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London's first defense tech hackathon brings Ukraine war closer to the city's startups | TechCrunch


Last week, the UK announced its largest ever military support package for Ukraine. The bill takes the U.K.’s total support for this financial year to £3 billion — not quite the $50 billion the US pledged recently, but still substantial.

But while most of those funds will be spent on very traditional military hardware, a new tech initiative launched last weekend was aimed at enhancing Ukraine’s asymmetric warfare capabilities against Russia. In fact, the London Defense Tech Hackathon was the first-ever event to bring together some of the UK’s brightest minds in technology, venture capital, and national security in a military setting. The idea was to hack together ideas to both assist Ukraine and also to create a far more porous layer between the worlds of fast-paced civilian tech and the very different world of the military. 

Put together by Alex Fitzgerald of Skyral and Richard Pass of Future Forces, the two were joined by co-organizers that included the Honourable Artillery Company,  Apollo Defense, Lambda Automata and D3 VC among others.

The event brought together developers skilled in both hardware and software to foster innovation in defense, national security, and deeptech. There was a key focus on drones and their applications on the battlefield, both the hardware and the electronic systems needed to fly them to their targets and counter-drone systems. 

As most observers of the war have pointed out, this war has taken on a completely new dimension compared to previous wars. Today, drones and electronic countermeasures are the order of the day, as Ukraine has endeavored to fight off Russia, a much larger aggressor, with asymmetric methods. 

Fitzgerald told me: “There are three groups of people coming to these events. There’s the builders, investors, and the military. I think for everyone, it’s trying to convince their colleagues to think more about defense technology as an option to either build or invest in.”

He explained that there were two main tracks of work: electronic warfare and drone or aerial systems: “There’s an acronym I learned from someone cleverer than me, which is that the future of defense technologies comes small, cheap  and uncrewed.”

He explained that one main aim was to get people who had traditionally not been involved in defense either building for or investing in defense: “We’ve got people like the NATO Innovation Fund, the UK National Security Strategic Investment Fund. So yeah, it’s a mix of people who already invest in defense or who haven’t thought about investing before.”

He chose the hackathon format because “the focus is on getting stuff done. Get actual builders, not to just talk about building, because that’s actually where most of the innovation is happening.”

One of the inspirations for the event was the recent El Segundo, Calif., defense tech hackathon in February of this year.

“I think the key thing with military technology is making it as easy to use and as powerful as some of the the consumer technology that’s been built,” said Fitzgerald “There’s the classic line, ‘There’s more AI in a snap in Snapchat than there is often some most modern military systems.’” 

Also attending the event was Catarina Buchatskiy, representing Apollo DefenseAs engineers pored over cameras, Starlinks, and drones, she told me: “Defense tech is a difficult industry to enter. And it’s a difficult market to break into, for obvious reasons. We’ve found Hackathons an extremely exciting way for people to get involved because defense technology can seem like a giant black box of contracts that take 10 years, and technologies that are built [are often] hidden from the public eye. At a hackathon, you have 24 hours. Make something really cool.”

 

Interceptor done

She said the firm had seen “a lot of success” with the El Segundo event.  

“We just realized that if people think it’s something that’s accessible to them [and] can do something quickly and make an impact, they want to participate,” she told me.

Buchatskiy, who is Ukrainian, also spoke powerfully about Ukraine: “These are very real things to me. When I say that I need a drone detector, it’s because I’m looking at one outside my window that we didn’t detect in time and it is going to kill my neighbor. That is the reality that we face.”

She added that it’s important for hackathon attendees to know “that they’re building for someone and this could actually save my family’s life.”

Despite the controversy surrounding defense technology in some quarters, she added, “To be involved in technology is to be interested in a better future. And I really, truly can’t think of a more interesting and better future than one that’s safe and one where we can guarantee peace.”

NATO, in the shape of the NATO Investment Fund, a fund with a billion euros to invest in defense tech over the next few years, was also represented. 

Fund partner Patrick Schneider-Sikorsky told me the fund was set up to back startups “that bolster our collective defense security and resilience. We invest in dual-use deep tech, but the fund was conceived before the war in Ukraine. The conflict has now very much impacted our investment thesis and we’re keen to invest in defense technologies that can make Europe safer and more secure.”

