Michael Davies

Together with Dr Jussi Westergren, Emmy Network Fellow in Computer Science at Keble College, Oxford, I’ve written for Sifted on the importance of the budget tomorrow for the future of UK tech. It’s absolutely vital that the Government invests in developing the country’s next-generation compute capacity - or ‘supercomputers.’ Next-generation compute is set to drive breakthroughs in everything from drug discovery to financial modelling via supply chain and how we understand language in the near future. And will also create value for businesses and enable startups to accelerate their development exponentially. If the government does not adequately support home-grown supercomputing, the UK risks losing its status as a leading tech hub as its startups struggle to compete with rivals in Europe and the US. But by delivering funding and fostering a conducive wider investment environment, Britain could thrive in the supercomputing era. The depth of tech, research and business talent in this country is second to none, and the appetite from start-ups, corporations and researchers is there. A great deal of work has already been undertaken in Edinburgh in preparation for this investment. Additional schemes can be balanced around the country, and indeed there are a number of sites which would be suitable to host a supercomputer system. Bletchley Park is such a site: with obvious historical symbolism, geographic advantages and the recent host of the global AI safety summit. Alan Turing brought enormous benefits to humankind, and it would be a fitting tribute to him. Turing Machines still influence current computer science and the Turing Test is more relevant than ever. Close to Oxford, Cambridge and London - home to many of the finest brains in the world - the Bletchley Park SuperCompute is a project that must happen. Full piece here:

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Some VC investors believe that brick and mortar - referring to a physical presence of some kind - should be avoided at all costs. Yet, the track record of clinic and hybrid care businesses in health care indicates otherwise. ==> One Medical (sold for $3.9 billion to Amazon), Oak Street (bought by CVS for $10.6 billion), Lifestance (IPO at $7.5 billion market cap), and PE-backed Premise Health (acquired by OMERS Private Equity for $1.1 billion) If a clinic is indicated as the optimal way to deliver care for that patient population, there are creative ways to build and operate them. Full article below with advice and strategies on how to build and operate hybrid clinics from my teammate Anarghya Vardhana from Maveron, Amir Dan Rubin from OneMedical Group, Steven Eidelman from Modern Animal and more!

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Accelerating technology translation to help researchers commercialise their work is key to creating the innovative start-ups that will address some of the key challenges facing society. More financing to support research through the proof-of-concept stage is needed to create a sustainable pipeline of investible opportunities. Karin Immergluck at Stanford also sees this as the number one challenge in the US. It's not just about funding but also about building an ecosystem that identifies and develops the talent and opportunities within universities. Industry needs to be more involved. Collaboration to pull through research into industry should be encouraged and funded. Initiatives like #MatcelerateZero bring together world-leading materials research universities, global corporations, and international investors together in a unique partnership to help address these gaps and support the transition to #NetZero. The question is not whether the opportunity exists. Public data shows there were 3600 invention disclosures to universities across the UK in 2022-2023 alone. The challenge is how the UK, and its world leading universities, can combine their offering to leverage the UK’s position as the centre of international capital to deliver a commercially innovative economy driven by scientific research. You can learn more about what #MatCelerateZero is doing to accelerate climate solutions in advanced materials here: https://lnkd.in/ezygvxn2 #DeepTech #Innovation #Investment #TranslationalFunding #VentureCapital #TechTransfer #Startups #Spinouts

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Collaboration between public administration and #DeepTech , #Aerospace & #Defense entrepreneurship has the potential to be a powerful force for positive change. By nurturing a symbiotic relationship between public administration and entrepreneurial ventures in these high-tech fields, there is a significant opportunity to create a thriving ecosystem that benefits #society as a whole. Catalyst for positive change and recipes for groundbreaking advancements: - Next-Gen Solutions for #National #Security: DeepTech can fuel innovation in areas like advanced materials for lighter, stronger aircraft, AI-powered threat detection systems, or autonomous drones for surveillance. Public administration, working with aerospace and defense entrepreneurs, can leverage these advancements to bolster national security. - #Space #Exploration and Technological Leapfrogs: DeepTech can be a game-changer in space exploration. Imagine new propulsion systems, advanced communication technologies, or even resource extraction techniques developed by DeepTech startups. Public funding and collaboration with aerospace entrepreneurs can unlock these possibilities, leading to scientific breakthroughs that benefit everyone. - Dual-Use Technologies with #Civilian Applications: Many aerospace and defense technologies have civilian applications. Collaboration can ensure these technologies are adapted for public good. For example, advancements in #satellite #communication can improve internet access in remote areas, while navigation systems developed for defense can be adapted for commercial purposes. - Challenges and Considerations: #Export #Controls and National Security: Balancing innovation with national security concerns is crucial. Public administration needs to ensure sensitive technologies aren't misused. - #Military-#Industrial Complex Scrutiny: Transparency and ethical considerations are paramount to avoid an unchecked military-industrial complex. Venture capitalists, who are typically associated with the private sector, where they provide capital to companies with high growth potential in exchange for an equity stake. However, the concept of government venture capital is emerging as a strategy for public sector innovation. This approach involves governments adopting venture capital methods to spin in technology and innovation from the private sector to improve mission delivery and public service performance. It's a way of leveraging private sector advances and entrepreneurial spirit to enhance the efficiency and effectiveness of public services. The collaboration between #public #administration, #entrepreneurial #leaders, and #venture #capitalists can lead to a dynamic environment where innovative solutions to public problems are developed. This synergy can help create a more responsive and adaptive public sector that better serves the needs of the community.

