The Rise of Deep Tech Venture Capital in Bristol: SCVC’s Founder-led Approach

In the rapidly evolving world of venture capital, it’s not uncommon to find former founders-turned-investors leading the way. However, Europe has been lacking in venture capitalists with a background as founders or “operators.” This trend is changing with the emergence of Bristol, England as a hub for deep tech startups and the birth of SCVC, a venture capital fund with a founder-led approach.

Harry Destecroix: From Founding Ziylo to Creating a Technological Ecosystem

Harry Destecroix, a co-founder of biotech startup Ziylo, made waves in the scientific community with the development of a synthetic molecule that binds to blood glucose. In 2017, he launched Unit DX, an incubator in collaboration with the University of Bristol, to nurture and commercialize deep tech companies like Ziylo. Three years later, Ziylo was acquired by Danish company Novo Nordisk in a deal worth more than $800 million.

Capitalizing on his success, Destecroix embarked on a new venture in Bristol, launching a technological ecosystem called “Science Creates.” This ecosystem consists of UnitX and Unit DY wet labs, as well as a £15 million investment fund formed in partnership with the University of Bristol and a network of strategic partners. With Science Creates, Destecroix aims to support the growth of deep tech and science-based startups in Bristol.

Introducing SCVC: Bristol’s $100 Million Venture Capital Fund

Building on the foundation of Science Creates, Harry Destecroix has taken his journey further with the release of SCVC. This venture capital fund aims to reach $100 million and focuses on investing in deep technology in the fields of health and climate.

SCVC’s first seed fund, worth $17 million, backed 12 promising companies in various sectors, including therapies, diagnostics, quantum sensors, and semiconductors. Notable investments include Delta g, a quantum gravity sensors startup, Isomab, a biotechnology company, and Scarlet Therapeutics, specializing in red blood cell-based therapy.

The new fund will continue to prioritize early-stage startups, providing initial checks ranging from $500,000 to $3 million. Additionally, SCVC will offer additional financing for Series A entries, with investments of up to $7 million.

A Founder-led Approach: Equipping Science-based Startups for Success

Harry Destecroix believes that the most innovative and groundbreaking startups often emerge from scientific research, which may seem unconventional to those running conventional businesses. By specializing in these science-based startups, SCVC aims to provide the unique and specific support necessary for their success.

Destecroix emphasizes the need to equip these startups with the right skills and resources. SCVC’s founder-led approach ensures that founders have the experience and expertise to guide their portfolio companies effectively. This approach sets SCVC apart from traditional venture capital firms and resonates with founders who have had firsthand experience in building and scaling companies.

The Impact of Brexit and the UK’s Role in Deep Tech

Before the recent news of the UK rejoining the EU’s Horizon science funding program, Harry Destecroix expressed his concerns about Brexit and its impact on funding for deep tech ventures. He believes that being part of larger trading blocs facilitates collaboration and addresses significant issues such as energy and artificial intelligence.

However, Destecroix supports the UK’s agile approach to AI regulation, contrasting it with what he perceives as over-regulation in the EU. He highlights the UK’s attractiveness to startups from other EU countries, who may consider relocating due to the favorable AI landscape and opportunities for application in various sectors, including government, life sciences, and healthcare.

Bristol: A Thriving Tech Scene and Home to SCVC

Bristol’s burgeoning tech scene continues to impress with its lineup of innovative companies. Alongside SCVC, the city boasts prominent players like Ultrahaptics, Open Bionics, Graphcore, and Immersive Labs. The establishment of SCVC adds another layer of support and investment for deep tech startups in Bristol, solidifying the city’s reputation as a hub for technological innovation.

Additional Piece: Building a Sustainable Future with Deep Tech

The rise of deep tech venture capital, exemplified by SCVC and similar funds, represents a pivotal shift towards a more sustainable future. Deep tech startups leverage cutting-edge technology to tackle pressing global challenges, ranging from healthcare and climate change to energy and food security.

By focusing on science-based startups, SCVC and other founder-led venture capital funds play a crucial role in nurturing and accelerating breakthrough innovations. These startups often require substantial capital and specialized expertise, making them less accessible to conventional investors. However, founder-led funds understand the unique needs and challenges of such ventures, effectively bridging the gap and fueling their growth.

The impact of deep tech cannot be underestimated. Quantum sensors revolutionize precision measurements, enabling advancements in fields like medicine, agriculture, and environmental monitoring. Biotechnological breakthroughs have the potential to revolutionize healthcare, leading to personalized treatments and advancements in gene therapy. Semiconductor innovations drive progress in areas such as AI and telecommunications, shaping the digital landscape of the future.