But why was NATO funding a hackathon?

“I think defense tech is new to a lot of a lot of founders and a lot of developers,” Schneider-Sikorsky said. “It’s not that easy for them to understand the problem statements and the challenges and also to get access to the end users.”

He said the hackathon format particularly lends itself to that: “It would normally, for many founders, take them months if not years to get in touch with the right people at defense ministries, and a lot of them are here today. So hopefully it will accelerate things substantially.”

Another attending investor, Alex Flamant from HCVC, told me: “There was a need for people in Europe to invest in proper defense technologies. It seemed from the investor standpoint, there’s restrictions around certain investors investing. One of the goals of this is to demystify what a lot of this is amongst young builders, and really to get people more aligned with the big mission that we’re all on.”

Machine learning specialist was there to focus on drone detection: “That’s in our machine vision and object detection knowledge. Ukraine are fighting for the whole of Europe at the moment and obviously the UK is pivotal to that. It’s essential that we that we ally with them and utilize what we have to help.”

The hackthon came at a time of increased tension around the use of technologies in defense. 

Google recently fired 28 employees after their sit-in protest over the controversial Project Nimbus contract with Israel, for instance.

However, defense is clearly rising up the tech agenda.

Anduril recently moved ahead in a Pentagon program to develop unmanned fighter jets, and more broadly as we learned last year, venture capital is opening the gates for defense tech. 

And in the UK, there is much talk about how high-powered lasers could be among the next wave of weapons. The DragonFire weapon is said to be precise enough to hit a £1 coin from a kilometre away, according to the MoD, and cost barely $15 to fire. 

The projects to emerge from the hackathon may not have been not quite so sci-fi, but they were pretty damn close. How about a “High Speed Interceptor to take down Orlan Drones”? And at least they are likely to be deployed a lot sooner than a laser gun. 

 




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Norwest Venture Partners raises $3B for 17th vehicle, maintaining fund size despite market downturn | TechCrunch


Norwest Venture Partners, a 65-year-old firm backed solely by Wells Fargo, has raised its 17th fund at $3 billion.

That’s a noteworthy number, given that NVP last raised the same amount in December 2021. That was the peak of the venture boom, and at that time, the firm said it increased its capital pool by 50% (NVP’s 2019 fund closed at $2 billion) because it needed to stay competitive in the dealmaking environment where round sizes and valuations have climbed to unprecedented levels.

But things have obviously changed since then. Investors are backing fewer companies, and valuations have dropped and may fall further.

Jeff Crowe, a senior managing partner, admitted that the investment rate in venture and certain sectors is slower than it was several years ago, but he said that dealmaking in certain strategies, sectors and geographies, such as growth equity, healthcare and India, is as robust as it was before the downturn.

“We’ve kept a very steady pace and have delivered a number of nice exits,” Crowe told TechCrunch. “We felt it makes sense to keep going at the same pace.”

Since closing its previous fund, the firm has helped 36 companies realize liquidity. Not all exits were great outcomes for the firm (NVP’s portfolio company VanMoof filed for bankruptcy protection), but returns from certain exits greatly outweighed the losses, according to Crowe. He pointed to the firm’s sale of Spiff to Salesforce, the buyout of Avetta by EQT for a reported $3 billion, and the IPO of Indian-based Five Star Business Finance.

Crowe declined to comment on returns, but said: “This is fund 17. We’ve been doing this for a long time, and in the venture world, you get to stay in business if you deliver really good returns.”

NVP attributes much of its success to operating out of one large global multi-strategy fund. The firm invests in North America, India and Israel. It has an early-stage and growth equity business, and has recently added a biotech team to round out its existing healthcare practice.

The diversified approach allows the firm to adjust its strategy when the market changes. For instance, NVP planned to invest in crypto companies when it raised its last fund, but the sector fell out of favor shortly after that, and the firm didn’t pursue many deals in the space.   

“Our diversified strategy works well through ups and downs of investment cycles,” Crowe said.  “It gives us flexibility. That’s the beauty of it. We react faster to changes.”


