Eric Van der Kleij

To everybody working on hydrogen plans for government, large companies and startups: I would strongly adivise you to read this article in yesterday's Financial Times!

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Really British Business Bank? On the day Trump wins with an America-first agenda? Artificially splitting away the UK from the EU is really sad to see. Chris Elphick, Mark Sims and team, isn't it time, 8 years after Brexit to bury the axe with the European Investment Fund (EIF) folks and restart to think of the European tech and VC market as one? Deeptech needs it Defence needs it And I'm not even speaking for myself because for now I'm not planning to leave my soloGPing and pitch gvt LPs.... .... it's really something we should all seriously think about. Especially where America is going. The NATO Innovation Fund (NIF) exists but is it enough? Shouldn't we start changing the culture (and LPA restrictions) that Britain-first, France-first, Spain-first, etc create on the asset class. You know me, I always joke about it. After Tuesday night, maybe it's something to seriously consider. #venturecapital #europeantech #resilience

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Taavet Hinrikus and I made the Financial Times Due Diligence email. https://lnkd.in/ez2AuGQx One 'unintended consequence' is that if there is a 45% tax on carry and CGT (raising £40m per year, remember) it for all intents and purposes closes the door on new VCs in the UK. Especially started by teams from non-traditional backgrounds. To meet the GP commit, you need to be already part of the 'wealthy' as you cannot rely on the value you create - nearly half of it will disappear - to fund it. We have both had extremely successful startups which are few and far between. The smaller number of new VCs will therefore more likely increasingly be for people who have inherited the capital or can draw it from their already rich family. Probably not want they have in mind with this policy.

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https://lnkd.in/ehEfb6Q8 The UK’s commitment to an 81% emissions reduction by 2035 is ambitious, and will be very challenging to meet, but it is a great target to set. A broad spectrum of technologies are required from wind, solar and storage to hydrogen, SAF and nuclear. Critical to success is all of them is a focus on innovation, skills, and learning so we can bring down costs and minimise the impact on everyday life. Investments in technologies that can reduce the cost of decarbonisation are crucial. Take aviation, for instance: long-haul flights remain critical for connecting people globally, and are also a significant source of emissions. But instead of restricting flights, we should focus on innovations within Sustainable Aviation Fuels (SAF), such as new Power-to-Liquid (PtL) pathways like we are developing in OXCCU TECH LTD. These fuels can directly replace traditional jet fuels in existing aircraft. As these fuels scale, costs will decrease and aviation can decarbonise without compromising accessibility. This model extends beyond aviation to industries like shipping, heavy industry, and agriculture. With continued support toward innovation and pragmatic climate policy, sectors can balance emissions reductions with affordability. In this way, the government can “tread lightly” on people’s lives while advancing toward net zero. This approach offers a pathway to a secure and sustainable future, where technological progress addresses the emissions challenge without compromising the freedoms and opportunities central to modern life. #COP29 #NetZero #Aviation #ClimateTech

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My thoughts on the TSF (Token Subscription Facility) Funding It can be a good system for large projects trying to fund Series A where that practice can be leveraged to gain more market % over time the liquid term lasts so it offsets enough price increase that it's at the upper level against the contract and is actually beneficial. To cover some points that are usually used as USPs of TSF: Value Proposition: 1- Preserving Tokenomics: XYZ’s model minimizes dilution and preserves a significant portion of the treasury, ensuring flexibility for future opportunities. 2- Reducing Sell Pressure: Our structured approach and threshold pricing protect the token’s value and reduce downward price pressure, aligning with long-term growth. 3- Pre-Listing Validation: A TSF agreement acts as third-party validation, similar to a cornerstone investor, inspiring confidence and attracting early investors and partnerships. 4- Post-Listing Stability: Unlike OTC deals, XYZ’s model ensures funding is incremental and aligned with the project’s success, avoiding the risks associated with large one-off sales to unknown buyers. 1) Dilution is set up in advance via Market Makers and token advisors to create the optimal vesting release schedule and funding stages that align with the project's targets. 2) As per aforementioned tokenomics, sell pressure is controlled by the pre-determined vesting schedule and the market maker. All the calculations are made in advance accounting for the worst case scenario where everyone offloads assets as the vesting comes to maturity. This is a combat of philosophies, is it better to use funds to advance your project and grow it organically so the shareholder value increases or just take money over time and buy back tokens to uplift the price while the credit line lasts. The first option is better for the long term in my humble opinion. 3) If they are a well known VC then yes, it shows traction and gives some backing to the project's claims, but essentially just a standard investment would do the same. 4) Selling discounted OTC tokens from the Treasury means the project can't raise the new/next round and due to delays or bad financial projections for burn rate and float has drained the funds before time, which however you look at it doesn't bode well for the projects success down the road. To circle back to their claim of long-term approach as a signal of future stability, it works only for well funded projects that will use the liquidity injection for aggressively attacking the market and expanding faster than the competition to try and get the first mover advantage that will hopefully net positive results long term if everything goes well, if not as these tranches are defined with the contract before the TGE, they will probably always be buying with a discount (essentially their interest rate on the credit line) and as long as the token keeps going up will be willing to keep providing assets. #fundraising #VC #Web3 #TSF

