Beyond the Golden Triangle: Exploring UK Innovation with Future Planet Capital

Beyond the Golden Triangle: Exploring UK Innovation with Future Planet Capital

Interviewed by on June 18th, 2024

“We all have a finite time to work with, right?” Sakura Holloway remarked to Nicolas Sauvage of TDK Ventures. “We always say that our team is too small to support the number of people we would like to support. We prioritize companies we are actively thinking about investing in and have invested in. But it doesn’t take much time to say, ‘You’re not right for us, but we know three or four people who've been in a similar situation to you.’”

Sakura Holloway's entrepreneur-first approach has greatly benefited Future Planet Capital, an impact-led venture capital firm that supports innovative companies from the UK's top universities and research ecosystem. As a UK seed-stage investor for Future Planet Capital, she focuses on the national seed fund, which aims to grow UK innovation for global success. 

Holloway identifies promising seed-stage companies with experienced management teams in the UK’s Golden Triangle (Oxford, Cambridge, and London) and beyond. In addition to providing funding, she supports portfolio companies by hosting leadership programs, fostering communities among founders, and organizing networking events with limited partners (LPs).

IP & BD Background

Before becoming an investor, Holloway earned a degree in immunology and a master's in intellectual property. She started her career in commercial research in the early 2000s before transitioning to an IP attorney role. As a patent attorney, she structured IP portfolios, protected company innovations, performed competitive landscaping, and worked on commercial deals, including due diligence for in- and out-licensing and M&A activities.

Holloway recalls needing to bridge the gap with scientists. “I distinctly remember speaking to a world-renowned cancer researcher about her research. I was in business development, trying to explore licensing or company formation opportunities. She essentially told me, ‘I don’t have time for BD; this is a waste of time.’” From that, she learned the importance of having curiosity about the founders' work and expressing your ability to understand them. 

“They need to know the person they’re talking to on the other side of the table, who's an investor, who's ultimately going to be on return and making money, is equally passionate about the technologies that they're investing in,” explains Holloway. Investors are not experts, but they at least need to understand the basics and show they are curious about the entrepreneur's technology and space. Bridging the gap requires the entrepreneur to also invest time, and this can be overcome through the proof of further value. 

Investing Early

For the national seed fund managed by Holloway, providing future value isn't always intuitive. As early-stage investors, they focus on investing in a founder and intellectual property (IP), rather than in a scaled company. Future Planet, on the other hand, has A and B-stage funds, but Holloway often finds herself declining requests for further funding because these later stages are beyond her purview as a seed-stage investor. Therefore, Holloway must find alternative ways to add value.

Leveraging her background in IP, Holloway assesses the strength of a company's IP position within its ecosystem and identifies any potential future legal red flags. She emphasizes that "companies need to be thinking about freedom to operate and understanding their competitive positioning, any third-party IP they might be encroaching on, what they need to be aware of, and what they need to navigate."

At the early stages, Holloway observes how companies evolve and the narratives they use to sell themselves. She listens to their pitches and provides valuable feedback, helping to shape their stories and strategies. 

Syndicate Builders

Since Holloway's involvement doesn't extend beyond the seed stage, ensuring entrepreneurial success through a strong foundation is crucial. This makes her and her team's assistance in syndicate formation, due diligence, and networking indispensable.

As one of the first investors, entrepreneurs tap them for additional investors who can bring something to the table using their network. They do introduce the company to their network, but they do not make pitches to other investors. The “warm introduction certainly helps. The calls happen, the meetings happen, and things can move pretty quickly” after that if there is real synergy, according to Holloway.

Future Planet and Holloway have proven to be reliable pipelines of quality companies for later-stage investors, helping them build their networks. Other investors even use some of their due diligence as a jumping-off point for their own, helping them build further trust with the ecosystem.

Tracking Success Stories

Future Planet Capital has notable successes in supporting UK innovation, not just for other investors but overall fostering UK innovation into globally successful companies:

• Job Creation: The firm has contributed to creating approximately 1,100 jobs across the UK through its investments.
• Attracting Co-investment: Future Planet’s portfolio companies have raised approximately £800 million in subsequent funding rounds, demonstrating the firm’s ability to identify promising companies and foster confidence among other investors.
• Building a Thriving Community: Future Planet organizes events like leadership training programs and partner days, connecting founders, management teams, investors, and partners to share best practices and foster valuable relationships.

Tracking key metrics allows Future Planet Capital to demonstrate to its stakeholders its commitment to generating financial returns and making a tangible impact on the UK economy and the global innovation landscape.

Looking Ahead

Future Planet Capital is actively seeking new technologies, innovations, and founders to invest in, while also looking for experienced management teams to create new companies in the UK. The firm’s strategy emphasizes fostering translational research, ensuring that promising UK-developed technologies are further developed and commercialized within the country.

The firm aims to maximize the potential of UK-based companies, encouraging their growth within the UK before expanding globally. This approach underscores Future Planet’s commitment to strengthening the UK as a global innovation hub. While supporting global expansion when necessary, the current strategy prioritizes domestic growth to nurture a thriving UK innovation ecosystem.

“We have many new investments to make. We are hunting for new technologies, new innovations, new founders, but also experienced management teams to create new companies in the UK. It’s exciting to see opportunities for new spin-outs and companies. We would love to see more later-stage investment in the UK, keeping translational efforts and company growth within the country. Let’s maximize our potential here and grow our teams within the UK community.”