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Salesforce's silly deal dies, Rubrik's IPO, and venture capital in space | TechCrunch


It’s going to be a big week! Tech earnings are coming up, the EV wars are on (and how!), and it feels like venture capital has its head in the clouds. All that adds up to one packed Equity episode!

Today, we dug into the latest markets news, including upcoming earnings, IPOs, and what impact — if any — the bitcoin halving has had on the value of the cryptocurrency.

We also had two new venture capital funds to discuss: A new vehicle from Seraphim focused on space, and TLcom Capital’s new Africa-focused fund. From there, it was time to chat EVs and what impact recent price cuts are having on the value of EV companies.

To close out, we dug into the emerging startup cluster in vector databases and search. In short, normal databases are hot garbage when it comes to the sort of queries we need for AI, but vector search is pretty good at it. Enter startups, venture capital and the biggest tech companies. May the startups win.

Equity is TechCrunch’s flagship podcast and posts every Monday, Wednesday and Friday, and you can subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts.

You also can follow Equity on X and Threads, at @EquityPod.

For the full interview transcript, for those who prefer reading over listening, read on, or check out our full archive of episodes over at Simplecast.




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A $60M venture fund with a twist, and more startup-on-startup acquisitions | TechCrunch


Ah, spring has sprung here in the Northeast United States, and it’s not only flowers that are blooming. No, startup-on-startup deals are the crop this season!

Today on Equity’s startup-focused Wednesday show, we dug into the Multiverse-Searchlight deal, which reminded us of the Wonderschool-Early Day transaction that we covered on the show a few weeks ago.

We also talked about the latest Guesty round, which was both large and interesting; the Monad Labs transaction that led to us trying to explain the difference between L1 and L2 blockchains; and Cyera’s quick recent mega-round. Startup Land is feeling quite busy and high-dollar again, and that’s a lot of fun!

We wrapped up the show with a cool discussion of this new venture capital fund that’s targeting growth-rounds in Africa.

Equity will be back on Friday to review the week’s headlines, so stay tuned!

Equity is TechCrunch’s flagship podcast and posts every Monday, Wednesday and Friday, and you can subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts.

You also can follow Equity on X and Threads, at @EquityPod.

For the full interview transcript, for those who prefer reading over listening, read on, or check out our full archive of episodes over at Simplecast.




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Screen Skinz raises $1.5 million seed to create custom screen protectors | TechCrunch


Clay Canning had an idea while in high school: smartphone screen protectors that featured logos, right on the screen.

He later connected with Rashaun Brown, who was working in sports and licensing at the time, and the idea for Screen Skinz was born.

“We both understood the opportunity and complemented each other’s weakness,” Brown, the company’s CEO, told TechCrunch. “In December 2022, I resigned from my job to pursue building Screen Skinz with Clay full time.”

Now, Screen Skinz can officially announce the closing of a $1.5 million seed round led by South Loop Ventures and Abo Ventures.

The company produces custom, patent-pending phone screen protectors that feature personalized logos or slogans that are visible when the phone screen is black and then disappear when the phone is in use. Customers can create their own designs or pick from the company’s existing catalog.

Phone accessories have always been a massive market, with the global screen protector market alone worth an estimated $51 billion as of 2023.

Screen Skinz already holds creative licenses with various big-name brands, working with organizations such as the NFL and NBA and entertainment brands like Marvel and the WWE.

Example of Screen Skinz screen protector. Image Credits: Screen Skinz

The latest fundraise allowed Screen Skinz to move manufacturing from Asia to the U.S., allowing it to more easily control its supply chain.

The company is looking to double down on the screen protection industry, and though it currently only focuses on smartphones, there is a plan to one day expand to making screen protectors for tablets. “With our IP, we can essentially develop screen protection for any mobile device that has use for a screen protector and features a backlit display,” Brown said.

Brown described Screen Skinz’s fundraising process as “different,” stating that it took the company about a year to close its seed round. Brown and Canning intentionally took their time, as they also sought to refine their supply chain and prepare inventory for a mass go-to-market. “We wanted to do the work of selling a realistic vision to investors,” Brown said.

Screen Skinz met its co-lead investor, Abo Ventures, through Brown’s network from when he worked at Texas A&M. They then met South Loop Ventures while participating in the DivInc Sports Tech Accelerator in Houston.

