Mawson: As a serial entrepreneur, why have you been brought into UK government? Can you provide some background for our readers?
Wade: The venture capital unit was established in June 2012 as a result of a government strategy designed to connect exciting early-stage UK companies with international investors – to create targeted dealflow. We have recruited successful entrepreneurs and experienced investors to help us deliver this ambitious programme.
Mawson: Why is now the right time?
Wade: As an entrepreneur, I am witnessing a tremendous upsurge in entrepreneurism in the UK over recent years. However, a number of the traditional funds are no longer active in venture capital (VC), and for my recent companies I have had to go to the west coast of the US to get them funded. Alongside this, the government has created some smart policies, such as the Entrepreneur Visa, the Patent Box, and generous tax incentives for investors, entrepreneurs and innovative companies. These will only help us attract, grow and increase entrepreneurial talent in the UK. I am also encouraged by the appointment of Joanna Shields [former chief executive (CEO) of Bebo, and European CEO of Facebook] as the CEO of [London’s] Tech City and a business ambassador. For many reasons, the UK is attracting an incredible wealth of entrepreneurial talent that is starting up and spinning out companies across a range of sectors and I’m delighted to be part of the effort to support this.
Mawson: What else are you focusing on?
Wade: London is part of a hub connecting the rest of the UK. The whole country is in effect a highly connected network of technology hubs. There are new developments that epitomise the current climate, such as Google’s announcement to cement its European headquarters in a huge new building in London. However, the UK also has an unparallelled academic history and science base, which has already created numerous billion-dollar companies. ARM Holdings and Solexa are two great examples. It is worth noting the booming life sciences sector and the ever-growing presence of clean-tech. We are very conscious that these sectors are major strengths of the UK where there are significant opportunities for investors.
Mawson: How does it actually work? Is there a hidden cost?
Wade: No cost. The value comes in attracting investments and supporting the venture ecosystem. The government wants to ensure the next generation of global companies born in the UK stay here, rather than moving abroad. To put it simply, we are connecting the start-ups with the investors. We are working hard to understand where the really exciting companies in the UK are located, and ensuring they are introduced to smart money that enables them to flourish.
Mawson: What role do you see corporates playing?
Wade: Corporates are key. We have brought in Paul Morris, who established and ran Dow Chemical Europe’s corporate venturing arm for 15 years, to lead our interactions with corporate venturers. We know there is significant cash held on the balance sheets of corporates and they are increasingly looking to strategic venture investments to enable them to continue to innovate. There appears to be a trend lending itself to more corporate activity in this space. We regularly get requests from VC funds asking to be plugged into our network of corporate venturers as they become increasingly attractive co-investors on deals.
Mawson: How is it going so far?
Wade: We have been active in our current structure since the autumn and have already seen a number of investments from the connections we have made. We are now putting in place the infrastructure to ensure the investment pipeline is well stocked for the foreseeable future. A great example of
this is the recent announcement that TechStars is coming to the UK. We hope this will be the first of many good news stories over the coming months.
Mawson: How do our readers get more information?
Wade: Come and see us. We will be at the CVII Palo Alto event on March 5 co-hosted by Global Corporate Venturing, and at the GCV Symposium in London in May. Alternatively, drop our corporate VC director, Paul Morris, an email [paul.morris@uktivc.com]. If you are coming to the UK let
us know – we will be happy to discuss creating a bespoke programme of introductions to interesting companies.