Anyone with a passing interest in technology or venture capital cannot have missed the rapid increase in interest in AI over the past few months. We are overdue talking about it on the podcast, so we got an expert in James Pringle. He used AI as a founder and it now impacts how he invests so he is the ideal guest to discuss the topic.We start off by covering some of the basics, drawing out what AI is currently capable of. We discuss broadly how AI works, how it has developed over the past few years and what has changed to bring it to such prominence now.James explains how AI affects startups and what he is investing in. He discusses how it can supercharge employees, enabling them to move faster with less resources and how management needs to handle that. He talks about how this leads to an investment approach that focuses on applications rather the fundamental building blocks of AI.Finally, we discuss some of the risks around AI, especially around the speed of change and how that affects James as an investor as well as workers and the wider economy.PS Encouraged by James, we used AI to generate the title for the podcast - hope you like it!LinksPortfolio Ventures website - https://portfolio.ventures/James on LinkedIn - https://www.linkedin.com/in/thejamespringle/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested book The Personal MBA by Josh KaufmanBioJames PringlePortfolio VenturesJames Pringle is a VC investor at UK venture capital fund Portfolio Ventures. James also co-hosts Riding Unicorns, one of Europe's top venture podcasts. Prior to investing, James founded a VC-backed SaaS company.

When planning this episode with Kealan Doyle of Symvan Capital, he told a story about a venture capital conference where the compere asked who had been through a downturn before and nobody raised their hands. So we decided to discuss the last couple of venture capital cycles and how previous downturns compare with the current one. We also talk about some of the secular changes that have taken place over this period.We start by looking back to the .com bubble at the turn of the century. We examine some of its main features, including how much of the action took place in quoted markets and the limited effects on the economy.Next we look at the Great Recession. Although driven by the collapse in housing, particularly in the US, it affected every asset market. We go through the main features, including how venture capital saw a big downturn and, initially, a long slow recovery. We then briefly go through what happened in the past decade and how the current downturn came about. We talk about valuations, supply of capital and the unevenness of the current market. We also take our lives in our hands and speculate about how the VC market will develop over the next couple of years. LinksSymvan website - https://www.symvancapital.com/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested book and filmTurn Every Page: The Adventures of Robert Caro and Robert GottliebThe Path to Power: The Years of Lyndon Johnson (Volume 1) by Robert CaroBioKealan DoyleKealan is CEO and co-founder of Symvan Capital. He has worked with venture capital companies for 15 years, both in a corporate finance advisory capacity as well as a fund manager. He prefers to invest in a wide range of technology companies, but is also very interested in finding synergies within the Symvan portfolio of companies. Company interests include big data analytics, fintech, SaaS, 3D printing and network security. Before his involvement in venture capital investing, Kealan previously lead a structured equity products team at HSBC, and has worked at Deutsche Bank, Merrill Lynch and UBS. Together with Nicholas, he has since founded his own entrepreneurial businesses to focus on VC investing. Kealan holds degrees from the London School of Economics and the University of Toronto.

There have been two recent changes that will affect how ESG is applied in practice by fund managers, advisers and, most importantly, investors. Lee Coates of ESG Accord has been advising on ethical investment for three decades, runs a consultancy to help others implement ESG and and is on a relevant FCA committee. We had such a great discussion that we are giving it to you in two parts: this is the second. You don't need to listen to the previous episode first, but it will help.In this part, we start by discussing the new Sustainable Disclosure Regulations that are coming. While there is a lot of focus on the labelling, and it is important, Lee believes the disclosures will have a deeper impact. We discuss what they are and how that will affect what managers do.Greenwashing is obviously a concern. Lee talks about some of the ways this is happening, not all of which are malicious. We also discuss measurement, some of its challenges and how that will fit in with the new labelling.Finally, Lee looks at how things are evolving and how we might get to a world where we don't talk about ESG because its implicit in what everyone is doing.LinksESG Accord website - https://esgaccord.co.uk/Accord Initiative - https://www.accordinitiative.com/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested booksShadow of the Wind by Carlos Ruiz ZafonNomad Century: How to Survive the Climate Upheaval by Gaia VinceBioLee CoatesDirector, ESG Accord1989 launched IFA firm Ethical Investors, which dealt exclusively in ethical and responsible investment advice. Retired from firm in 20201998 launched independent ethical research company Ethical Screening 2010 launched Australia’s first animal-friendly Superannuation fund - Cruelty Free Super. In 2011 awarded an OBE for ‘services to ethical business and finance’. In October 2020 co-founded ESG Accord, supporting advice firms implement robust compliance procedures to meet client investment preferences and objectives, including ESG and SustainabilityLee is part of the FCA’s Disclosures and Labels Advisory Group