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📚 Holiday weekend reading: “Plurality.” This philosophical approach applies open technologies to foster diverse collaboration and coordination and solve our societal challenges. Technology can and will bring diverse viewpoints together with the transparent debates needed to come to coordinated solutions. These open technologies today encompass the powerful capabilities in our innovation systems today: open source #AI models, permissionless #blockchain, community #web3tokens, interoperable #metaverses, among the many public goods enabled by emerging technologies. Our social relationships provide the universal values and effective direction for such innovations to impact our world towards positive sum growth. “Plurality” is the central subject of a new book by Microsoft’s internal economist Glen Weyl and Taiwan’s former Minister of Digital Affairs Audrey Tang. That book collects ideas in a donation supported ebook.

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🚀 Here are some of the early-stage VC investments I've seen over the past week fueling innovation in sectors like AI, medtech, and sustainability across 🇪🇺 Europe 🇪🇺. Beyond Aero: The French aerospace startup raised $20 million to develop hydrogen-powered electric jets. The funding round was co-led by Giant Ventures and French sovereign fund Bpifrance, with participation from Initialized Capital, Female Founders Fund, and 7percent Ventures Ventures. Hertility, Co-founded by Dr Helen O'Neill, Hertility Health has raised $15.7 million to date, including angel investor actress Emma Watson, and is currently seeking an additional $20 million to advance its mission of improving women's reproductive health through at-home testing and data-driven diagnostics. Wobby: An Antwerp-based AI-powered information platform, #Wobby secured €1.1 million in seed funding. This investment from, Shaping Impact Group, Si3 fund, V Ventures Llc and imec.istart, will support its expansion into new European markets and its initial entry into the U.S. market. Foodsi: Warsaw-based Foodsi raised €1.2 million to combat food waste in restaurants and stores. The funding round was led by CofounderZone, with participation from several angel investors. Aignostics: Based in Berlin, #Aignostics secured €31.4 million in a Series B funding round to enhance precision medicine through AI. The round was led by Wellington Partners and Evotec, with participation from existing investors Boehringer Ingelheim Venture Fund and HTGF | High-Tech Gründerfonds. GlassFlow: A Berlin-based startup, GlassFlow secured €4.43 million to enable Python developers to build event-driven data pipelines. The seed funding round was led by Earlybird Venture Capital, with participation from 42CAP and several angel investors. Modash Tallinn-based Modash, a creator partnerships platform, secured $12 million in a Series A funding round. The investment aims to accelerate the company's growth and expand its market reach. Scalpel, A London-based medtech startup, Scalpel AI raised £3.8 million in a funding round led by Mercia Ventures. The company specialises in developing AI-driven solutions for surgical procedures.

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The (Healthcare) Ground Beneath Our Feet… This year it is likely that over $10 billion will be invested in the digital health sector – a robust amount, no doubt, but inconsequential when compared to the amount of capital tied up in healthcare real estate assets, which is estimated to be $1.2 trillion by Jones Lang Lasalle. Of that amount, approximately $790 billion is in the hospital sector while the remaining $490 billion is in medical office assets. It is estimated that there are 48.6k facilities with 3.4 billion square feet of healthcare real estate, 42% of which are owned by REITs and another 33% held by other private investment vehicles. Much of the digital health investment is meant to make the physical healthcare infrastructure more productive: greater operating efficiencies, greater patient throughput, more relevant personalized care models with better outcomes. As the healthcare system is being pushed to be more distributed to lower cost sites of care, accelerated now by the rapid proliferation of automation and AI capabilities, the potential impact on healthcare infrastructure assets will be profound. Thoughts on what that might look like... https://lnkd.in/eTfAdUbS #digitalhealth Flare Capital Partners

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One conversation we should be having more, especially in healthcare: is this an AI problem or a policy problem? A big challenge in American healthcare stems from the reality that our healthcare strategy changes with every administration. Throwing AI at problems that are well-addressed by policy innovation (e.g., AI for payer-provider RCM war) feels like a gross misallocation of resources. Solution sets are rarely zero sum – in truth, most problems will require policy, tech, and human interventions, but it's worth asking ourselves whether AI is the best solve when we have a multitude of options.

