As we step into 2024 we wanted to reflect on what’s been going on here at FPC and, in this edition, particularly in the context of our early stage innovation-focussed fund UK Innovation & Science Seed Fund (UKI2S).
We’ve spent a lot of time discussing, exploring and working out how best to support the multitude of innovative ideas that our great founders of today are eager to bring to market. Because that’s my biggest finding thus far; your innovations are only as good as your ability to commercialise them.
So what happened in 2023?
At the end of 2022, cash inflow within the venture capital industry had dropped by 90%. Inflation was rapidly rising and interest rates were going up with it.
There was a profound sense of pessimism within the industry and so 2023 was spent working on existing portfolio companies – just trying to keep them alive.
Organisations needed to generate enough revenue to cover costs and break even with bridge rounds. Incredibly, many companies achieved that. I think it’s fair to say that the bleak clarity everyone had coming into 2023 set them up to over-achieve; the forecast under-promised, many ended up over-delivering.
It was a good year here at FPC – we grew our assets by 20% – mainly driven by investment from the government in their determination to commercialise and scale up… As for 2024… we will be very busy again but one issue will be top of mind.
Climate change is no longer an existential threat for the decades ahead – it’s evidenced in the geopolitical realities we face today.
As we witnessed during COP28, Abu Dhabi and the UAE were willing to lead the charge to voluntarily act to reduce fossil fuel usage. Their role and diplomatic skill in including fossil fuels for the very first time at a COP meeting was notable. And yet it really shouldn’t have been. The negative impact of continued fossil-fuel-driven climate change is undeniable – countries across the globe are facing water shortages, high levels of air pollution, financial poverty, loss of biodiversity and insufficient food security.
As a result, we’re facing crises of both environmental and human health. And it won’t stop there unless we focus on making drastic changes in one particular industry currently dependent on hydrocarbons: food.
We must create sustainable food systems and work towards ensuring global food security. Over 2024 we’ll be looking to focus on food and related life sciences as one of our top priorities.
How can we do that? Click here to read the rest of Douglas' piece and learn more.
