Deepbridge Magazine - Spring 2024

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more, see below.

FCA Prescribed Risk Warning

Risk summary for non-readily realisable securities which are shares.

Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

1. You could lose all the money you invest

• If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.

2. You are unlikely to be protected if something goes wrong

• Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here:

https://www.fscs.org.uk/check/investment-protection-checker/

• Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here:

https://www.financial-ombudsman.org.uk/consumers

3. You won’t get your money back quickly

• Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.

• The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.

• If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.

4. Don’t put all your eggs in one basket

• Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.

• A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Learn more: https://www.fca.org.uk/investsmart/5-questions-ask-you-invest

5. The value of your investment can be reduced

• The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.

• These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

• If you are interested in learning more about how to protect yourself, visit the FCA’s website here: https://www.fca.org.uk/investsmart

General enquiries

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+44 (0) 1244 746000

info@deepbridgecapital.com

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VISIT WEBSITE

WELCOME TO THIS LATEST EDITION OF THE DEEPBRIDGE MAGAZINE

With 2024 fully underway, it is good to look back at the previous year and consider one’s expectations for the coming year and beyond.

Last year represented a period of significant progress across our investment portfolios, with companies continuing to disrupt their respective target markets, considerable commercial growth and numerous companies actively working towards exit opportunities. Challenging macro conditions dictated that there was limited venture capital available for companies, so we witnessed a slow-down in cofunding compared to previous year, but we are now starting to see signs of recovery.

In November, members of our investment team attended Web Summit, Europe’s largest technology and innovation conference. Hearing from innovators, mentors, blue-chip CEOs, private equity, and entrepreneurs from across the globe was not only inspiring for the team but also reinforced our commitment to the sectors in which we invest. Artificial intelligence (AI) was naturally an area of huge interest, as was cyber security, medical diagnostics, and therapeutics; all areas in which the Deepbridge portfolios specialise.

The UK Government’s decision, via November’s Autumn Statement, to extend the Enterprise Investment Scheme until 2035 was, of course, great news for investors and entrepreneurs alike, encouraging critical funding to support the growth-focused innovators that need it.

This year has already started positively and we look forward to updating clients on exciting news as and when we are able to.

IMPORTANT INFORMATION AND RISKS

Deepbridge investments are both illiquid and high risk, not suitable for all investors and investors should not consider investing unless they can afford the full loss of their investment.

This document is a financial promotion for the purposes of Section 21 of the Financial Services and Markets Act 2000. The content of the document has been approved by Deepbridge Capital LLP.

This document does not constitute, and may not be construed as, an offer or invitation to invest or make commitments pursuant to Section 21 of the Financial Services and Markets Act 2000. The information contained herein is subject to updating, amending and verification therefore you should not rely upon it for any purpose.

Any investment in a Deepbridge proposition will be made solely on the basis of the respective product literature and customer agreements. Please be aware that past performance is not necessarily a guide to future performance and may not necessarily be repeated. The value of investments may go down as well as up and you could lose all or any of the amounts you originally invested.

This year we are looking forward to more positive progress from portfolio companies, driving investor exits, launching new Deepbridge products and continuing our constant evolution of customer service.

On a wider scale, it is reassuring to see inflationary pressures easing, which will hopefully be followed by improving consumer and investor confidence. Of course, it will be interesting to see how the UK and USA elections potentially impact economic confidence and any geopolitical impact from the ongoing situation in Ukraine and the Middle East. But in general, we look forward to the rest of 2024 with optimism and with the confidence that the UK remains one of the best places in the world to start and scale a business.

With great academia, maturing ecosystems and unique funding opportunities, with EIS at its heart, there has arguably never been a better time to be investing in the UK’s technology and life sciences sectors. From turbulent economic times often comes great innovation, and I firmly expect 2024 to be a great year for innovators and those able to support them with the growth capital they need.

Thank you for your continued support.

Ian Warwick Managing Partner, Deepbridge

This document is provided for information purposes only and does not constitute investment, legal, tax or other advice. In particular, any tax reliefs referred to in this document are for information purposes only and based on our interpretation of current law. The application and value of potential tax reliefs depends upon the individual circumstances of each person, may be subject to change in the future as a result of subsequent changes in law and therefore cannot be guaranteed. Prospective investors should take appropriate professional advice (including legal, financial and tax advice) before making any investment decision, no reliance should be placed on any information contained in this document, whether for investment purposes or otherwise and any decisions or actions taken based on such information is the responsibility of the person taking that action or decision.

