SECORA’s Post

There is widening gap of how the UK tech companies are actually doing business, and creating real innovations. The wasted opportunity of science and tech that the UK generates is laid bare in this article by Will Hutton. This is a highlight for me. The myth of the UK pension funds investing in tech startups has been banded around since the last budget, whereas this is the real picture. "The valuations of companies on the UK stock market, where, disgracefully, #UK #pensionfunds only hold 2% of their investments, ...." The recommendations from a report that are outlined in this article do provide a plan for the next government to undertake. https://lnkd.in/dNd_3Fmr

Thanks to Finansavisen for covering our expansion plans in Norway. Some key take aways from State of European Angels. Nordic Angels Boston Consulting Group (BCG). Norway improved its ranking amongst the European markets in attracting VC capital. It ranked one place up at 9th, ahead of Italy but behind Denmark, by attracting about 1.3B USD of VC funding in 2023 Norway is the third biggest VC market in Nordics. It has been neck to neck against Denmark in being the second biggest VC market in Nordics, attracting larger capital than Denmark both in 2021 and 22. However, Denmark took a narrow lead in 2023. Norwegian competitiveness is driven by culture, access to talent, focus on innovation, and regulations. The country is a powerhouse in sectors such as Energy, Transportation, and FoodTech; Oslo remains the VC hub with about 65% of national VC funding, but Bergen and Trondheim grew faster Norway has become heavily reliant on international investors for early-stage funding. After Iceland, it has the highest share in Nordics (at 56%) for the early-stage funding that comes from Non-Nordic Investors Norway is at risk of falling behind in deep tech, including AI, and is at risk of losing its place in global VC unless three key actions are taken 🇳🇴Domestic capital sitting in institutional investors is unlocked to support early-stage VC (as in the US). 📈Corporate VCs account for amongst highest share of VC capital invested (23% in Norway vs 17% in the UK, 15% US). This is a good sign, but more can be done to unlock private capital. 🤝Increasing collaboration amongst early-stage investors as the ecosystem is too small for investors to work in Silos. The cost of talent is lowered in Norway, which performs better than the Nordic leader Sweden in this regard. However, the recent decision to tax unrealized capital gains may make it harder for the country to attract and keep talent. Ash Pournouri Siduri Poli Maria Webjörn Johan Öberg Vai Singh Nicolas Schmidt

It’s Monday and the start of a new #European cycle #EU2024to2029 So it’s a great time for this #OpEd by J. Scott Marcus who published a #MustRead study at European University Institute #EUI24 on how #Europe can compete (and what we must do!) https://lnkd.in/en8geSTg To quote: “Contrary to what many think, the EU does even better than the US at creating high-tech start-ups; however, many European firms whither on the vine due to a lack of finance.” Read on for the full article and the full study! #CCIAeurope CCIA Europe #digitalEU #competitiveness #finance #ventureCaptial #EU #competition #startups #VCs

Very interesting article on New Zealand innovation investment. I often see very good ideas and startups coming from New Zealand, but wonder if New Zealand is doing justice to the commercial aspects of the startup ecosystem. There is risk investment needed for disruptive innovation as well as established firms that need to invest in R&D and innovation. There is definitely something called Kiwi ingenuity, but sometimes it gets stuck in the funding stage. Rocket Lab was a Kiwi idea and it would have died in its infancy if risk investment was not available from Khosla ventures. There is a similar story for Lanzatech. Risk investment is still not available in the same way like other OECD countries. Medical devices need more risk investment and time for exit will be more. New Zealand has lots of potential in this area if there is sufficient capital available. https://lnkd.in/gKm3GgkV Xero and F&P look to be more outliers than the norm. New Zealand’s investment in research and development (private sector and public sector combined) totals approximately 1.5% of GDP, which puts us in the bottom half of OECD countries. What’s more, New Zealand is meaningfully behind other smaller economies, such as Denmark (2.8%), Switzerland (3.4%) and Belgium (3.4%). #innovation #newzealand #kiwiingenuity #funding #Researchanddevelopment #research #scalingup #rocketlab #lanzatech #xero Fisher & Paykel Healthcare Xero Rocket Lab LanzaTech Simon Malpas #innovationecosystem Callaghan Innovation Khosla Ventures

