Russ Shaw CBE

"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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🌟 AI is Revolutionising Business: Insights from the E2E Dynamic Track 100 Launch. The E2E Dynamic Track 100, spotlighting the UK’s fastest-growing private companies, launched with a powerful panel discussion on AI’s transformative impact. Industry leaders shared how AI is reshaping sectors: 💼 Brightsun Travel is enhancing customer choice and streamlining bookings. 🚗 Vizion Network is leveraging AI to boost efficiency and eliminate repetitive tasks. 💱 Universal Partners is integrating AI into forex systems for cutting-edge solutions. Howard Leigh of Cavendish Corporate Finance predicted AI would create new opportunities while improving work-life balance in finance. Chris Blackhurst has written an amazing piece in The Independent to read more click the link below. https://lnkd.in/gHB2rH8w Congratulations to the top E2E100 dynamic businesses driving the future of UK enterprise! 🚀 #AI #Innovation #E2EDynamicTrack100 #Entrepreneurship #E2E #BusinessGrowth

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Black Book's 2025 survey highlights trends and investment priorities in healthcare IT, based on insights from over 1160 key figures in... #venturecapital #veteranventures

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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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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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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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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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Very proud to see the WVC:E dream team - Anisah Osman Britton MBE & Rachel Drapper - alongside long time friend and rockstar Ekaterina Gianelli on stage at TechBBQ discussing "Fixing the Talent Exodus in VC". Key Takeaways: 💰Impact of Consolidation on Culture and Talent: The ongoing consolidation in the VC industry is reshaping company culture, affecting morale, and influencing talent. 🚀Emerging Managers Aren’t Diversifying VC: Despite the rise of emerging managers, the industry remains largely homogenous, with many new managers still coming from the same traditional, non-diverse backgrounds. ⚠️Perceptions of Diversity as High Risk: Many in the VC industry continue to view diverse hires, investments, and business models as "high risk," "too time-consuming," or "too costly," perpetuating a cycle of exclusion. 🚼 Parental Leave Inequality: Inequities in parental leave policies are disproportionately affecting women in venture, creating additional barriers to progression. But there are funds, investors, LPs and organisations (like us!) that are trying to change this!

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🔥 We have 100+ people registered for this event! Retention in startups is clearly a hot topic and we'll help you get it sorted with the help of our brilliant panel Brian Evje, Sally Kennard, James Kusena PhD, and Pavneet Khurana 🚒 As with any of our events you will get actions and behaviours you can put in place immediately for impact from people who are actually doing it. Muireann Bird will sum up the research you need to know to avoid everyone else's mistakes. ⏰ Please join! Registration link below (event is Thursday so only a few days left!): https://lnkd.in/e5SCUXBD If you can't make it or can't attend the whole thing, don't worry, you'll get a recording as long as you register. Huge thanks to Royal Academy of Engineering and Erik Tomlin for their support and getting the word out. 🙏 (and yes this is a great way to get over a devastating football loss) #culture+ #belonging #inclusion #retention #startups #engineering #dei #edi

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It was fun to take our #fixtheregulators campaign to Parliament this week, at the UK House of Lords Communications and Digital Committee's inquiry into AI. Startups are delivering AI-based innovation across the economy, but we have a regulatory system that is ill-equipped to bring the best of it to market. Instead, regulators are a barrier to progress because they lack the risk appetite, resources or rules (sometimes all three!). This needs fixing as an urgent priority for the UK's industrial strategy and broader approach to R&D. This doesn't just apply to AI - but the speed at which AI is moving makes the regulatory challenge all the more acute. Great to sit alongside Gerard Grech and Susan Bowen!