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💊 Did you know? Most illness-related causes of death are preventable. Multimodal discovery & development (including #AI) has already led to major advancements in #healthcare & #longevity, according to my (former) Singularity colleague Peter Diamandis, who has doubled down on this domain. In the 2030s (which I’ve dubbed the #ThrillingThirties), we’ll have lots of #abundance - of life, health, energy, connection, products & services. Which areas are you most excited about, and contributing to? 👇 #innovation #entrepreneurship #investing

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#AI adoption and implementation has become a major priority for companies, but the value is hard to find. In fact, only 26% have developed capabilities to move from proof of concept. BCG’s new report examines what leaders are doing to drive real value from AI and how individual sectors are performing, and provides a playbook for companies can change their own AI trajectories. Read it here: https://on.bcg.com/4eWHu5N

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Incredibly excited to share our updated Healthcare AI thesis. This is not a market map – in 4,000 words, we dive deeply into the research, products, business models, and market entry points that are reimagining healthcare with AI. More specifically, we cover: • Translating AI research into real-world products • Mapping modalities (software, copilots, agents, services, diagnostics, therapeutics) to problems in healthcare • Designing AI business models that unlock billion-dollar markets • Closing current gaps in healthcare AI infrastructure • Distinguishing AI platforms from point solutions Let us know what you think ⤵️

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Innovation Pavilion is my favorite place to be at WEFTEC. Here are the companies that were showcased by Imagine H2O and BlueTech Research - AXNANO, LLC: Tackling PFAS destruction with modular SCWO systems designed for complex waste streams. - TeamSolve: Delivering AI-powered virtual assistants to optimize O&M workflows for water systems. - OurRainwater: A SaaS platform for efficient residential rainwater harvesting and sustainable water use. - Pyrocal Gasification technology for advanced thermal sludge conversion and PFAS destruction. - Enspired Solutions: Offering energy-efficient PFAS destruction using photo-activated reductive defluorination. - NALA Membranes: Developing novel chlorine-resistant reverse osmosis membranes for improved water treatment. - VAPAR: An AI platform that uses CCTV to assess sewer pipe conditions and guide rehabilitation. - Capta Hydro: Enhancing freshwater recovery through smarter water distribution management systems. - CREW Carbon: Empowering wastewater treatment plants as hubs for carbon removal and climate action. - FTD solutions INC: A digital tool revolutionizing water conservation goals with real-time data monitoring. - NS2: Deploying advanced tools for continuous detection of biological organisms in water systems. - OceanWell: Redefining desalination with modular subsea systems powered by ocean pressure for eco-friendly water production. - SampleServe: Streamlining environmental sampling with digital chain-of-custody and centralized reporting. - WASE: Unlocking the potential of wastewater with an electro-methanogenic reactor to convert sludge into energy-dense biogas. Exciting innovations shaping the future of water! #WEFTEC2024 #WaterInnovation #Sustainability #WaterTech #PFAS #Desalination #DigitalWater #ClimateAction Water Impact Partners

