Deep-science startups, working in fields such as AI, quantum computing, and biotech, are crucial for future economic prosperity. However, these companies often struggle to secure early-stage investment due to the complexity of their technology and the time it takes to develop viable use cases. Angel investors, who typically invest at the Seed or Pre-Seed stages, may lack expertise in evaluating the opportunities and risks associated with science-led startups. This challenge prompted Doctors Jonathan Matlock and Ben Miles, both PhDs in science, to launch an £8 million fund to support early-stage deep-science businesses in collaboration with the U.K. government-owned British Business Investments.
The partnership with the Regional Angels Program aims to drive investment in science startups, with risks shared between angels and British Business Investments. Empirical Ventures, founded by Dr. Matlock and Dr. Miles, provides scientific expertise for due diligence to encourage non-expert investors to support cutting-edge science. The fund, supported by a combination of angel investors and British Business Investments, utilizes U.K. tax breaks to bring in £3 million in private investment, with an additional £5 million from the Regional Angels Fund. This public-private partnership operates under commercial disciplines while supporting the transition of British science from lab to marketplace.
Empirical Ventures’ investment strategy focuses on businesses that have conducted interdisciplinary research to create intellectual property that can be protected. While revenue generation is not mandatory, companies seeking investment should have moved beyond the research phase with a clear forward-looking plan. An example is EnsiliTech, a University of Bath spin-out developed to address the challenge of transporting biological materials like vaccines that require low temperatures. Their technology, based on silica nanoshells, eliminates the need for refrigeration and has applications in vaccine transportation. EnsiliTech has received support from the Science Angel Syndicate and Innovate UK, showcasing the supportive funding landscape for early-stage science businesses with expert investors and aligned company missions.
Other funds and angel syndicates are also committed to investing in deep science, including generalist and specialized organizations like Cambridge Angels and Angels in Medcity. The U.K. government’s emphasis on science encourages initiatives that increase investment in these sectors, with Empirical Ventures planning to make 10-15 investments in the next year. The goal is to support the growth of impactful companies that align commercial success with societal and environmental benefits. The involvement of expert investors and a clear company mission can facilitate the flow of capital to deep-science startups, emphasizing the importance of partnerships between scientists, entrepreneurs, and investors for the success of innovative technologies in the market.