There have been two recent changes that will affect how ESG is applied in practice to fund managers, advisers and, most importantly, investors. Lee Coates of ESG Accord has been advising on ethical investment for three decades, runs a consultancy to help others implement ESG and and is on a relevant FCA committee. We had such a great discussion that we are giving it to you in two parts: this is the first.We start by discussing the background and how sustainable issues have evolved. Lee has strong views on where things are going and sets out an interesting perspective on what this means.He follows this by discussing Consumer Duty and how it will affect ESG. We initially focus on advisers and the changes they will have to make. Lee outlines the new requirements and how they fit into what advisors are already doing. He also talks about how the changes will be good for advisors' businesses and lead to more involved clients.Fund managers and investors do not get ignored though and we discuss them all further in the second part, which will come out next week.LinksESG Accord website - http://esgaccord.co.uk/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested booksShadow of the Wind by Carlos Ruiz ZafonNomad Century: How to Survive the Climate Upheaval by Gaia VinceBrian also mentioned:Lying for Money by Dan DaviesBiosLee CoatesDirector, ESG Accord1989 launched IFA firm Ethical Investors, which dealt exclusively in ethical and responsible investment advice. Retired from firm in 20201998 launched independent ethical research company Ethical Screening 2010 launched Australia’s first animal-friendly Superannuation fund - Cruelty Free Super. In 2011 awarded an OBE for ‘services to ethical business and finance’. In October 2020 co-founded ESG Accord, supporting advice firms implement robust compliance procedures to meet client investment preferences and objectives, including ESG and SustainabilityLee is part of the FCA’s Disclosures and Labels Advisory Group

Healthcare is a large industry and is a lot more than just drugs. We have two experts, Savvas Neophytou and Ben Carter of Deepbridge, to discuss the industry and how there is a lot of other life science areas that are attractive to venture capital investors.We talk a lot about devices. We discuss the challenges and benefits of investing in hardware, how they do diligence on technologies and negotiating the regulatory environment, especially how different areas of the health system can be attractive. We also talk about internationalisation, how markets and regulation interact and how the US doesn't always having the most attractive RoI.AI is flavour of the month and clearly will have a strong effect on healthcare. Savvas and Ben talk about where we are and how it will progress in the near future.LinksDeepbridge website - https://www.deepbridgecapital.com/Deepbridge contact - Andrew Aldridge andrew.aldridge@deepbridgecapital.comSubscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested booksTools of Titans by Tim FerrisGifted Greek by Moneteagle StearnsBiosDr. Savvas NeophytouPartner & Chief Investment OfficerSavvas is Chief Investment Officer at Deepbridge. Prior to joining Deepbridge, Savvas enjoyed a 15 year career in the City, working as an investment banker at JP Morgan, Bear Stearns, Shore Capital, Cantor Fitzgerald, and Panmure Gordon. Savvas was also CEO of telemedicine business Now Healthcare Group. As a highly acclaimed analyst, Savvas has won multiple awards, most recently in 2015 when Savvas was ranked 2nd overall in the prestigious Reuters Starmine survey, a position he also held in 2014. In the same year, Savvas was also runner-up in the CityAM Analyst of the Year awards. Savvas holds a PhD in psychopharmacology from Nottingham University and a BSc (Hons) degree in pharmacology from Manchester University.Ben CarterInvestment Director - Head Of Life SciencesBen is the Head of Life Sciences at Deepbridge. Prior to this role, Ben had been the managing director of Touchpoint Service and commercial director of Telmenow the healthcare equipment focussed e-commerce platform. Ben has also been chief commercial officer at Now Healthcare Group, a leading telemedicine provider with its Dr Now app.With a BA (Hons) in Management from the University of Manchester, Ben’s other corporate experience includes being commercial director at Possum, market leaders in the provision, installation and support of many types of electronic assistive technology.