Deepbridge Capital LLP is registered in England & Wales, Partnership No. OC356449. Registered Office: Deepbridge House, Honeycomb East, Chester Business Park, Chester CH4 9QN, authorised and regulated by the Financial Conduct Authority (FRN: 563366).

Ian Warwick Managing Partner, Deepbridge

5 What has Venture Capital ever done for us?

A very basic definition of venture capital is the provision of financing to seed and early stage companies, typically those companies that are unable to attract more traditional development funding due to their pre-revenue or pre-profit stage of development.

6 Visit Italy

In this section we share our team’s top tips for visiting Italy.

10

Deepbridge News Update

Keep up to date with what is going on at Deepbridge, our investee companies and other exciting news.

12

Deepbridge Discovery

Join the Deepbridge Capital team each week as they discuss all things Deepbridge, speak with various investment experts within the company and discover more about the founders and CEOs’ running the portfolio companies Deepbridge invests in.

13

Meet the Company

Simon Tutton, Regional Director - South West England & South Wales at Deepbridge Capital, interviews Martyn Noble, Co-Founder, Co-Owner, Chairman & CEO at Hurricane Modular Commerce.

15

Northcote

Deepbridge Capital Headlines NORTHCOTE OBSESSION'24, Raising £110K for Charity.

18

Artificial Intelligence the investment position

Oliver Wheatley, Investment Director within the Technology Growth investment team assesses this much discussed phenomenon through an investment lens.

19

Meet Steve Taylor

Having joined Deepbridge in 2021, my role is Technical Manager within the Deepbridge Technology investment team and as ESG Lead.

20

Meet the Company

Andrew Aldridge, Partner & Chief Marketing Officer at Deepbridge Capital interviews Mark Roger, CEO at Ibis Vision, which is part of Deepbridge Capital’s Life Sciences EIS portfolio.

Image by: Scott Rhodes@bacononthebeech

IT ACTUALLY IS ROCKET SCIENCE.

Deepbridge’s

Deepbridge’s

WHAT HAS VENTURE CAPITAL EVER DONE FOR US?

A very basic definition of venture capital is the provision of financing to seed and early stage companies, typically those companies that are unable to attract more traditional development funding due to their pre-revenue or pre-profit stage of development.

Securing venture capital is fundamentally different from issuing debt or taking a loan. Lenders hold a legal right to interest on a loan and repayment of the capital, irrespective of the success or otherwise of the business. In contrast, venture capital involves an exchange of funding in return for an equity stake in the business. The return of the venture capitalist, as a shareholder, depends on the growth and profitability of the business, and this return is typically realised when the venture capitalist exits by selling its shareholdings when the business is sold to another owner or floated on a stock exchange.

Venture capital investing involves multiple stages of financing that roughly correspond to the successive stages of a company’s development:

• Pre-seed funding: this is the earliest round of financing needed to deliver the proof of a new idea or concept;

• Early Stage: includes seed and Series A funding for companies to identify product-market fit;

• Growth Capital: once an investee has identified its product-market fit, it will then use growth capital to scale its business operations.

Venture capital investors may also choose to invest through bridge financing, typically when a start-up company requires financing during the gap between full fundraising rounds. The objective here is to raise a smaller amount of money so as to ‘bridge’ the gap when current funds held are expected to be exhausted before a future scheduled financing, intended to meet short-term working capital needs in the absence of sufficient revenue or grant funding.

Venture capital has played a significant role during the 20th and 21st centuries, in the growth and development of countless innovative companies, enabling

them to scale rapidly and bring groundbreaking products and services to market. Examples of those innovative industries that have materially benefited from venture capital in their founding include personal computing, e-commerce, access to the internet, biotechnology, and renewable energy. Examples of large innovative firms founded with venture capital include Meta (Facebook), Tesla, Apple, Alphabet (Google), Microsoft, and Uber.

Biotechnology is a broad and diverse field, from developing new drugs and therapies to creating novel diagnostic tools and devices. In the past two decades, this industry has witnessed significant growth and innovation, with start-ups and established companies both focused on developing new approaches to treating and diagnosing disease. But, as with any industry, innovation requires funding, and this is where venture capital has provided much-needed development financing. Traditional sources of funding, such as banks, are typically unwilling to invest in biotech start-ups due to the high investment risk and long timelines inherent in the industry. Venture capital firms use a financing model that allows for high-risk, long-term investments in innovative companies, with the potential for substantial returns.