📉 The European Union Faces a Productivity Problem 📉 European workers produce 30% less per hour than their counterparts in the U.S. since 2000. A key factor is the lack of development of innovative #startups into "#superstar" firms. 🚧 Obstacles in the Fragmented Market 🚧 Europe's #fragmented economy and #financial system hinder the expansion of successful startups. The lack of a frictionless #singlemarket for goods, services, labor, and capital increases costs and difficulties. 💰 Limited Financing for Startups 💰 Europe's bank-based financial system is not well-suited to finance risky startups. High-tech startups often develop new technologies and business models, which are risky and may be hard for banks to assess. And the value of startups often lies in their people, ideas, and other intangible capital, which is difficult to pledge as collateral for a bank loan. Banking restrictions and the lower availability of private capital compared to the U.S. limit investments in emerging tech companies. 📊 Private Capital Comparison 📊 In 2022, Americans invested $4.60 in capital markets for every dollar invested by Europeans. This is partly due to Europe's reliance on pay-as-you-go pensions. 💡 Potential of Venture Capital 💡 Increased venture capital could boost productivity and strengthen the EU's innovation ecosystem. However, the shortage of venture capital starves startups of the investment needed to grow and improve living standards. 📉 Loss of Venture Capital Post-#Brexit 📉 Since the UK left the EU, its largest venture capital base was lost. Over the past decade, #EU venture capital investments averaged just 0.3% of GDP, less than one-third of the #US average. 📈 Recommendations for Improvement 📈 To foster #venturecapital and #productivity, the EU needs to: Complete the single market for goods, services, labor, and capital. Fine-tune rules to reduce barriers to venture capital. Expand the capacity of the European Investment Fund (#EIF) and the European Investment Bank (#EIB). Develop a fund-of-funds to attract capital from institutional investors and reduce fragmentation. https://lnkd.in/diE-mMFs

The UK: A Thriving Hub for Entrepreneurs and Tech Start-ups The UK is one of the most exciting and reliable places for business leaders and entrepreneurs worldwide to establish and grow their ventures. With a vibrant economy and pro-business environment, the country is at the forefront of innovation and investment, offering incredible opportunities for businesses of all sizes. The #InternationalInvestmentSummit, held today by the UK Government, will showcase the UK's position as the ideal destination for investors and business leaders, emphasising the country's commitment to long-term growth, modern technologies, and sustainable jobs. Key stakeholders from major tech companies, including Google and Wayve, attended today's event. 🔗https://lnkd.in/eZP5GiV6 Now is the perfect time for tech start-ups and scale-up companies to develop and expand in the UK. The UK is Europe's leading tech ecosystem, boasting the highest number of unicorns and attracting billions in venture capital. This strong economic landscape and the government's drive for stability and growth make the UK a prime location for innovators and businesses looking to make their mark on the global stage. As more start-ups and scale-ups operate in the UK with European and global markets, the demand for #CertifiedTrainingProgrammes on their products is higher than ever. For companies incorporating #AI or delivering AI training, certification becomes crucial to ensuring customers understand and maximise the potential of these technologies. Just as major US tech giants have seen the benefits of product certification, tech companies in the UK can follow suit, strengthening their brand loyalty and client engagement through certified training. 🌟 Curious how certification can drive your business growth? Learn more https://lnkd.in/eB4utbyt #UKBusiness #Startups #ScaleUps #Investment #TechEcosystem #AI #Certification #TrainingProgrammes #Kryterion #Innovation

This is an interesting commentary on the need for innovation investment in NZ. Very familiar territory that highlights the investment returns when companies invest in R&D however what was unsaid is the lack of investment from superannuation funds like Fisherfunds and big finds like the ACC fund in NZ VC's. The appropriate question to ask is how much why can't these large funds commit 5% to invest in NZ homegrown innovation. Sam Stubbs has excellent commentary on this. https://lnkd.in/gQpDwtQZ

With investors flocking to tax-efficient schemes ahead of the budget announcement, now is the perfect time to learn more about #SEIS and #EIS. To date, SEIS and EIS have already helped deploy £32 billion in investment to 56,000 startups, but only a small fraction of potential investors are taking advantage of the schemes and their generous tax savings.❗️❗️ To re-invigorate SEIS and EIS, and catalyse impact for startups, we need more of this massive pool of would-be investors to learn how these schemes can benefit them. Watch our informative video to discover how SEIS and EIS can help you save on taxes while supporting the startup ecosystem. Let's make Britain the best place to start and grow a company! #taxrelief #investmentportfolio Capital at risk. For professional investors only. Tax benefits are subject to individual circumstances. Subject to changes. Data source: Enterprise Investment Scheme, Seed Enterprise Investment Scheme and Social Investment Tax Relief statistics: 2024 (HMRC, May 2024)