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👨‍👩‍👧‍👦 The care economy is bigger than the US pharmaceutical industry and ripe for technological disruption but gets limited interest from VCs. At 3 Sisters Ventures (3SV), we recognise this huge opportunity, with the care space being a core focus for Dalia and me ever since we founded 3SV. I am therefore proud to announce that we are now working with the phenomenal Rachel Drapper on new research that will help improve understanding of the sector—so watch this space! 🔍 At 3SV, we also invest with an impact lens and are on a mission to close gender gaps, including the Gender Leisure Gap. Doing so starts by leveling the playing field when it comes to unpaid domestic work, and tech-enabled care is key in helping us achieve this. #careeconomy #venturecapital

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The article outlines five critical priorities for the UK government to support SMEs better: improving access to finance, enhancing digital infrastructure, reducing regulatory burdens, fostering innovation, and expanding international trade opportunities. These actions are essential in empowering SMEs, the backbone of the economy, to thrive in a competitive and rapidly evolving market. The government can help SMEs overcome challenges, drive economic growth, and create more resilient and sustainable businesses by addressing these key areas.

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"CTO titles should be earned, not given out without understanding the responsibilities that come with the title ..." 👀 Episode 19 of Now We Build by Forward Pursuit is now live! I was super lucky to be joined by Hubert Behaghel, former Head of Technology at Sky, Marks and Spencer, Typeform and now the CTO at Veriff! In the episode we covered: 👉🏽 How Hubert builds high functioning tech teams. 👉🏽 Why CTO titles need to be earned and not given out. 👉🏽 Why every startup needs to focus on it's internal tech alongside product. The episode is now live and you’ll find the links in the comments below 👇🏽 Proudly supported by Carta, Google Cloud, Fuelled | B Corp and Seven Legal. #founders #vc #startup #tech

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Thanks to The Quoted Companies Alliance(QCA) who invited me as a guest on their Growth Capital Podcast recently to discuss the interesting topic of ‘Public or Private?’. James Ashton, Ray Anderson and I discussed timings for founders to go public and how the stock market could increase its appeal so that more entrepreneurs take the plunge. I emphasised the need to give people the confidence to succeed, whether public or private. I also shared some of my personal experience about how we’ve successfully helped smaller companies to scale and grow, setting growth agendas for 6–7 years and working with them towards entering the public market. In this episode we covered key topics such as: · funding gaps, venture capital and how we could use the UK tax system to incentivise businesses · what motivates companies to turn to overseas investment · long-term planning and what the components of the journey to success look like · why some companies would rather stay private than going public – and the benefits of doing that, such as taxation. It was great to hear the thoughts of Ray Anderson; he has more than 30 years’ experience in starting, growing and selling businesses, and is executive chair and founder of Bango. Listen here https://lnkd.in/eseWiqrK #GrowthCapital #PublicVsPrivate #Entrepreneurship

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It was a great pleasure attending the Operating Partner Forum in London this week and engaging in thought-provoking discussions with industry peers, sharing best practises and learning how they are tackling some of the headwinds we are facing. The event covered a range of topics, but high on the agenda was the digital strategy and how to leverage AI as a driver of value creation. Here are my top three takeaways: #1 AI is coming, but getting the fundamentals right matters more: While AI has great potential and we will see significant product enhancements and productivity boosts opportunities in the near future, the real value today comes from getting the basics right. Strong processes, controls, an effective operating model, and robust data structures and systems are crucial for success. #2 Data maturity and organizational readiness: It's essential to assess and improve your organization's data maturity to ensure readiness for advanced analytics and AI implementation. This is a journey not a sprint. #3 Clear ownership of the digital agenda: Clearly distinguish between IT roles (infrastructure, architecture, cybersecurity) and data analytics roles lead by business and addressing business needs. This separation helps ensure we are addressing effectively real business needs and driving the digital strategy forward. #operatingpartnersforumeurope #operatingpartner #valuecreation #privateequity #carveout #transformation #parlementiacapital https://lnkd.in/ee_s_Gdb