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It's TODAY! OPEN TO ALL FOUNDERS & INVESTORS 📢  Come watch The Deeptech Demo Day FINALS at our virtual conference: e-meet VCs and founders, hear from & ask questions to 4 top-tier VC partners, and discover who'll be crowned WINNER 👑 🚀 From semiconductors and photonics technologies to biotech and robotics, if you want to have your mind blown by what the future will look like, here is a chance to have your taste ⚛️ 🎤 Join us on today, at 3pm UK time, to see the live pitches! 💰 And to ask live questions to some of the most iconic VC partners in Europe. RSVP IN THE COMMENTS 👇 By signing up, you'll also get invited to re-watch the recording once it's over. Our judges you'll meet today: Max Bautin (co-founder and managing partner at IQ Capital), Julia Hawkins (General Partner at LocalGlobe), Camilla Dolan (General Partner at Eka Ventures), and Michael Bjørnlund (Managing Partner at Rockstart) And of course our finalists, some of which you can discover out of stealth from the first time: (This year was so competitive that startups 10th and 11th scored the same, so we have 11 of them) In no particular order: Xterna (Jessica Corry): RNA targeting using next generation XNAs, focusing on making the untreatable, curable. Finchetto (Mark Rushworth): Developing the world's first fully-optical, passive network switch for extreme performance in HPC and AI. TissueLabs (Felipe chippari, Gabriel Liguori, MD, PhD): The platform for creating tissues and organs in the lab. Stars Edge (Sara Alão) : Making satellites airborne through novel air-breathing electrical propulsion systems -capable of operating with better imaging, connectivity and speed in the upper atmosphere. HHC medical (Niels Clausen): Revolutionising gene therapy delivered with wireless electroporation. SpiNNcloud Systems GmbH (Christian Eichhorn): Next-gen computing hardware accelerating hybrid, event driven large AI models. Energy Robotics (Marc Dassler): AI-powered platform for hardware agnostic autonomous robot operations. Sarcura (Daniela Buchmayr: By utilising silicon chip technology, Sarcura is powering new possibilities in cell therapy manufacturing, increasing scalability 100-fold and cutting costs by 10x to make life-saving treatments widely available. Glyconix (Marcos Burger Ramos): Leveraging ML algorithms to turn a Nobel Prize winning research tool into immunotherapy-enabling oncology drugs. Nanusens (Pau Fernandez Guirao, Dr. Josep Montanyà i Silvestre): Revolutionizing the MEMS semiconductor industry. Allos AI (Aditya Varna Iyer): Allos is an AI native pharma company developing complex generic drugs. --- As a deeptech VC myself, I've never been so excited to watch some entrepreneurial showcases. The quality this year is just insanely high. I'm not envious of the task befallen on the special guest GP judges: picking 1 will be crazy tough! But considering the impact each of these technologies will have, they're already ALL winners.

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Just published the latest edition of our monthly #VentureBytes report. The two lead articles spotlight pressing issues in light of the surge in #generativeAI adoption: AI’s memory wall problem and the environmental cost of data centers, respectively. While the issues are pressing, they offer compelling investment opportunities in startups that are addressing these challenges. As always, chockful of ideas are packed in this report. Do read it and lets continue our lively engagement. #sustainability #TechTrends #ArtificialIntelligence #FutureOfAI #AIInnovation #DataCenterEfficiency #EnergyEfficiency #GreenTech #TechDisruptors #SustainableTech #AIRevolution #CleanTech #TechSolutions #EmergingTech #AI #DataCenters #mvp

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The perception that deep tech startups (like those in robotics, space, and biotech) are prohibitively expensive to build is increasingly outdated... Advances in tech infrastructure, better access to startup talent, and an abundance of funding options (both VC and non-dilutive government grants) are making it easier and more affordable to launch deep tech companies than ever before. Costs for key components have dramatically dropped, and supportive macroeconomic and political tailwinds are driving demand for new technologies. With the right approach, ideas that once required tens of millions of dollars and years to develop can now be realized with smaller teams and seed funding, making deep tech a prime opportunity for today’s founders. But what’s impressive about YC is how they push even deep tech startups to generate revenue within the short span of the program. This challenges the notion that hardware and science-based startups need years before showing market traction. Take a look at some from S24: 1. Spaceium: Developing automated space stations for spacecraft refueling and repair. They secured $86.1 million in binding commercial contracts and have an additional $230 million in the pipeline. 2. Network Ocean: Building underwater data centers to reduce power usage and improve GPU efficiency. They already have GPUs available. 3. Theseus: Creating unjammable drones. They've sold units to multiple customers, obtained six-figure LOIs from large drone manufacturers, and have eight-figure funding requests from the DoD for FY25. 4. Ionworks: Offering battery-simulation-as-a-service to accelerate design cycles. With batteries projected to represent 4% of global GDP by 2030, they've gained significant traction with some huge companies across several industries like automative and aerospace .

