E556 | Kerry Baldwin (IQ Capital) & Chris Elphick (BVCA): The Path to Unlock European Pension Capital (EUVC Summit 2025)

Aug 23, 2025

Kerry Baldwin, co-founder of IQ Capital and chair of the BVCA's Pensions and Private Capital Expert Panel, joins Chris Elphick, head of venture capital at BVCA, to tackle a pressing question: How can Europe mobilize its pension capital for innovation? They discuss the £1 trillion potential by 2030 and the importance of aligning pension language with venture culture. Key insights include building relationships, using real-world case studies, and navigating regulatory changes to ensure pension funds actively invest in the venture ecosystem.

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INSIGHT

Europe Has Talent, Not Ideas

Europe has the scientific talent and founder base to scale tech, not the lack of ideas or teams.
The core gap is capital translation: moving large pension pools into venture requires structure and education.

ANECDOTE

Mansion House Moment

In July 2023 ten large UK pension funds pledged 5% into unlisted equities after Mansion House momentum.
That 5% equated to about £5 billion and presented a real chance to direct capital toward venture.

ADVICE

Speak Their Language First

Bridge the language gap by getting pensions and VCs to meet and learn each other's frameworks and constraints.
Build trust through repeated engagement rather than short pitches.

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At the EUVC Summit 2025, Kerry Baldwin (IQ Capital) and Chris Elphick led one of the most urgent conversations of the year:

Can Europe mobilize its pension capital to fund innovation—or will it stay stuck on the sidelines?

With £1 trillion expected to be funneled into innovation, growth, and venture by 2030, the opportunity is massive. But unlocking it will take more than speeches and slogans. It will take structures, translation, and a whole lot of education.

Chris opened by setting the context:

In July 2023, 10 of the UK’s largest pension funds agreed to invest 5% of assets into unlisted equities—representing £5 billion of fresh capital.
That capital is (unsurprisingly) biased toward private equity. But the real win?

Getting a meaningful slice of it into venture.

We now have the technical tools to do it:

The introduction of Long-Term Asset Funds (LTAFs)—with 27 launched to date—means the legal infrastructure is in place.
Regulatory shifts have opened the door. Now it’s time to walk through it.

“The pipes are built. Now we need to make the case.”

As Kerry pointed out, it’s not just about access—it’s about alignment.

“The pension world doesn’t speak venture. It speaks in valuations, risk ratings, board approvals, and actuarial models.”

To bridge the gap:

Ditch the pitch decks. Instead, build relationships.
Use case studies. Show, don’t just tell.
Speak their language. Get founders in the room. Educate through stories and real-world examples.
And yes, explain your fees—transparently.
→ “We charge fees because we hunt. We engage with professors. We run deep knowledge sessions. That’s where the value lives.”

Kerry closed with a critical reminder from someone who’s seen the cycles before—2001, 2009, and now:

“Just play nicely.”

→ That means fair terms.
→ Respecting early-stage angels.
→ Not forcing founder-unfriendly clauses when capital is tight.

Venture doesn’t work when trust is broken at the seed layer.

The prize is on the table. The pipes are laid. The policymakers are listening.

Now it’s up to us—as GPs, founders, LPs, and ecosystem builders—to:

Make venture legible
Build long-term trust
And design financial vehicles that serve founders, fuel returns, and unlock national innovation agendas

“Let’s stop waiting for the future to finance itself. Let’s build the financial architecture to fund it now.”

The Landscape: Shifting Regulations, Real PotentialThe Real Bottleneck? Language & UnderstandingA Word of Warning: Don’t Harm the EcosystemA Trillion-Pound Opportunity—If We Get This Right