The UK is a global leader in R&D investment at seed stage.
But we aren’t scaling those innovations.
I spent yesterday at two events in London, both shining a light on the challenges - and opportunities - of scaling the tech we need.
First, the techUK and VenturePath session on securing scaleup investment.
Then, the SETsquared Partnership Investment Futures showcase.
What stood out to me from the morning?
While the UK excels in early-stage R&D investment (37% of seed funding compared to 32% in the US), there’s a glaring gap in later-stage funding, particularly in deeptech. The US allocates 1.4x more to these sectors at scale.
This gap matters. Without sustained support, our most innovative startups struggle to thrive beyond seed stage.
And the afternoon?
At SETsquared, the value of of R&D-intensive startups tackling challenges in health, climate, and beyond was clear.
And plenty of people including investors in the room – a sign of SETsquared’s reputation for producing high-quality ventures.
But the question remains: how do we scale these businesses?
I was invited to join a a roundtable on talent, and the answers became a bit clearer.
Scaling isn’t just about money - it’s about leadership.
Investors need confidence in the right team, but hiring leadership talent for scaleups is a tough challenge.
"Scaling experience" is often mistaken for "big company experience," but they’re not the same. Plenty of stories in the room highlighted how hiring based on logos alone can backfire.
Stats from the morning session brought it home - 2,000+ companies took seed funding last year, but fewer than 200 made it to Series A.
That’s a very narrow pool of scaling experience.
And even then, aligning on culture is another challenge altogether.
So, what’s the solution?
Maybe awareness of startup and scaleup realities across broader talent pools?
Building networks that connect scalers with innovators?
More support for founders on hire to right person, not just read a CV?
If you've got ideas on this let me know!
In the meantime two great events that highlight how we need to better align scaleup talent and funding, so they work together rather than remain obstacles in isolation - thanks to everyone who helped organise and support.