SCVC’s dedication to funding deep technology initiatives in health and climate demonstrates a forward-thinking approach to addressing pressing global issues. By investing in these startups, SCVC not only aims to generate financial returns but also seeks to create a positive impact on society and the environment.

The success stories of deep tech startups further highlight the immense potential of this sector. Companies like Ziylo, which began as a university spin-off, can achieve remarkable exits and drive significant scientific advancements. By supporting founders with a deep understanding of their domain and a clear vision for the future, venture capital funds like SCVC pave the way for breakthrough technologies and sustainable solutions.

Summary:

Harry Destecroix, co-founder of biotech startup Ziylo, has made a remarkable impact on Bristol’s tech scene. From founding Ziylo to launching Unit DX and Science Creates, Destecroix has set the stage for scientific breakthroughs and deep tech innovation in Bristol. The launch of SCVC, a founder-led venture capital fund focused on deep technology in health and climate, further solidifies Bristol’s position as a hub for technological advancement. By investing in science-based startups, SCVC aims to support the growth of groundbreaking technologies while driving positive change. With a unique approach and commitment to building a sustainable future, SCVC is leading the way in deep tech venture capital in Bristol and beyond.

Europe has very few venture capitalists created by former founders or “operators,” as the industry often likes to call them. Yes, Atomico has Niklas Zennström. First Minute Capital has Brent Hoberman. More recently, plural was created by Taavet Hinrikus (ex-Wise), Sten Tamkivi (ex-Teleport) and Ian Hogarth (ex-Songkick). But that list of “operators turned venture capital” is quickly depleting across the European tech scene.
But now that story changes to Bristol, England.

Harry Destecroix co-founded biotech startup Ziylo while studying his PhD at the University of Bristol. Ziylo, a spin-off company from the university, developed a synthetic molecule that binds to blood glucose.

But to do this he decided he wanted to be surrounded by like-minded ‘SciTech’ companies. Thus, in 2017 he launched Unit DX, an incubator, in collaboration with the University of Bristol, to commercialize companies like his.

Three years later, in 2020, Destecroix sold Ziylo to Danish company Novo Nordisk, which had realized it could use Ziylo’s molecule to unlock “smart” insulin, in a deal. My dear worth more than 800 million dollars.

Destecroix used his exit to repeat the exercise of creating deep tech and science-based startups, again, in Bristol. He launched ‘technological ecosystem’ “Science creates” consisting of the UnitX and Unit DY wet labs, and a £15 million investment fund with the University and a network of strategic partners.

Fast forward to today, and Destecroix has taken that journey further with the release of SCVC, which now aims to be a $100 million venture capital fund and claims to have reached its first close (for an undisclosed amount). The Bristol-based company will invest in deep technology in health and climate.

During a call, Destecroix told me: “It’s been two years and I feel like the more I invest, the more addicted I’ve become. It has been a wonderful journey. And I also think there aren’t enough founders in the UK who ended up breaking into a company. “That’s why we want to build a venture fund that is truly founder-led.”

SCVC’s first $17 million seed fund (before the shift to full-fledged venture capital) backed 12 companies ranging from therapies and diagnostics to quantum sensors and semiconductors.

Recent investments include ‘Delta g’ (quantum gravity sensors) and Isomab (biotechnology) and Scarlet Therapeutics (red blood cell-based therapy).

The new fund will invest in early and early stages with initial checks of between $500,000 and $3 million. It will also provide additional financing for Serie A entries of up to $7 million.

The fund’s first investment is VyperCore, a RISC-V startup developing modified processors.
Destecroix is ​​joined by SCVC co-founder Jon Craton, an Angle investor and former co-founder of Zynstra, which was acquired by NCR Corporation.

Bristol-based founder John Williams, co-founder of Kudan (artificial perception technologies) joins as the firm’s first venture partner.

Destecroix explained: “What we do is specialize in those 1% of startups that come from science, which seem crazy to the outside world. What do you mean you need to raise millions of pounds? What do you mean you don’t even know what your product is like? This. This type of startup is crazy for most people who run conventional businesses. So, of course, you need to equip them with a unique and specific skill set.”

Before the recent news that the UK would rejoin the EU’s Horizon science funding programme, Destecroix criticized Brexit.

“I definitely think it hasn’t helped,” he said. “It’s made it more difficult to fund a fund in terms of European investors… I feel like we need to be part of these larger trading blocs to come together and really address some of these big issues like energy and artificial intelligence.”

However, he backed the UK’s approach to AI: “I think the EU is over-regulating it and I think the UK is taking a much more agile approach. I’ve heard of startups from France thinking about moving to the UK. “We need to think about AI being applied to everything: government, life sciences, healthcare.”

The SCVC news will be a boost to Bristol’s burgeoning tech scene, which already boasts companies such as Ultrahaptics, Open Bionics, Graphcore and Immersive Labs.