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Great insights from Sophie Purdom and Sightline Climate (CTVC)'s latest analysis on the H1'2024 climate tech funding market. Tough economic conditions have continued to see a stagnation in ClimateTech funding and deal count - there is a sense of cautiousness among corporates, consumers and investors, reflecting broader trends of the venture market. ClimateTech deals are still happening but the challenges faced by companies funded 2-3 years ago (now at Series B+), who are taking longer to de-risk their technology and achieve scalability, have created an environment of heightened investor scrutiny, even at the early-stage. However, there are still positive signs from what I've seen locally: 📈 ClimateTech remains a high priority in Australia, with $344M from 10 deals, including some large rounds, as reported in Cut Through Venture's Q2 2024 Report. https://lnkd.in/g3CK5p2W 🔀 More flexible forms of capital, such as debt, grants, and philanthropy, are becoming more readily available. E.g. Australian Renewable Energy Agency (ARENA) received a funding boost in the recent budget. 💫 Growing founder pipeline with ClimateTech communities remaining strong (e.g. Melbourne Climate Network and Climate Salad). I'm keen to hear the insights from the Climate Salad team for their upcoming Aus Climate Tech Industry Report. Sign up for their launch here: https://lnkd.in/gPYsRqZw #climatetech #funding

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Striking: Zenobē, a UK climate tech startup, raised £600m from KKR and £270m from Infracapital, bypassing VC entirely. Zenobe captures excess energy from wind farms to stabilize the grid and reduce gas power reliance. This means: Zenobe secured one of 2023's biggest startup fundraises — without any venture capital. #battery #fundraising #venturecapital #energystorage #infrastructure #growthinflection Sifted: https://lnkd.in/g8wF-xA5

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Climate financing is going to the wrong places! Really insightful snapshot into the relationship between emissions and Climate tech VC by Daria Saharova (partner at World Fund) She states that: “85% of emissions receive only 52% of funding” And interestingly: - personal behavior change will reduce only 4.3% of emissions - technologies already in the market will account for 49.8% - technologies under development and in need of investment will need to fill in the rest. “46% of emissions will be reduced by technology that’s yet to be developed, and this is the tech we desperately need. Thanks for this Daria Saharova, really insightful.

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2024 LAVCA Trends in Tech - LAVCA https://buff.ly/4dfL6Qf by @LAVCA sector and country-specific breakdowns, average round sizes across investment stages and the current role of global investors co-investing alongside local fund managers! #rafAIgual #vc #trends #investment #latam