Michelle Micone, the former SVP of consumer products at NFL and Hasbro, said she liked that the team had a unique concept and also figured out the manufacturing and logistics of producing it. “Customers want a high level of personalization, but it’s really, really hard to deliver on time and at a reasonable price. Screen Skinz has that formula, and I wanted to be part of it,” she told TechCrunch.

Other investors in the round include Brent Montgomery, the CEO of Wheelhouse CEO, alongside Wayne Pfeffer and Brendan O’Donnel, former directors of worldwide mobile accessory products at Apple. Pfeffer, in particular, was also sold on the idea of making screen protectors more personalizable. “For years, personalizing your device was limited to the case,” he told TechCrunch. “When I saw the evolution to the front on a screen protector, I was sold!

Brown said the company could look to raise as early as next year again. Screen Skinz next has some partnerships lined up and is focused on customer acquisition and deepening licensing relationships.


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Avendus, KKR-backed top India venture advisor, in talks to raise $300 million for new fund | TechCrunch


Avendus, India’s leading investment bank for venture deals, is looking to raise about $300 million for its private equity unit, according to three sources familiar with the matter.

The Mumbai-based firm, backed by U.S. private equity giant KKR, has established itself as the top financial advisor in India, working with popular growth-stage startups including Zepto, Lenskart, Xpressbees, CaratLane and Atomberg on their funding rounds last year.

With its third private equity fund, Avendus plans to write larger checks more frequently, one of the sources said. The firm raised its second fund, amounting to around $185 million, in 2021. Its maiden fund was $50 million in size.

The sources requested anonymity to discuss private matters. An Avendus spokesperson declined to comment.

Avendus first gained prominence as India’s startup ecosystem first started to take shape, capitalizing on the fact that many of its well-known rivals — including Goldman Sachs, Morgan Stanley and JP Morgan — initially paid less attention to the Indian market. That was partly due to deal sizes in the early days: Typically they were less than $30 million, not substantial enough to generate significant fees, making it less attractive for many banner names to engage.

But as the Indian startup ecosystem flourished in the past decade, becoming the third-largest in the world, it has attracted global giants, including SoftBank, Tiger Global and General Atlantic, as well as sovereign wealth funds like Temasek, GIC, ADIA, Khazanah, PIB and Mubadala, which have collectively poured tens of billions of dollars into startups small and large in India.

Avendus employs more than 150 bankers and was the top financial advisor in India last year. It provided services in over 30 deals, including merger and acquisition transactions, according to Venture Intelligence, a private market insight platform.

In the past decade, similar to financial advisors in other regions, Avendus has diversified its offerings, venturing into wealth management, credit financing and private equity. Last year, the firm also expanded its financial advisory services to the Southeast Asian region.


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Evolution Equity Partners raises $1.1B for new cybersecurity and AI fund | TechCrunch


Cybersecurity has had a rough go of it lately, with investment in the sector dropping a precipitous 40% compared to the year prior. But there’s promising early — if preliminary — signs of a recovery.

The vast majority of chief information security officers reported higher budgets for 2024, according to the cybersecurity-focused VC firm NightDragon. And, despite lower overall investment in the cybersecurity industry in Q1 2024, the number of deals increased compared to Q1 2023, per recruitment outfit Pinpoint.

It’s against this backdrop that Evolution Equity Partners, a growth capital investment firm based in NYC, today launched a $1.1 billion cybersecurity and AI fund, the third such fund in Evolution’s history.

The fund — Evolution Technology Fund III — was oversubscribed, with participation from existing and new endowments, sovereign investors, insurance companies, foundations, fund of funds, family offices and angels. It’ll pursue investments ranging from $20 million to $150 million in cybersecurity firms and startups leveraging machine learning and AI to build “market-leading” platforms, Richard Seewald, managing partner at Evolution and one of the firm’s founders, told TechCrunch.

“The Evolution Technology Fund III has already backed fifteen leading cybersecurity companies, initiating its investment period over 12 months ago,” Seewald said. “We expect to invest in a portfolio of up to thirty companies in the present fund. We’ll work with management teams and founders, providing them with support and insight in areas including sales and marketing, product technology, human capital, M&A and business development, really enabling them to excel.”

