The Prime Minister delivered a speech this week outlining the Government’s Industrial Strategy which aims to tackle the ‘Four Grand Challenges’ facing the world today, along with a target that UK R&D spend reaches 2.4% of GDP by 2027.
The Government’s ‘Four Grand Challenges’
- Artificial intelligence and the big data revolution is transforming business models and employment practices across all sectors of the economy – epecially in services, which are so important to our country;
- Rising global population and ever-increasing urbanisation, combined with new transport technologies, are driving profound changes in how we move people and goods around our cities and countries;
- Our society here in the UK, and in other developed countries around the world, is getting older – creating new demands and opportunities;
- The international determination to address climate change and deliver clean growth in the future is one of the facts of our time– and one of the greatest industrial opportunities of all time.
The Government sees the ‘Four Grand Challenges’ as crucial in shaping change across the world, as well as providing an enormous opportunity for the UK economy.
At Calculus Capital, we have long been advocates of the UK as a great place to start and grow a business and Theresa May’s speech further underlines the Government’s commitment to ensure that the UK remains at the forefront of entrepreneurship and innovation.
Theresa May praised the UK’s start up scene: “London is Europe’s leading tech start-up cluster, attracting more venture capital investment than any other city. But this success is not automatic. We are at the forefront of scientific invention because we embrace change and use regulation not to stifle but to stimulate an environment for creativity.”
We believe that EIS and VCT legislation provides a powerful boost to young, growing companies in this country, indeed, the UK now launches as many new businesses each year as the USA, despite the population of the US being nearly five times greater.
John Glencross, CEO, Calculus Capital: “The UK remains a strong market and this is an exciting time to be investing. In 20 years of being a growth investor, despite the current uncertainty surrounding Brexit, I have not seen the level of entrepreneurial activity in the UK as healthy as it is today.”
The last Autumn Statement reaffirmed the Government’s commitment to the EIS and VCT industry and, in particular, to ensuring that funding flows to entrepreneurial, growing businesses and this speech further underlines the role of well-crafted legislation in providing the right incentives to boost the economy through SMEs.
Theresa May said: “And it won’t just be public funding – our R&D target covers the combined power of government and business alike. That is what the Industrial Strategy is all about – not just the state spending money but using smart public investment to harness private funding. Not Government running enterprise, but a strategic state using its power and influence to create the right conditions to allow us to thrive in the long term.”
The Prime Minister delivered her speech at Jodrell Bank, Cheshire at the heart of the ‘Northern Powerhouse’ and was keen to highlight that the benefits of any future growth should be felt across the country, not just London and the South East.
As well as building sector diverse portfolios, Calculus Capital has always invested across all regions of the UK and we will continue to seek out great management teams running dynamic businesses from all corners of the country.
Robert Davis, Deputy CEO, Calculus Capital added: “Our diverse portfolio covers a range of sectors, all of which contribute to a thriving, modern economy. Our companies range from a software platform using Artificial Intelligence and ground-breaking cancer immunotherapies to advanced tyre monitoring systems and chemical-free weed control.”
We believe that our diverse portfolio of dynamic, growing businesses embody the spirit of EIS and VCT legislation and are entirely in line with the Government’s industrial strategy.
Examples from the Calculus Capital portfolio
- Axol Bioscience provides human cell culture systems for medical research, disease modelling and drug development.
- Blu Wireless is at the forefront of the transition to 5G wireless internet, developing semiconductor designs for the next generation of high speed wireless data transfer. Blu Wireless was recently named ‘Key Innovators’ by European Commission.
- Avvio provides hosted booking engine software to both hotels and hospitality businesses. In 2017, Avvio released “Allora”, the world’s first AI-powered hotel booking engine.
John Glencross, CEO, Calculus Capital: “Of course, cutting edge technology and innovation isn’t the be all and end all, growth investing should be about making a difference and at Benito’s Hat is as simple as making great burritos at a good price for busy people.”
For businesses seeking funding, contact investmentteam@cc23.codewithfeeling.com
Both the Calculus EIS and the Calculus VCT are open for subscription
Next close date for the EIS fund is 29 June
VCT deadline for the 18/19 tax year is 31 July
Contact the Investor Relations team for more information.
Email: info@cc23.codewithfeeling.com
Call: 020 7493 4940