💰 The Big Money is Back: Dry Powder, Defence Innovation & VC Wisdom

The numbers don’t lie—there’s $216 billion in dry powder sitting in private equity and venture funds right now. The market may feel tough, but the cash is out there for those who know how to play the game.

This week’s edition is all about navigating the binary world of fundraising, understanding the shifting investor mindset, and avoiding classic startup mistakes.

If you’re a founder, investor, or operator—you’ll want to read this.

🔦 Weekly Spotlight

$216bn Dry Powder: Why the Good Times Are Back

Private markets are stacked with cash. At the BVCA Secondaries Conference 2025 last week, the headline stat was clear:

💰 $216bn in dry powder ready to deploy

LPs (the big institutions behind PE & VC firms) are even getting involved in direct transactions. That’s serious firepower.

But it’s a binary market—you’re either hot or you’re not. Rounds take longer to close. Winners take all.

Follow me for the best fundraising tips to make sure you’re on the right side of the equation.

Thanks again to Capital Dynamics and the BVCA for a great event.

🎥 Check out the post

🎬 VC Perspective

Should Founders Have Skin in the Game?

Conventional wisdom says founders should put their own money in. But Pete Hopton taught me why that’s not always true.

Founders already take huge risks—career, family, mental health, reputation. Adding personal financial risk can make them too cautious.

Entrepreneurship favours the bold. If founders can’t sleep at night, they can’t win.

🎥 Read my post and let us know your views

What’s Your Barrier to Entry?

In today’s world, tech and money are everywhere. Your moat isn’t your product—it’s your brand recognition, customer traction, and switching costs.

I could switch from ChatGPT to Gemini. But I won’t. Why? Too much embedded history, too much switching friction.

That’s your real defence.

🎥 Click here to share your views

Defence VC Is Now Impact Investing

Defence used to be on the VC blacklist. Now it’s a mission-critical impact sector.

Resilience isn’t someone else’s problem anymore. It’s yours.

Good news for our nine defence & security portfolio companies. Here’s who we’re backing:

🔗 UKI2S’ defence portfolio
🎥 LinkedIn article

Spring Statement 2025: A Call for Defence-Led Innovation

This year’s Spring Statement was clear: defence and innovation are intertwined.

📈 £2.2bn increase in defence spending next year
🔬 £400m ringfenced for innovation
🧠 10% of the MoD equipment budget allocated to novel tech

At UKI2S - Future Planet Capital, we’ve got £18.5m for defence & security startups delivering real-world capability—from cybersecurity and subsea autonomy to space antennas and quantum sensing.

This is a growth sector. Let’s build.

🎥 Full post here

💡 Entrepreneur Corner

The Classic VC-Backed Mistake: Over-Hiring

More employees ≠ more revenue. Over-hiring leads to:

⚠️ Less efficiency
⚠️ More bureaucracy
⚠️ Decision paralysis

Employee bloat kills startups faster than market downturns.

Take a leaf from McKinsey’s lean model or Amazon’s two-pizza rule.

We live in a world of automation—stay lean, stay alive.

🎥  Let me know your views

🌍 Common Ground / Industry Trends

Why a16z Is Backing TikTok

Andreessen Horowitz reportedly wants to help buy TikTok. After lessons learned from Clubhouse, a16z knows the future is video, not text or audio.

The corporate world is still sleeping on TikTok. But in the next five years, video will reshape everything.

🔗 Read more

Why Public Market Volatility Is Good for Private Markets

Public markets can’t always go up. The recent pullback is painful, but it’s actually good for PE & VC.

Lower public valuations mean:

✅ Better private dealflow
✅ More discipline in the market
✅ Dry powder levels rising

🔗 Full FT article
🎥 Comment on my post

💬 Ask Alex

Is fundraising really that hard right now?

The truth? No.

There’s $216bn in dry powder in private assets right now. There’s no shortage of capital—just a shortage of quality deals.

Fundraising is binary. You’re either oversubscribed or struggling.

Be the one who wins.

🎥 Linkedin video

🚀 Closing Thoughts

From massive dry powder and defence-led innovation to classic startup mistakes and public market pullbacks—this week’s message is clear:

The market has money. The question is whether you’re ready to win it.

Stay sharp. Stay informed. Play the game well.

Here’s to reaching the Tippy Top—together!

Best

Alex

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