With Evolution Technology Fund III, Evolution’s strategy will be to reserve ~75% of the $1.1 billion total for early-growth-stage companies, ~15% for later-growth-stage startups and ~10% for earlier-stage VC tranches, with investments to be made not only in North America but in Europe and Israel — a hotspot for security tech.

“Our strategy is to invest that fund in a diversified portfolio across the different stages of maturity,” Seewald said. “We believe that provides private markets investors with diversified exposure to cybersecurity opportunities.”

ESG will be another factor, according to Seewald.

“Evolution is committed to integrating material environmental, social and governance (ESG) criteria in its investment processes and ownership practices,” he said. “We actively engage with our portfolio companies creating diverse boards and leadership teams bringing varied perspectives to decision-making processes, reducing the risk of groupthink and enhancing accountability.”

We’ll hold them to it.

Evolution, which has offices in Palo Alto, London and Zurich in addition to New York, was founded in 2008 by Seewald and Dennis Smith, who met while working together at the cybersecurity giant AVG (now owned by Avast). J.R. Smith and Karel Obluk — the former CEO and chief scientist at AVG, respectively — joined Seewald and Smith to start Evolution after AVG went public.

Evolution’s 30-person teams manages around $2 billion in assets and has backed 60 companies to date; its previous fund was $400 million. Among some of the firm’s more successful bets are Arctic Wolf (which is planning for an IPO), Talon Cyber (which is reportedly in negotiations with Palo Alto Networks for an M&A deal), Snyk, Aqua Security, SecurityScorecard and Carbon Black.


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Sam Altman gives up control of OpenAI Startup Fund, resolving unusual corporate venture structure | TechCrunch


OpenAI CEO Sam Altman has transferred formal control of the eponymously firm’s named corporate venture fund to Ian Hathaway, OpenAI confirmed to TechCrunch. 

The OpenAI Startup Fund, launched in 2021, was initially set up with Altman as its named controller. The arrangement could have presented a major issue to the company if he had not been reinstated as OpenAI’s CEO following his brief ouster in November. The fund’s initial GP structure was intended as a temporary arrangement, and Altman made no personal investment, nor did he have any financial interest, a spokesperson explained. 

The news was earlier reported by Axios.

Hathaway joined OpenAI in 2021 and played a key role managing the Startup Fund, leading investments in Ambience Healthcare, Cursor, Harvey and Speak. He was previously an investor with Haystack, according to his LinkedIn profile.

Last year, the fund had $175 million in commitments, and now holds $325 million in gross net asset value, according to an SEC filing. Investors included Microsoft and other external backers. The unit invests in early-stage AI-driven companies in fields like healthcare, law and education.

The Startup Fund has backed at least 16 other startups, according to PitchBook data. They include Descript, a collaborative editing platform valued at $553 million last year, and Ghost Autonomy, which develops software for autonomous driving.


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SaaS entrepreneur Raisinghani's new AI venture nabs $5.5M to boost sales efficiency | TechCrunch


SiftHub, an AI startup founded by the former CTO and co-founder of LogiNext, Manisha Raisinghani, has raised $5.5 million in seed funding to build out its AI assistant, which is aimed at helping sales and presales teams focus more on building relationships and less on grunt work.

The company’s generative AI assistant is targeting the bulk of non-sales activity that sales personnel have to deal with, like entering data into CRM systems, filing requests for proposals (RFPs), researching customer info and building presentation decks. SiftHub integrates with sources of information like Google Drive, Slack, Zendesk, HubSpot and Salesforce, and sales and presales teams can simply talk to its AI assistant to complete infosec questionnaires, vendor assessment forms, and file RFPs and request for information (RFI) forms. The assistant is available through Slack and Microsoft Teams as a bot, as a Microsoft add-in, a Chrome plugin, and a web app, and has support for 10 languages, including Spanish and German.

“When salespeople are selling to businesses, they should be spending more time building relationships, which has a direct impact on the top line,” Raisinghani told TechCrunch. “When you don’t have to hire so many presales people to do the deep technical work for you, you’re saving time and that impacts your bottom line,” she told TechCrunch.