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Are we obsessed with safety nets at the expense of innovation? From career choices to AI research, our fixation on optionality might be the biggest risk we take. Some of my favorite reads this month: 𝙏𝙝𝙚 𝙏𝙧𝙤𝙪𝙗𝙡𝙚 𝙬𝙞𝙩𝙝 𝙊𝙥𝙩𝙞𝙤𝙣𝙖𝙡𝙞𝙩𝙮 (𝙈𝙞𝙝𝙞𝙧 𝘼. 𝘿𝙚𝙨𝙖𝙞) Desai argues that the relentless pursuit of "optionality"—maximizing career choices—can be a trap, leading to risk aversion and the postponement of dreams. The constant acquisition of safety nets, like prestigious jobs, can stifle true ambition and prevent individuals from pursuing their passions. Are we so busy accumulating options that we forget to live? 𝙏𝙝𝙚 𝙋𝙡𝙖𝙮𝙞𝙣𝙜 𝙁𝙞𝙚𝙡𝙙 (𝙂𝙧𝙖𝙝𝙖𝙢 𝘿𝙪𝙣𝙘𝙖𝙣) This essay explores the five levels of mastery in the investing game, from Apprentice to Steward. It emphasizes the importance of mentorship, adapting one's game to personal strengths, and ultimately, changing the game itself. Level 4 investors, like David Tepper, operate with a unique blend of open-mindedness and conviction, focused on extracting dollars from the market rather than proving their analysis right. 𝙐𝙣𝙫𝙚𝙞𝙡𝙞𝙣𝙜 𝘿𝙚𝙚𝙥𝙎𝙚𝙚𝙠: 𝘼 𝙢𝙤𝙧𝙚 𝙚𝙭𝙩𝙧𝙚𝙢𝙚 𝙨𝙩𝙤𝙧𝙮 𝙤𝙛 𝘾𝙝𝙞𝙣𝙚𝙨𝙚 𝙩𝙚𝙘𝙝𝙣𝙤𝙡𝙤𝙜𝙞𝙘𝙖𝙡 𝙞𝙙𝙚𝙖𝙡𝙞𝙨𝙢 This piece profiles DeepSeek, a Chinese AI company prioritizing fundamental research and open-source models over rapid commercialization. DeepSeek’s focus on architectural innovation, like their MLA model, has sparked a price war in China and earned them respect in Silicon Valley. Their commitment to contributing to global AI advancements challenges the conventional wisdom of China as merely an app innovator. Check out my September reading list for the full list:

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Most Innovative Companies 2024: Innovation Systems Need a Reboot https://buff.ly/3XcvF5K by @BCG GenAI can be a powerful tool in helping organizations reshape their innovation systems for greater readiness #GenAI #Innovation #Accelerator momentum! #rafAIgual #enterprise #adoption

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Today's post is about our commitment at Bread and Butter Ventures to investing in women's health within our healthcare vertical, which is a big focus of our fund. Our mission in healthtech broadly is to invest in technology that democratizes access to quality care for all. A report this year from Deloitte shared that investment in women’s health rose by 5% between 2022 and 2023 - heading in the right direction, however, women's health represented just 2% of the $41.2 billion in venture funding that went to health companies in 2023, according to Deloitte’s analysis. There is such tremendous opportunity to innovate and invest for half the world's population. This an economic imperative. Spotlighting today 5 outstanding healthcare startups innovation in women's health who are very proud to have in our portfolio: ⭐ Gabbi: is building a comprehensive breast cancer risk assessment and early detection platform, combining cutting-edge technology with personalized care. As a woman's virtual breast specialist, Gabbi ensures every woman knows her risk and has access to early detection via telehealth. https://www.gabbi.com/. Shoutout Kaitlin Christine ⭐ Chiyo: is a personalized & integrative food-as-medicine platform that helps the next generation of mothers looking for guidance as they navigate the acute transitions of fertility, pregnancy and post-partum. https://wearechiyo.com/. Shoutout Irene Liu ⭐ Delfina: is creating an AI-powered pregnancy care platform to solve the global maternal health crisis. Delfina lowers rates of adverse outcomes, hospitalizations, and NICU stays to deliver substantial savings for health plans and risk-sharing providers. https://www.delfina.com/. Shoutout Senan Ebrahim, MD, PhD Priyanka Vaidya Ali Ebrahim ⭐ Nest Collaborative is the first to create a nationwide network of lactation consultants, available to mom 24/7 through virtual consultations. We were also the first to offer mom a no-cost, insurance-paid experience - which means when she has a problem we can connect her with a consultant within hours and we take care of all the payment and paperwork on the back end. We are, in all ways, her BFF - Breast Feeding Friend. https://lnkd.in/gKCVYvtF. Shoutout Judith Nowlin ⭐ Myya: provides breast cancer survivors completely customizable, fully insurance billable post-mastectomy prosthetics with a state-of-the-art fitting experience online and in-person. https://myya.com/ Jasmine Jones #womenshealth #digitalhealth #venturecapital #startups

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