The Rundown: Edition 16
Welcome to The Rundown, a snapshot of news, views and intel from the fast-growth tech and investment scene.
We are also looking for feedback on The Rundown – what would you like to see more or less of? What do you find useful? Is 3pm on Friday the right time for a newsletter? Let us know at the address above.
Concept Ventures raises Europe’s biggest Pre-Seed fund
The London-based VC firm has raised $88m for its second fund and will invest in up to 50 companies in the UK and Europe. Concept’s portfolio includes AI voice tech unicorn ElevenLabs – currently valued at $6.6bn – which it backed at Pre-Seed. Sifted
Kevin Hart backs Simple Life’s $35m Series B
Hartbeat Ventures, founded by the actor and entrepreneur Kevin Hart, has led a $35m funding round into Simple Life, a London-based AI health coaching app. Other backers included the private credit firm Liquidity. TechCrunch
Cambridge animal woundcare spinout NoBACZ raises £4.8m
NoBACZ, which has developed “liquid bandage” technology for horses and livestock, received investment from The Yield Lab, ACF Investors, Adjuvo, the University of Cambridge, Parkwalk, the FSE Group and Cambridge Enterprise. Sky News
Creator Fund secures £30m to back university spinouts
The £30.3m first close announced by Creator Fund, a London-based Pre-Seed venture capital firm, will be used to support academics looking to turn their research into deep tech startups. UKTN
Nscale raises another $433m after oversubscribed Series B
The UK-based AI data centre startup has closed a $433 million investment less than a week after announcing a record $1.1bn Series B funding round. Backers included Nvidia, Nokia, Dell and asset management firm Blue Owl. Tech.EU
OpenAI surges past SpaceX after $500Bn valuation
OpenAI’s secondary share sale, which allowed current and former employees to sell about $6.6bn of their stock, confirms the business as the world’s most valuable startup, overtaking Elon Musk’s SpaceX. Times
Munich Airport forced to close after drone sighting
At least 17 flights were grounded, and a further 15 flights were rerouted following reports of drone sightings. It is not yet known where the drones originated from; the airport has since reopened. BBC
UK Government launches regional investment initiative
The government-run initiative aims to provide financial and entrepreneurial support for businesses outside of London. The programme is hoped to drive innovation and growth in regional tech clusters. UKTN
Pension funds underexposed to UK science
Lord Patrick Vallance warned that pension funds do not invest heavily enough in cutting-edge UK science. The move follows a report that highlighted DC pension schemes invest only 0.5% of their assets in venture capital or growth equity. FT
Omny appoints Thomas Fetten as CEO
The tech high flyer brings a wealth of experience from previous roles at Deutsche Telekom Security, Secure Link/Orange Cyber Defence, and IBM. The firm says the move is aimed at a new phase of growth, focusing increasingly on reach and reinforcing customer relationships. Source Security
Drone innovation is a threat to us all
Rapid development of “cheap, elusive and lethal” drone technology will be a lasting legacy of the Ukraine war, Serhiy Skoryk, commercial director of the Ukrainian electronic warfare company Kvertus, tells the FT’s John Thornhill. FT
UK “vulnerable” as cyber defences outpaced by criminals
A private sector solution must be created following a string of high-profile cyber attacks that highlight how the UK is seen as increasingly vulnerable by malicious actors around the world, writes cybersecurity expert Chris McGrath. LBC
No clarity yet for businesses on the budget
The government has taken a conciliatory tone with business leaders at the Labour Party Conference, Steve Rigby, Co-CEO of Rigby Group, tells the BBC’s Today Programme, but huge uncertainties remain around November’s Budget. LinkedIn
AI presents a “severe risk” for critical national infrastructure
There is an increasing risk to infrastructure operations from Denial of Service attacks or physical attacks on data centres, warns Mind Foundry director of research Nathan Korda – but there are clear mitigations too. New Civil Engineer
On AI valuations, this week’s Rundown brings you news of a $500bn price tag for ChatGPT maker OpenAI and further funding for data centre giant Nscale, just days after it raised $1.1bn in a record Series B round. These are headspinning numbers and the feeling of nausea is not helped with a little further investigation. OpenAI expects to burn through $115bn of cash in the next five years. That’s significantly more than the annual spend on research by the UK’s entire innovation ecosystem, including universities, startups, government labs and corporate R&D combined (around $86 billion in 2022).
It’s all been a bit bleak in the news this week, so we’ll finish on two positive – and totally unrelated – stories to take into the weekend. First, are you after a heartening tale of a tech company listing on the London Stock Exchange and exceeding expectations? Look no further than Cheshire-based Beauty Tech Group, which floated on Friday. A sign of things to come, we hope. And prepare to have your mind blown with the potential discovery of a new class of cosmic object called black hole stars.