SiftHub’s AI assistant is built on open source large language models (LLMs) and is supported by retrieval augmented generation (RAG) technology, which uses additional data sources to fine-tune the quality of content generated by AI. Using RAG on top of LLMs helps SiftHub limit hallucinations — a common issue with generative AI, where the system generates incorrect or misleading results. The startup also uses cross-encoders to prevent its platform from picking the wrong information from a given knowledge base. Cross-encoders analyze two queries simultaneously, instead of looking at each separately, to deliver more accurate answers.

“We would rather not give an answer rather than give the wrong answer,” Raisinghani said. The founder added that SiftHub’s system might give 5% fewer answers, but she is confident that at least 75% of the AI’s responses will be correct.

SiftHub also uses a “smart search algorithm” that considers the recency of documents or knowledge sources to surface relevant recent information, Raisinghani said.

After spending over 10 years at LogiNext, Raisinghani saw the need for a solution like SiftHub when she was advising blockchain startup Polygon Labs in 2022 on its enterprise go-to-market strategy. She realized that finding information about Polygon was an arduous task because data was not available through a single channel, as it was stored across multiple platforms. Sales and presales people need a lot of info about their company and its business operations when they reach out to their potential customers. Finding that info through different sources, including the company’s Slack channels and other unorganized documentation, is a cumbersome task that can take a lot of time.

She then spoke with about 200 users to understand the problem statement better and categorize their responses into different use cases. All that eventually brought her focus to sales and presales teams.

“Sales teams have a shadow team — a presales team or solutions engineers — and they are usually the unsung heroes of the organization. They do a lot of the technical work, right from filing RFPs (request for proposals) to finding answers to customers’ questions,” she explained. “If you’re saving time for both sales and presales, salespeople will automatically be able to spend more time on relationship building.”

The market for AI startups focusing on sales and presales operations has gained traction in the past year since generative AI took off. Companies across the spectrum, from giants like Salesforce, Zoom and Google, to startups like Quilt, People.ai, and Darwin AI, have built GenAI-powered tools to let salespeople simplify a wide array of tasks like filing routine forms, generating drafts for emails, filling up CRMs with publicly available information on customers, generating copy, getting suggestions on which prospective customer is likely to buy or churn, and much more.

However, Raisinghani believes that SiftHub has a distinctive edge, as it sits deeper in customers’ business workflows and can solve the entire sales response problem — unlike a “wrapper around OpenAI or any other LLM.”

The startup is also banking on Raisinghani’s own experience in scaling startups and its team of 15, which includes some ex-entrepreneurs. “When you’re going to give at least 10 years of your life to something, you want to make sure that you are going to be excited and you truly believe in it for the next decade,” she said. The company is headquartered in the U.S. and has an R&D team in Mumbai, India.

The funding will be used to hire more people in product R&D, enhance the product, and help the company go to market. The seed round was co-led by Matrix Partners India and Blume Ventures, with participation from Neon Fund as well as executives and founders from Superhuman, Cloudflare, DevRev, Razorpay and SuperOps.

SiftHub is initially targeting B2B companies selling to mid-market and enterprise customers with revenues between $50 million and $500 million. The AI assistant is currently available to a small group of users for early feedback, and the startup is planning a “full-blown launch” later this year.

“Buyers have become smarter and engage sales later in the buying journey, with more advanced questions. As a result, the expectation from sales teams has changed — they need to know advanced product, technical, and legal information to get the win. Sales and presales teams lack the necessary tooling to handle this new selling environment. We are excited by SiftHub’s vision to use AI to manage product knowledge so that sales can focus on relationships,” said Pranay Desai, a partner at Matrix Partners India, in a prepared statement.

“SiftHub is Manisha’s second venture in the SaaS space. Armed with over a decade of entrepreneurial experience and an impressive track record, Manisha and her team are building a game-changing AI platform to transform the entire sales and presales process. We are excited to back the SiftHub team and be a part of their ambitious journey,” said Sanjay Nath, a partner at Blume Ventures.


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The UK threw a splashy event in New York this week to woo more American VCs TechCrunch |


A 3D hologram, dubbed the Ever-Changing Statue, will be on display at the Rise by Barclays workspace in New York until April 4.