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Numbers & insights from a deep tech venture studio that launched 11 companies (all are active) in the last 7 years, reaching £85M valuation across the portfolio: 1. Post Urban, initially bootstrapped by Luke Robinson, an academic with a PhD in physics from Cambridge, now operates with external funding from a UK-based fund. 2. Launched 5 companies during the first 5 years and 6 companies during the last 2 years. 3. All 11 completed pre-seed rounds; 1 of them got Series A, 2 of them are approaching their Series A. 4. The startups have collectively raised ~£25M in venture capital, in addition to receiving grants. The total valuation of the 11 companies is ~£85M, half of which have not yet undergone subsequent funding rounds. 5. Initial equity splits: the venture builder 20%, CEOs of startups 35% (vests over 4 years), CTOs – 20-25%, employees 10-15%. 6. The initial valuation of startups was £2 million, with £300K invested by the venture builder. The last 2 startups were at £3.5-4M initial valuation. 7. Building deep tech ventures requires significantly higher initial funding because these projects need more time to develop demonstrable products. Two portfolio companies hit £1M in ARR. 8. The venture builder has increased the capital for the last 2 startups to ensure they reach meaningful milestones. The CEOs of the startups were able to secure additional funding through their networks, £350K and £450K, respectively. 9. The deep tech investor pool is smaller than that for sectors like SaaS, which requires a stronger proof of concept and market readiness to attract funding. 10. 3-4 times, potential customers became investors in Post Urban Ventures. This is a great approach because it secures investment and validates the concept by gauging whether these potential customers truly believe in the solution and its market necessity. 11. They don't start with a technology or an idea; instead, they integrate insights about global problems and, by actively engaging with advisory boards, founders, and industry experts, identify pain points and align them with technological solutions. 12. They do not bring universities in as co-founders but source scientists or professors to contribute to research and development. This involves leveraging academic expertise to support the technical aspects of startup projects until a prototype is developed. 13. The studio maintains strong connections with major academic institutions, including Cambridge, Oxford, Imperial College, and UCL, supporting its deep tech focus and facilitating access to new technologies and potential founders. 14. Areas of focus in deep tech: AI (Knowledge Graphs, NLP, DNNs, Computer Vision, Edge AI, Active Learning), Quantum Technologies, Biotech, AgTech, Enterprise SaaS. Watch the full interview to gain insights into the portfolio companies, handling IP collaborations with universities, key challenges, and team construction: https://lnkd.in/dCi7fZ7G

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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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🔬💡 New research from the British Business Bank reveals a promising trend: life sciences #venturecapital funds are outperforming the market in realized returns. 🚀📈 It’s no coincidence that at ETA Technologies, we’re proud to work with many investment firms focused on life sciences #startups. Why? We leverage the power of psychometric testing combined with #AI to identify the highest-potential teams — because in the life sciences world, investing in people is key. 👥🔑 🧬 Discovering a brilliant scientist with a groundbreaking invention is one thing. But finding a team that blends #innovation and entrepreneurial grit to transform that idea into a successful business? That’s where true unicorns are born. 🦄🌟 source: https://lnkd.in/ektyKZHJ What qualities do you think make a life sciences team truly investment-worthy? Let’s discuss! 👇

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Owning a niche and solving key customer needs, the key to DeepTech Commercialisation? At Empirical Ventures, we often encounter groundbreaking scientific innovations facing a dual challenge: - Developing novel technology - Proving that this technology solves a pressing market problem For startups, one crucial factor that is often overlooked is speed of execution. Talent and intellectual property are all critically important, but the ability to move swiftly is what allows startups to enter new markets before incumbents. In DeepTech, focusing on a market niche perfectly aligns with the benefits of speed. Examples of niches in DeepTech: Performance Niche - These customers adopt new technologies to outperform competitors or showcase their innovation capabilities to outside stakeholders. Bottom-Line Niche - These customers face immediate pressures that impact their profitability and are motivated to engage with emerging solutions. Silveray’s recent funding round exemplifies these dynamics perfectly. Their flexible digital X-ray detectors have broad potential across industries. However, it is their traction in the aerospace sector and specifically weld inspection that got us excited. For Silveray the niche is driven by two critical factors: Regulatory Pull: Upcoming legislation mandates the digitization of existing and future X-ray film records. Cost Savings: Silveray’s solution delivers significant financial benefits, making it highly attractive to customers facing bottom-line pressures. Silveray have the only viable solution for the digitisation of industrial weld monitoring. With only moderate penetration of this market (<2%) we believe they could generate 8 figure revenues by 2030. This nicely highlights that niche's can be lucrative in the right industries. Great to welcome Dan Cathie and the team at Silveray to the EV portfolio. Looking forward to supporting them as they continue to grow. CAPITAL AT RISK, FOR PROFESSIONAL INVESTORS ONLY