Venture debt is a niche within the venture capital market that has been growing in importance. In this episode we get David Hayers, who is Head of Venture Debt at Hambro Perks, to explain what venture debt is and how it works.We start off by going through the basics. David talks about what types of companies venture debt is suitable for, what they look for when doing diligence and how the loans get repaid. We also dig into the typical terms that borrowers get and how those are seen in the market.After this, we move on to the wider market. We discuss the growth in venture debt and how other market participants are increasingly more accepting of it. We then look at demand in the current environment and how there are good and bad sides to recent market evolution. We also chat about other market participants, including events at Silicon Valley Bank and how David sees the market evolving in the near future. LinksHambro Perks website - https://www.hambroperks.com/David Hayers - LinkedIn https://www.linkedin.com/in/david-hayers-44280240/ or email david.hayers@hambroperks.comSubscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested booksAffluenza by Oliver JamesTuesdays with Morrie by Mitch AlbomBioDavid Hayers, Head of Venture Debt, Hambro PerksBefore joining Hambro Perks, David was Head of Growth Finance at Clydesdale Bank/Virgin Money for seven years, preceded by a further year as a Senior Investment Director. During David’s leadership, the team grew its lending to early stage, high growth software and advanced manufacturing businesses by nearly 600%, and generated record income in each of the four years between 2017 and 2020. David devised and implemented an expansionary strategy, which required securing the support of multiple stakeholders in the bank, undertaking a restructuring exercise and then recruiting a strong origination team to execute the plan. This plan has enabled the team to accelerate its origination and completion capabilities, such that the team has now lent in excess of £300m to more than 70 high growth companies. Prior to joining Growth Finance, David spent eight years in the London-based leverage and corporate finance unit at Clydesdale Bank providing structured senior debt of between £5m and £50m to listed and private equity backed companies.Before moving into banking, David spent three years in auditing and then eight years in corporate finance advisory helping management teams buy and sell businesses, working for several firms including BDO in London and Deloitte in Sydney. He also spent time in industry working for a private equity backed business as an in-house M&A specialist. David is a Fellow of the Institute of Chartered Accountants in England and Wales.

In today's episode we get more of a corporate finance perspective on venture capital, with two guests from PwC. Antonia Burridge co-founded the Raise team and John Baker is heavily involved in equity crowdfunding, so we get a perspective that extends right across the market.We start we some background on the Raise Team. Antonia discusses founding a new operation within a such large organisation, what they had to do to get it going and how they think about bringing value to fundraising for both companies and investors. John talks about how equity crowdfunding has developed over the past few years.We then discuss the current market in some detail. Antonia and John bring some interesting statistics to back up their observations as we talk about volumes and valuations. They bring insights into how founders and investors are adjusting to the new environment and what it takes to fundraise now. LinksPwC for startups and scaleups information - https://www.pwc.com/gx/en/services/entrepreneurial-private-business/small-business-solutions.htmlJohn's (non-PwC) Telegram group for ECF - https://t.me/joinchat/vTZKqkWSMmQwNDc0Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested booksFounders at Work by Jessica LivingstoneHow Women Rise by Sally Helgesen and Marshall GoldsmithBiosAntonia Burridge is one of the Co-Founders of PwC Raise | Ventures, with a focus on helping high growth early stage tech companies to raise their Series A and B funding rounds. Before setting up the team she worked in the M&A modelling and analytics team, supporting Private Equity houses and portfolio companies both during and post deal with their Business Planning, Cash Flow forecasting, Reporting and Analytics. She is also a chartered accountant and the Co-Founder of an award winning Femtech startup.John Baker has been working in deals and restructuring at PwC for nearly 20 years. In this time he has helped companies and management teams with a range of solutions to create value including performance improvement, cash control, managed services, stakeholder management and restructuring. He is currently speaking to a number of startups at the moment about cash focus, operations optimisation and back office efficiency, ESG and overall future funding and strategy. He is also an investor in a number of startups and regularly communicates with a group of 300+ early stage enthusiasts who share insights and intelligence.

