AI Investment Trends: UK, Europe, and Taiwan
Michael Dimelow - Chief Commercial Officer | Bloc Ventures
Lawrence Lundy-Bryan - Partner | Lunar Ventures
Koen Vandecaveye - Business Developer | Nordic Innovators
John Spindler - Founder and General Partner | Twin Path Ventures
Chris Wiles - Director | Foresight Group Ventures
This panel session brought together seasoned investors and industry experts to explore the current state and future direction of AI and hardware investment, especially from a UK and European perspective.
Key Highlights
1. AI & Hardware Investment Landscape
- Generative AI and software have attracted enormous capital, with OpenAI receiving $60B, highlighting investor enthusiasm.
- There's increasing interest in AI hardware, especially AI at the edge, requiring a shift from pure software plays to robust, capital-intensive innovations.
- Michael emphasized investing in what you understand, focusing on semiconductors, unique IP, and technologies that can scale internationally.
- Lawrence mentioned interest in neuromorphic computing as a promising frontier.
2. UK Strengths & Challenges
The UK holds strengths in IP, engineering talent, and edge AI, but faces:
- Limited capital pools, especially for capital-intensive deep tech.
- A shortage of world-class entrepreneurial leadership.
- Challenges scaling companies beyond Series B without turning to US markets.
3. Investment Risk & Strategy
- Investors assess startups through multiple risk lenses:
Product-market fit, people risk, manufacturing risk, and scientific risk. - There’s a need to de-risk funding by aligning early with Series A investors, especially from the US.
- VCs play a crucial role in prioritization and supporting founders to hit fast milestones that attract further investment.
4. Scaling & International Strategy
- While building global champions within the UK is a goal, scaling internationally might be more pragmatic for global relevance.
- Building early adopter customer relationships is critical for traction, especially in hardware and deep tech.
5. Europe’s Coordination Gap
- Europe’s fragmented markets and political hurdles pose barriers to coordinated scientific and infrastructure investment.
- There’s a clear call for a pan-European agenda to address infrastructure costs and facilitate larger, more sustainable markets for deep tech.
6. Entrepreneurship & Talent
- The entrepreneurial mindset—especially the willingness to take big bets and hustle—is more prominent in the US.
- Europe struggles with hiring senior executives with the right risk appetite and scale experience, prompting some startups to relocate key roles to the US.
Action Items
- Engage Series A investors (especially in the US) early to understand risk thresholds and funding criteria.
- Explore a coordinated European initiative to fund scientific infrastructure and reduce fragmentation.
- Foster partnerships with Taiwanese companies to help UK deep tech scale into global markets.