Sipping wine and nibbling burrata, a group of government officials, reporters and founders gathered at its unveiling, watching as the hologram flickered a display that alternated through images of some of the U.K.’s top unicorn founders like Tessa Clarke, the co-founder of food waste startup Olio, and Alexander and Oliver Kent-Braham, founders of insurance startup Marshmallow.

The display celebrated the U.K. as the third $1 trillion tech economy, preceded only by the U.S. and China.

While Brexit has had its economic impacts, U.K. officials want American VCs to know that since 2020, its tech ecosystem has seen healthy development. Dealroom data shows that U.K. startups raised $31 billion in venture capital in 2022 and $41 billion in 2021. Last year, the U.K. raised $21 billion in venture capital — though that is a dip, with the market retraction in mind, it is still more than what France and Germany raised combined. It’s also still more than the $18 billion the U.K. raised in 2019 and the $12 billion raised in 2018.

It seems that even Black founders, a group historically struggling to secure funding, are seeing progress. Between 2009 and 2019, only 38 U.K. Black founders raised venture capital funding—that number now stands at 80, according to an updated report by Extend Ventures.

The U.K. says it’s home to more than 160 unicorns and 12 decacorns (companies worth more than $10 billion). Fintech is a particularly stand-out area, including Monzo, Revolut and Wise. With the rise of DeepMind and Benevolent AI, it’s also becoming the hub for artificial intelligence. And there was more than a little hushed pride from those at the event that it’s also the home of OnlyFans.

The hologram — and the British government officials — are selling potential as the main draw to the U.K., a sales pitch clearly designed to boost a sluggish economy.

The hologram featured some of the top founders and CEOs in the U.K. Image Credits: GREAT

Although talent from other European countries might have slowed in the U.K., there is still an influx of immigration from other countries, meaning an inrush of ideas, hires and, once again, potential. Other cities in the country have also flourished, such as Manchester and Cambridge.

Rodney Appiah, the co-founder of the U.K.-based venture firm Cornerstone Ventures, spoke to TechCrunch about some of the holes that are waiting to be filled in the U.K. He said there is room for more funds and accelerator programs, alongside a desire to have more senior talent that can help companies move from early stage to growth.

Paul Taylor, the CEO of Thought Machine and one of the people depicted on the hologram, echoed the need for more venture funds dedicated to the region, saying that U.K. companies typically have to obtain foreign investors when they grow.

“The U.K. tech ecosystem has made significant strides, but work remains to reach the scale and influence of Silicon Valley,” Taylor told TechCrunch.

At the same time, Appiah said the ecosystem is dealing with the rise of more emerging managers, micro funds and, finally, access to more risk capital. “We are also seeing more VC involvement from cash-rich [corporations] and institutional investors seeking to diversify.”

Having the hologram in New York is clearly an attempt to grab the attention of American startups and investors. A 2023 report by HSBC Innovation Banking — previously SVB — showed that U.S. investors were the largest source of funding for British startups last year. The Times reported that more American tech entrepreneurs are buying up real estate in London, while NEA, Bessemer and a16z have all opened offices there in the past few years.

On the other hand, not all investors have faired well with their attempts to invest out of London. Two high-profile investors, Omers and Coatue, recently significantly downgraded or shut down their European outpost operations based in London.

However, perhaps the biggest draw for Americans is that the British seem willing to work with investors and founders to shape the tech ecosystem. In fact, friendly regulation was one reason a16z opened its crypto office in London, as the U.S. was looking to impose regulations on the industry.

Prime Minister Rishi Sunak — who created the Unicorn Kingdom initiative — unveiled a plan last year to invest £370 million (around $468 million) to support the country’s tech ambitions. Last summer, the British government announced an agreement with the country’s nine largest pension funds to start investing assets in startups, a move the government predicted could unlock £50 billion in capital if the rest of the pension industry decided to invest in startups, too.

It’s no wonder, then, that the hologram, sparkling in red, white and blue, was sold as a sign of the future. “Creating a two-way road between the USA and U.K. is a win for both countries,” Clarke said.

The statue, created by the British company HYPERVSN, will be on display until April 4.


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