The case for betting pensions on start-ups
While cautious funds sit on £2.4 trillion, pressure is mounting to find ways to funnel some of that cash to entrepreneurs
Nicole Eagan had every right to be excited as she announced a new funding round for her cyber-security venture, Darktrace, two years ago. The $75m investment marked a “critical milestone” for the start-up, she said, and would allow it to continue along a path of “unprecedented growth”.
Darktrace, which uses artificial intelligence to spot and respond to cyber- attacks, is among Britain’s most exciting tech prospects. However, like so many others, it has sourced much of its funding from overseas. The $75m came from Insight Venture Partners and KKR — both based in New York — and Summit Partners, a Boston venture capital firm.
For many entrepreneurs, taking cash from foreign investors is not a strategic decision — it happens simply because the funds they need…
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