition of UK tech companies by prestigious private equity firms like Thoma Bravo is a testament to the strength and success of the UK tech sector. It's a clear indicator that UK companies are building substantial value and attracting significant international interest. Vibrant Ecosystem: Despite challenges, the UK and Europe boast a vibrant tech ecosystem, particularly in AI, cybersecurity, and fintech. The market has now stabilised post-pandemic, offering a fertile ground for emerging companies to thrive. Opportunity for scale-up investment: Looking at investment into SaaS companies, Europe is on par with the US in the early stages. It is at the scale-up stage that a divide appears – support and more investment into Europe and the UK’s growth companies will further strengthen the region’s tech scene. Watch a clip from CNBC here: https://lnkd.in/d7J8_FNP #Oxx #UKtech #VC #growth

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Counting down to launch :) Eva, Sam and I are hosting a webinar tomorrow at 1300 UK time on cold investor outreach. We'll cover best practice, along with investor + founder perspectives. Now at ~800 registrations - sign up link below. #capitalraising #startups #fundraising #founders

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When the first alphabet in these conversations changes from 'M" to 'B', you know the funding winter is transforming into spring 🌱 #VC #VentureCapital #Earlystagefunding Read more about the latest monthly funding report for VC funding in July 2024 here: ttps://https://lnkd.in/dhdWF8fP

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AI Viability Tracker - update This is an exciting time for all of us. The AI market continues to both fascinate and terrify most in equal measure. We've decided to fully embrace it. Our UK AI partners are building our viability tracker; this will simplify and streamline our process massively. How about you? Are you embracing it yet?

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Cambridge Future Tech builds DeepTech ventures and last week we hit another milestone; we're co-founding our 15th venture 🤘 It's awesome building new ventures from the ground up. It's why we started CFT in the first place. It always feels great to be at the start of the build phase, helping founders articulate a new venture’s tech and potential, building a strong narrative. We’re collaborating closely with founders to transform groundbreaking ideas into companies. 🚀🚀🚀 More to come on this. I'm hyped to share what we're building 🤘 #venturebuilder #deeptech #startups #cambridge

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Last week, the ‘CAIO Collective’ caught up in central London for an event that was anything but ordinary. Since last month’s meetup with our Business Safari through Big Data LDN, we’ve welcomed a further seventeen in person members and over 60 virtual members!  So… this was a gathering of some of the sharpest minds in AI leadership all focused on navigating the increasingly complex landscape of driving real value from artificial intelligence and its real-world applications. This session came at a critical time, as the sector grapples with new regulations, ethical considerations, and the rapid pace of technological advancement and this meant a packed agenda. By strong demand, we pushed the AI talent, learning, and development into December’s meetup using the time instead to focus on this month’s hot topic… the European AI Act (AIA). So… the AIA was at the forefront of our discussions this time around. Its impact on the industry is set to be profound, but not without some controversy. While many welcomed the Act’s intent to enforce transparency, fairness and accountability, there was a fervent shared concern about its potential to curb innovation. This was especially the case for small and medium enterprises. For many in the Collective, this regulation represents a call to action. It’s not just about compliance; it’s about demonstrating how responsible AI can genuinely thrive under a robust framework. The debate also touched on the strategic importance of engaging with policymakers early and ensuring that the voices of practitioners who understand AI’s real-world complexities are really heard. Another focal point was the rise of AI-powered decision-making systems. From dynamic supply chain optimisation to real-time fraud detection, AI’s ability to handle complex decision-making processes is driving a new wave of operational efficiency across industries. However, it’s not without its challenges. Many organisations are grappling with how to deploy these systems at scale while ensuring transparency and maintaining a human in the loop oversight. The discussion highlighted that successful AI deployment isn’t just about technology; it’s about building trust - both within organisations and with their customers. The event was not just a forum for discussion but a call to action. The Collective is dedicated to shaping the future of AI by building frameworks that are ethical, strategic and sustainable. If you’re a Chief AI Officer or in AI leadership and want to engage with a community that’s on the cutting edge of these issues, we’d love to have you join us. Our next gathering is provisionally scheduled for 4 December at The Century Club, where we’ll dive into the critical topic of talent, learning, and development in AI - a key factor in sustaining the industry’s momentum. #CAIOCollective #ChiefAIOfficer #EUAIAct #AIRegulation #AILeadership #EthicalAI #DataGovernance #AIinBusiness #ChathamHouseRules

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What lies ahead: state of play for global VC Following a tough period with slashed valuations and fundraising hurdles, is the market showing signs of recovery? Will companies raise down rounds to avoid shutting down or are they not there yet? Has the pendulum swung too far towards the bigger managers with track records, and how can small and emerging GPs access capital in this environment? https://lnkd.in/gJFy8ME8

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TLDR: EIS should be scrapped as a fund structure but retained for Angel investments by individuals. Alex Chalmers has done all the work which in 10 years I've never got around to doing: why 95% of EIS/VCT funds are bad for our tech ecosystem, rip #startups off, and why as a Founder you should push back against their stupid fees or not take their money. https://lnkd.in/dnq9ZScS

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Very much looking forward to talking to founders that are enabling enterprises to get their data ready for AI consumption. Sign up below!

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