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🔥🍴 Intel Ignite is still relatively new to the UK tech scene and we're keen to understand more about the VC ecosystem so last week we conducted an experiment. We hosted a dinner for a small group of investors to see what would happen. How open would people be in sharing their experiences? What are the things we can learn from each other? Would people even turn up? I can report that the event was overwhelmingly positive; conversations were flowing, everyone was engaged, we got to know each other personally, insights and lessons learnt were shared and above all, it was a fun time! Some of the things we talked about: 🛰 The rise of defence tech and dual-use investing, plus the increased amount of spacetech deal flow we’re seeing. 😇 Angel investing when you work at a fund. Is it allowed, and if so, can you only invest in companies outside of your fund’s thesis or does the fund get the right of first refusal on those deals? How do you handle conflicts of interest? 🐲 We talked about the incredible impact of DragonChasers, the community for emerging managers to find the right investors and helping LPs from around the world find the right European ventures funds to invest into. 💰 Ofer Shayo shared the story of how his start-up got acquired. Spoiler alert: it wasn’t easy at all. It was an intricate process where there were a lot of moving pieces. We also shared tactical tips with each other including how to engage with student entrepreneurs and university spin-outs, and how we conduct first calls with founders! My thanks to Isabelle O'Keeffe, Harry Morgan, Aashna Gupta and Patrick Gilday for the lively conversation. And here’s a picture of us in our “rave” sunglasses 🕶

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🌍 Innovating How We Spend and Access Health and Wellness: The Global Scalability of Mentwell 🌍 As the Chairman of Mentwell, I’m excited to share the innovative strategies that will set us apart and enable us to scale globally with ease. At Mentwell, our mission is to revolutionise how people spend on health and wellness around the globe. By providing personalised, accessible, seamless experiences, we are able to truly created a distinguished offering for consumers who want to gift wellness to businesses who want their employees at their best. 🔧 One Innovation Behind Mentwell: Our platform leverages advanced merchant codes, which means we don’t need to sign up each individual supplier separately. This is a game-changer because it allows us to: ·     Streamline Integration: Quickly and efficiently incorporate a diverse array of services and products without the usual lengthy onboarding processes. ·      Enhance Accessibility: Provide our users with a broader selection of health and wellness resources from the best providers worldwide. ·      Maintain Flexibility: Adapt and expand our offerings based on emerging trends and user needs, ensuring we stay at the forefront of mental health innovation. 🌟 Why Mentwell Can Scale Globally: 1.    Universal Application: Mental wellness is a universal need, and our platform is designed to cater to diverse cultures and lifestyles. 2.    Scalable Technology: Our use of merchant codes allows for rapid and scalable integration with suppliers across different regions without extensive administrative overhead. 3.    Global Network: By not being tied to individual supplier sign-ups, we can leverage local card networks, ensuring our users have access to the Mentwell ecosystem, no matter where they are. Join us on this journey to make pay for health and wellness accessible to everyone, everywhere. Together, we can build a healthier, happier world. #Innovation #MentalWellness #GlobalScalability #TechInnovation #MentalHealth #Mentwell #HealthTech

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This is well worth a listen, the three key messages are really powerful! I also love how humble, even nervous he seems. Here are his three lessons with my favourite bit from each: 1. Excellence is a myth “Yes, talent matters. I’m not going to stand here and tell you it doesn’t. But talent has a broad definition. Most of the time, it’s not about having a gift. It’s about having grit. In tennis, a great forehand with sick racquet head speed can be called a talent. But in tennis... like in life... discipline is also a talent. And so is patience. Trusting yourself is a talent. Embracing the process, loving the process, is a talent. Managing your life, managing yourself... these can be talents, too. Some people are born with them. Everybody has to work at them.” 2. Its only a point “In tennis, perfection is impossible... In the 1,526 singles matches I played in my career, I won almost 80% of those matches... Now, I have a question for all of you... what percentage of the POINTS do you think I won in those matches? Only 54%. When you’re playing a point, it is the most important thing in the world. But when it’s behind you, it’s behind you... This mindset is really crucial, because it frees you to fully commit to the next point… and the next one after that… with intensity, clarity and focus.” 3. Life is bigger than the court "I worked a lot, learned a lot, and ran a lot of miles in that small space... But the world is a whole lot bigger than that... Even when I was just starting out, I knew that tennis could show me the world... but tennis could never be the world." https://lnkd.in/es-V7Dgv

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