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How AI is Rewriting the Rules + Real Talk on Defence Innovation
From London’s AI momentum to battlefield-ready startups—inside the strategies that matter most to founders and investors in 2025
Alex Leigh
June 02, 2025
Alex at the Moon display, Zeta building, Harwell Campus
Welcome 👋
Dear Reader,
Welcome to The Startup-VC Insider. The only newsletter trusted to bridge the gap between entrepreneurs and investors. This week, we’re diving into the fast-moving world of AI, exploring what venture capitalists actually want to see in AI startups, and sharing real-world lessons from defence innovation events. Whether you're a founder navigating the “valley of death” or an investor looking for the next big wave, there's something in here for you.
Let’s get into it.
🌟 Weekly Spotlight
This week's insight-packed seminar recap is threaded throughout the newsletter. Check out the VC Perspective below for the real meat on AI and venture.
💸 VC Perspective
AI’s Next Wave: How London is Shaping the Future of Venture Capital
Just over a week ago, we had the pleasure of attending the Spring Investment Seminar with Professor Jerome Engel (UC Berkeley) run by Future Planet Capital. It was an absolute masterclass on how AI is changing the startup game. From redefining risk and opportunity in portfolios to navigating the new rules of fundraising.
The key messages:
📍 AI isn't just the future, it's already dictating where global capital flows.
📍 And London is right in the thick of it.
Founders: Here’s What VCs Are Really Looking For in AI Startups
Straight from the seminar stage to your inbox, here are the takeaways that matter:
1. AI isn’t a feature, it’s the engine
VCs want to see how AI transforms your margins, costs, and delivery model.
2. Agent-led > App-led
Build processes that run themselves. Smart founders are skipping the UI fluff and embedding AI into workflows.
3. Nearly 60% of global VC deal value this year is AI/ML
This isn’t just a buzzword. It’s where the serious money is going.
4. Capital is cautious, not closed
Get sharp with your narrative: VCs want real-world outcomes, not just shiny pitch decks.
Big thanks to Jerry and my colleagues at Future Planet Capital for an insight-packed session.
🔗 Read the post to find out what investors really care about in 2025.
🚀 Entrepreneur Corner
How Well Do You Get On With Your VC?
Francis Neill from Silicon Microgravity and Alex Leigh
At Future Planet Capital's Partners Day 2025, I had the pleasure of joining Francis Neill from Silicon Microgravity Ltd on stage for a candid conversation about startup-VC dynamics.
Our partnership goes way back, and it shows. Silicon Microgravity has been backed by us for over two years through our defence portfolio, and even longer before that from another fund.
Long-term, trust-based VC relationships = strategic clarity + smoother fundraising + faster growth.
That’s how you win. Through real collaboration. More of this, please.
🌍 Common Ground / Industry Trends
Cool Under Pressure: Dual-Use Innovation That Saves Lives
Had a brilliant visit with the team at Cryogenx to see their CGx1 device in action. A cutting-edge solution to prevent and treat heatstroke.
🔥 Already being adopted by firefighters, defence forces, and big utilities to protect personnel under pressure.
🧠 As always, Professor Andrew Owens broke down the science with clarity and care.
This is dual-use innovation at its best. Backed proudly through our UK Innovation & Science Seed Fund (UKI2S).
🚒 One day, CGx1 might just save your life. Thanks for making this happen Matt Anderson!
🔗 Check out how cool this tech really is!
❓ Ask Alex
Q: How do entrepreneurs actually fund the valley of death at TRL 6?
A: There’s plenty of funding out there. VCs have dry powder and are itching to deploy, but their pipelines are thin.
The real problem: Not enough investor-ready startups.
💡 My advice:
Do your research (yes, even on ChatGPT).
Join an incubator or accelerator. Just be cautious about equity terms.
Sharpen your narrative and roadmap.
The money is there. Be ready to receive it.
Got a question for me? Reply to this email or DM me on LinkedIn or TikTok.
🗓️ Prior Events
Defence Innovation: Under the Moon and In the Room
What’s it really like getting money into defence?
We recently joined forces with Toby McCrindle and Nicola McConville of Mishcon de Reya LLP at their standout defence innovation events in London and Harwell Campus.
Key takeaways:
💰 There is money for defence
📉 But startups need investor readiness
🚀 Dual-use tech is a huge opportunity, but often misunderstood
🏛️ Procurement systems need reform
🔗 These conversations, held literally under a giant inflatable moon, made one thing crystal clear:
The future of defence innovation depends on collaboration, capital, and courage.
Massive thanks to Toby and Nicola for continuing to lead the charge.
📅 Upcoming Events
Monday 2nd June | 15:00 – 16:00 BST
Join me, Alex Leigh 🎙🎥 for a tactical session on how startups can scale and raise capital in the defence sector.
As part of the UK’s largest pre-seed fund (UKI2S), I lead the £18.5M MOD-backed Defence & Security Portfolio (D2S), backing high-growth dual-use and frontier tech ventures.
This session, part of the Janus Pathfinder Series, hosted at DASA, is built to help startups:
➊ Navigate both civilian and defence investment landscapes
➋ Align with investor expectations for dual-use tech
➌ Build a funding-ready strategy for scale
🔗 Registrations are closed but look out for the next one on LinkedIn
Big thanks to Hattie and the team for having me!
🧭 Closing Thoughts
Thanks for reading and supporting The Startup-VC Insider.
From AI investing to life-saving defence tech, it's clear: this ecosystem is evolving fast, and together, we’re riding the wave. Here’s to reaching the Tippy Top, together.
See you next week,
Alex
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