While we usually focus on EIS and VCT in this podcast, there is a larger venture capital industry outside this area. Although its been mainly for institutional investors to date, Sprout is looking to change that. In this episode, founder and CEO, Jonny Blausten discusses the GP/LP market in general and how they are opening it up to retail investors.We start by talking about GP/LP funds. Jonny explains what they are, how they work and how they differ from the EIS funds that we are used to. We chat about how GP/LP funds can invest more widely, both by stage and internationally, and how the breadth of funds means there are plenty with strong track records.Jonny also discusses Sprout's fund selection process. It uses the "10 Ts": a list of criteria that funds should satisfy. We dig into some of the less obvious ones and Jonny explains why they are important, both to investors and to generate a robust selection process.LinksSprout - https://www.viasprout.com/Jonny's email: jonny@viasprout.comSubscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenBioJonny BlaustenFounder and CEO, SproutJonny Blausten is CEO & Co-Founder of Sprout - an investment platform for private investors looking to access top-tier venture capital funds. Having previously worked in strategy and M&A, Jonny founded Sprout to tackle the paucity of quality private market investment opportunities available to professionals, HNWIs and family offices.

Exits were described by an earlier guest as mythical beasts, but the reality is much more positive. Beauhurst used their database in report that they published in 2022, we we get their Head of Research, Henry Whorwood, to discuss it. While our discussion doesn't need the report in front of you, some people will find it helpful to download it using the link below.Henry starts off by talking about Beauhurt's data and what the report looks at. We discuss how they focus on high-growth companies, where they source data and how timely it is. We then move onto the trends that the report shows. We discuss the steady growth over the past decade and some anomalies in 202, particularly the surge in IPOs.We also dig into some of the details that the data shows. Henry gives insight into more recents trends, discusses the growth of overseas investment and some of the patterns in different types of companies LinksBeauhurst - https://www.beauhurst.com/Exits in the UK report - https://www.beauhurst.com/research/Exits-in-the-UKBeauhurst research (including latest (The Deal") - https://www.beauhurst.com/research/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books:The Power Law by Sebastian MallabyBioHenry WhorwoodHead of Research & Consultancy, BeauhurstHenry started and runs Beauhurst’s Research & Consultancy department which produces research on the UK’s startups and scaleups. He has worked on briefs for clients including the British Business Bank, HM Treasury, BEIS and Innovate UK. Henry is an expert on business finance, entrepreneurship and innovation and regularly gives presentations on market trends at events around the country. He studied Classics at the University of Oxford.

The events with Silicon Valley Bank have been dramatic and concerning for the venture capital industry in the US and UK. The EIS Navigator's host, Brian Moretta, has spent much of his career analysing financial companies, so is uniquely placed to give insights on banking and venture capital in this solo episode.Brian summarises what happened at Silicon Valley Bank. He outlines how the recent growth in deposits and a poor investment policy led to a bad outcome. He talks about the mistakes that management seem to have made. He then outlines what has happened to the US parent and the UK subsidiary.He then goes on to talk about the immediate consequences for startups in the UK and the effect on investors. He also highlights some interesting knock-on effects in the US. Finally, he looks at the longer term consequences, both what venture funded companies should do and what might happen in the banking market to service them.LinksWikipedia on Silicon Valley Bank - https://en.wikipedia.org/wiki/Silicon_Valley_BankSubscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenBioBrian MorettaHead of Tax Enhanced Services, Hardman & CoBrian Moretta is the Head of Tax-Enhanced Research at Hardman & Co, and also covers Financials stocks and Investment Funds.In addition to his role with Hardman & Co, Brian lectures on actuarial science and financial economics at Heriot Watt University, has been an examiner for the Faculty & Institute of Actuaries, and is on the Bankers without Borders Financial Modelling Reserve Corp.Brian has had a 20-year career in Financial Services, including more than a decade as a fund manager. He specialised in analysing Financial Services companies at SVM Asset Management, as well as managing two traded endowment funds, an equity fund and working on hedge funds.Brian joined Hardman & Co in February 2013. He holds a PhD in Applied Probability and a BSc in Actuarial Maths and Statistics from Heriot Watt University.