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🚀 Join Us at AI Forge Incubator: Meet Solo Founders Seeking Co-Founders! 📅 When: Wednesday, 29th May 📍 Where: The Old Street Gallery, 62 Paul Street, London, EC2A 4DQ 🕒 Time: 5pm-9pm Are you a visionary CTO, CPO, or commercial expert ready to make your mark in the AI start-up space? Here's your golden opportunity! ✨ What's Happening? Our solo founders are in week 5 of a 12-week intensive incubator program. They are actively seeking co-founders to join them as CTOs, CPOs, or in commercial roles. These companies will be pitching to 450+ investors during the week commencing 8th July, with a high probability of securing funding. 🌟 Why You Should Attend: Dive into the world of promising AI start-ups. Contribute your skills immediately by joining an existing business. Be part of the prestigious AI Forge incubator program. Potentially integrate your own business ideas into an evolving proposition. Network with talented individuals and successful entrepreneurs. Gain invaluable insights and advice from seasoned founders and mentors. 🔎 Types of Businesses Seeking Co-Founders: Our 9 solo founders are leading ventures in: EdTech SalesTech LegalTech FemTech MedTech MarTech 🎉 Event Highlights: 💬 Speed Dating Sessions: Quick, focused interactions to maximize connections. 🔍 Pre-Matchmaking: Initial meetings set up to streamline the matchmaking process. 🤝 Networking Opportunities: Explore collaboration possibilities with like-minded entrepreneurs. Don't miss out on this unique chance to partner with innovative AI start-ups and accelerate your career in the tech industry. Register at Seeking AI Co-Founders · Luma - https://lu.ma/f22d1ih9 #AIStartups #CoFounders #TechInnovation #Entrepreneurship #Networking #AIForge

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7 of the most active seed stage funds in the UK. 💸💸💸 These are the funds that have been the most recommended to me for the B2B software space. SFC Capital - An SEIS fund that typically invests at Pre-Seed, Seed and Series A. From what I could see funding is usually between £100k and £300k at pre-seed. Octopus Ventures - Typically invests up to £1m for Seed funding rounds. Ascension - Typically invests between £500K and £5m. Fuel Ventures 🚀 - Check size of £1-3M at Seed stage LocalGlobe - Seed and Series A fund. Mercia Asset Management PLC - Mercia manages a number of different funds and can invest from Pre-Seed through to Series A with ticket sizes of up to £10m. Haatch - Invests between £300 - 800K at Seed stage. If there's any other seed stage funds you'd recommend please let me know in the comments 

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HETI RIPORT #UK #impact_investments Impact investments managed in the UK reached £76.8bn at the end of 2023, a 33.3% increase on 2020 figures, according to a study published yesterday by the Impact Investing Institute. The report, entitled The UK impact investing market – Size, scope and potential, was produced through a market survey and engagement with more than 100 stakeholders, estimates the amount of direct impact investments for which the majority of investment management activities occurs from the UK (the capital managed may be invested outside of the UK). It shows an increase of £19.2bn compared with the end of 2020, when the first iteration of the report estimated the size of the market at £57.6bn.

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Standard Chartered pioneers green finance with carbon removal startup UNDO. • StanChart breaks new ground by offering commercial debt to UNDO, a carbon removal firm using Enhanced Rock Weathering (ERW) - a promising yet controversial approach to fighting climate change. • This innovative financing model, backed by British Airways advance credit purchase, could unlock scalable funding for nascent carbon capture technologies. • ERW shows potential for dual benefits: sequestering CO2 for millennia while improving soil health and crop yields. But questions remain about its ecological impact and verification challenges. Is this the financial catalyst needed to scale carbon removal, or are we overlooking simpler climate solutions? What are your thoughts on ERW as a viable carbon capture method? #CarbonCapture #ClimateFinance #SustainableInvesting #CleanTech #NetZero

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