Sifted's Q3 Report Is Out! Here are the Key Investment Highlights from Europe's Startup Ecosystem! 🌍 📉 In Q3, the investment landscape saw a total of €𝟏𝟏.𝟓 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 poured into equity, debt, and grant investments across 𝟏,𝟐𝟎𝟔 𝐫𝐨𝐮𝐧𝐝𝐬, bringing the year’s total to €𝟓𝟗 𝐛𝐢𝐥𝐥𝐢𝐨𝐧. While the funding landscape has shifted, with both funding and deal counts falling by 𝟒𝟖% and 𝟏𝟗% compared to Q2. 💰 𝐄𝐪𝐮𝐢𝐭𝐲 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠: Dilutive financing reached €𝟏𝟎.𝟑 𝐛𝐢𝐥𝐥𝐢𝐨𝐧, down 𝟑𝟒% from Q2 and compared to last year. The focus is shifting towards earlier-stage investments, as 𝟑𝟒% of total funding (€𝟑.𝟗 𝐛𝐢𝐥𝐥𝐢𝐨𝐧) came from pre-seed, seed, and Series A deals. 💳 𝐃𝐞𝐛𝐭 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠: Debt raised in Q3 was €𝟏.𝟐 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 from 𝟑𝟎 𝐝𝐞𝐚𝐥𝐬, a sharp decline from previous quarters. 📈 𝐌𝐞𝐠𝐚𝐫𝐨𝐮𝐧𝐝𝐬: In Q3, 𝟐𝟕 rounds of $𝟏𝟎𝟎 𝐦𝐢𝐥𝐥𝐢𝐨𝐧+ were announced, a dip from 𝟒𝟕 in Q2, showing a notable shift in capital allocation. 🌟𝐁𝐢𝐠𝐠𝐞𝐬𝐭 𝐃𝐞𝐚𝐥𝐬: The spotlight was on Belgian app developer team.blue with a whopping €𝟓𝟓𝟎 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 million, followed by AI defense startup Helsing at €𝟒𝟓𝟎 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 and renewable energy startup Sunly with €𝟑𝟎𝟎 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 in debt. 🇬🇧 𝐂𝐨𝐮𝐧𝐭𝐫𝐲 𝐑𝐚𝐧𝐤𝐢𝐧𝐠𝐬: The UK led the charge with €𝟑 𝐛𝐢𝐥𝐥𝐢𝐨𝐧, followed by Germany at €𝟐.𝟒 𝐛𝐢𝐥𝐥𝐢𝐨𝐧. Despite a significant drop in investment for both the UK and France, Germany managed to grow by 𝟏𝟐% compared to Q2. 🏙️ 𝐓𝐨𝐩 𝐂𝐢𝐭𝐢𝐞𝐬: London took the crown with €𝟐.𝟏 𝐛𝐢𝐥𝐥𝐢𝐨𝐧, with Munich (€𝟏.𝟐 𝐛𝐢𝐥𝐥𝐢𝐨𝐧) and Paris (€𝟖𝟑𝟔 𝐦𝐢𝐥𝐥𝐢𝐨𝐧) trailing behind. Ghent made a surprising debut at #5 with €𝟔𝟑𝟏 𝐦𝐢𝐥𝐥𝐢𝐨𝐧. 🌱 𝐒𝐞𝐜𝐭𝐨𝐫 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬: #Climatetech dominated with €𝟐.𝟗 𝐛𝐢𝐥𝐥𝐢𝐨𝐧, closely followed by #B2BSaaS and #HealthTech. The hot sectors included 𝐝𝐫𝐮𝐠 𝐝𝐢𝐬𝐜𝐨𝐯𝐞𝐫𝐲 (€𝟗𝟖𝟎 𝐦𝐢𝐥𝐥𝐢𝐨𝐧), 𝐛𝐢𝐨𝐭𝐞𝐜𝐡 (€𝟕𝟎𝟑 𝐦𝐢𝐥𝐥𝐢𝐨𝐧), and 𝐞𝐥𝐞𝐜𝐭𝐫𝐢𝐜 𝐯𝐞𝐡𝐢𝐜𝐥𝐞𝐬 (€𝟓𝟔𝟐 𝐦𝐢𝐥𝐥𝐢𝐨𝐧). 🦄 𝐍𝐞𝐰 𝐔𝐧𝐢𝐜𝐨𝐫𝐧𝐬: Two new $𝟏 𝐛𝐢𝐥𝐥𝐢𝐨𝐧+ companies: London-based Flo Health Inc. and Munich's EGYM. 🤝 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐀𝐜𝐭𝐢𝐯𝐢𝐭𝐲: A total of 𝟐,𝟒𝟔𝟎 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 investors were tracked, with Antler leading as the most active private investor in Q3 with 𝟐𝟎 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬. 💼 𝐅𝐫𝐞𝐬𝐡 𝐂𝐚𝐩𝐢𝐭𝐚𝐥: Q3 also saw over €𝟖.𝟏 𝐛𝐢𝐥𝐥𝐢𝐨𝐧in fresh capital raised by Europe’s VCs, signaling continued confidence in the startup ecosystem. A huge shoutout to the Sifted team for their hard work in compiling this insightful report! Jonathan Sinclair, Ruggero Di Spigna, Hessa Alabbas, Éanna Kelly, Federico Scolari, Kai Nicol-Schwarz, Tom Matsuda, Daphné Leprince-Ringuet, Amy Lewin 🔗Check out the full report here: https://lnkd.in/evpNmgmf #InvestmentHighlights #EuropeanStartups #Q3Investments #VentureCapital #VC #Innovation