The Rundown: Edition 24 – A Tech-friendly Budget, space funding boost, and designer babies
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Tax-raising budget offers hope for entrepreneurs
Taxes will rise by £30 billion over five years, pushing the tax burden to a record 38 per cent of national income, but there were several positive measures for fast-growth businesses, including enhancements of EMI, VCT and EIS. Times
British Business Bank announces tech-focused strategy
The British Business Bank has unveiled a five-year strategy aimed at reforming how small businesses access funding. The strategy will focus its investment efforts on higher-risk tech scaleup deals, with the aim of stimulating growth. UKTN
NHS-backed VC invests in AI startups to tackle mental health
Meridan Health Ventures is investing in two AI startups, Affiniti AI and Hologen AI, having previously raised £20 million for its Innovations in Mental Health fund at the end of last year. Times
Klarna launches digital tokens
The Swedish fintech firm has announced plans to launch a stablecoin, which it claims will “dramatically reduce costs for both consumers and merchants”. Stablecoins, often pegged to USD, would help reduce the costs of moving large amounts of money globally. FT
€1.2bn for European space defence network
The European Space Agency (ESA) has agreed an investment programme to serve “military as well as civilian requirements”, with UK industry and universities expected to receive substantial funding. FT
Procure AI raises $13m Seed round
The London-based business, which is developing technology to transform procurement into an autonomous, data-driven function, has announced a $13 million Seed round led by Headline, with participation from C4 Ventures and Futury Capital. Tech Funding News
Drone operator StirlingX secures $11m Seed funding
StirlingX, a drone operations and data intelligence company, has closed its Seed round at $11 million, led by the RCM Private Markets Fund, with participation from new and existing investors, including GALLOS Technologies and ONE9. Tech.EU
Revolut alumnus raises £2m for AI startup
Monq, an AI procurement business launched by Revolut and Deutsche Bank alumni, has secured a £2 million round led by Outward VC, with investment from Cornerstone VC, Portfolio Ventures, Octopus Ventures and Lakestar Halo. UKTN
Britain’s innovators react to the Budget
Experts sharing their reactions to the Autumn Budget include Duncan Johnson, CEO of Northern Gritstone; Martin Jacob, Professor of Accounting and Control at IESE Business School; Tanya Suarez, CEO of IoT Tribe; John Dunlop, Head of Tax at Marriott Harrison; and Stuart Mellis, CFO of Optalysys. Entrepreneur, UKTN, Startups.co.uk
Dissecting the Budget smorgasbord with the Times
Discussing the “high tax, high spend” budget on The Business, the new podcast from The Times, Steve Rigby, CEO of Rigby Group, joined presenters Hannah Prevett and Dominic O’Connell, alongside Times Business Editor Richard Fletcher. The Business
Cybersecurity grows thanks to AI
European cybersecurity startups received 52% more funding this year as investors move to counter AI threats. A big driver in demand are the “dozens of new attack vectors for bad actors”, according to Carlos Alberto Silva, Managing Partner at 33N Ventures. Sifted
Did ACF Investors help shape Government policy?
Tim Mills, Managing Partner at ACF Investors, made the case for the Government to increase the Enterprise Investment Scheme (EIS) limits, calling it a “Budget imperative”. Two days later, that request came to fruition. IFA Magazine
The budget and private markets – what to expect
John Dunlop, Partner & Head of Tax at Marriott Harrison, shared how the buildup and rumoured leaks could reshape the landscape for investors, fund managers, and entrepreneurs. Startups Magazine
And now for something completely different – a section without any Budget news. Shocking, we know.
First, a New York-based startup called Nucleus Genomics will enable parents to “genetically optimise” their “best baby” for just $8,999. The company permits those undergoing IVF to perform a full DNA sequence of up to 20 embryos to identify conditions such as autism and ADHD, but also allows for the detection of traits such as eye colour, height, and intelligence. This is, clearly, a highly divisive topic, with designer babies banned in most jurisdictions – yet the tech industry is trying to create them anyway.
Second, Thames Valley Police and Hampshire & Isle of Wight Constabulary have become the first police forces in the UK to use an AI assistant. ‘Bobbi’ is designed to communicate with the public and offer human-like responses for non-emergency questions. This comes after the UK has trialled AI cameras to detect phone offences. However, across the pond, concerns about AI-written police reports are growing.
Third, can a drone wall really work? The EU and NATO are floating the idea of a “drone wall” that would be comprised of existing technologies – radar, acoustic and infrared sensors, radio jammers, counter-drones and laser guns – to reinforce European skies. Indeed, the recent wave of drone attacks and sightings in Europe has made the concept of a drone wall all the more pressing. One such company working to build an anti-drone wall is Kvertus. The Ukrainian developer and manufacturer of anti-drone systems/electronic warfare (EW) launched Project Atlas earlier in the year. This is a crucial 1300km initiative across the frontline to jam enemy drones, in order to save the lives of civilians and soldiers while also protecting critical infrastructure.