On a more fundamental level, venture capital is an important engine of innovation, economic growth and societal progress, enabling entrepreneurial founders to develop new technologies and business models that address newly emerged user needs as well as address existing user needs in a new way. Venture capital does not consist solely of finance, it also involves the delivery of additional business and domain expertise on the part of the venture capital investors, as well as access to collaboration with other more-established technology innovators.

Before the Second World War, venture capital was the exclusive preserve of the rich and wealthy, such as the Vanderbilts, Rockefellers and J.P. Morgan. As the first venture capital firm to raise capital from sources other than wealthy families, American Research and Development Corporation was established in 1946 to encourage private-sector investment in business ventures run by soldiers returning from the Second World War. Since then, venture capital firms have proliferated across the Western economies, often underpinned by Government economic policy such as the UK Government’s Enterprise Investment Scheme.

As expected in an increasingly connected world, new and evolving technologies continue to unlock new business creation opportunities. Over the last two decades, the invention and subsequent adoption of the smartphone, coupled with the adoption of e-commerce, has allowed numerous companies to prosper at an unforeseen pace, such as online retail (Amazon), location-based transport (Uber), digital marketing and advertising (Meta, Google), mobile payments (Apple Pay, PayPal), mobile gaming (Zynga), and the Internet of Things (Nest, Ring) as notable examples.

Venture capital can also provide vital financing to new firms that focus on developing technological solutions to attend to emerging existential threats, such as the impact of climate change on human supply-chain resilience, by investing in firms that are developing solutions that improve human supply chains (from food to medicine) whilst easing pressure on the world’s irreplaceable ecosystem amidst changing climatic conditions.

Kieran O’Gorman Technical Partner, Deepbridge

Visit

In this section we share our team’s top tips for visiting a city or region. In this edition we thought we would look at Italy, famed for its cultural treasures such as the Colosseum and Michelangelo’s art, as well as its delectable cuisine, including iconic dishes like pasta and pizza.

DAYS OUT...

Fuchsia Curry, Head of Private Client Marketing at Deepbridge Capital, fervently recommends including a visit to Campania, celebrated for its iconic coastline, rugged hills and lemons. Within Campania, Fuchsia encourages a visit to Naples, to experience the vibrant multiculturalism and its historic neighbours Pompeii and Herculaneum. Under the shadows of Mount Vesuvius, the coastline of the Gulf or Naples is fertile and lush, with the iconic town of Sorrento at its southern end. Following the twists and turns of the coastal roads leads past the island of Capri to the stunning Amalfi Coast, where the lemons and seafood make for a culinary treat.

As expected, being a UNESCO World Heritage Site, the Amalfi Coast boasts stunning scenery, beautiful villages and intriguing walks. Exploring the towns of Amalfi and Positano can be done by road, but in reality there’s nothing quite like arriving by boat. From these tourist honeypots, Fuchsia encourages a walk from Amalfi to Ravello, known for its gardens and classical music festivals. Here one can explore Villa Rufolo and Villa Cimbrone, both offering stunning gardens and panoramic views. Back in Amalfi Town, visitors can escape the summer heat within the beauty of the Cathedral of St. Andrew and the Cloister of Paradise.

Nestled against the backdrop of the Italian Alps, Lake Como emerges as a gem of tranquillity and natural beauty. Its deep

blue waters are cradled by lush hillsides adorned with elegant villas and charming villages.

Oshan Bennett, Senior Marketing Executive at Deepbridge Capital, recommends a visit to Lake Como for its unparalleled picturesque landscapes. Oshan praises the lake’s timeless beauty, where one can enjoy leisurely boat rides to explore enchanting towns like Bellagio and Varenna. The surrounding mountains offer a captivating panorama, creating an idyllic escape that seamlessly combines relaxation and exploration.

The culinary experience around Lake Como represents a fusion of local ingredients and traditional recipes, capturing the essence of Northern Italian cuisine.

Oshan recommends savouring the region’s renowned saffron-infused risotto and freshwater fish, like perch and lavarello, for an authentic taste of the region. Against the backdrop of stunning landscapes, the restaurants around Lake Como create a memorable and irresistibly charming dining experience.

Lake Como, Lombardy

Andrew Aldridge, Chief Marketing Officer at Deepbridge Capital, highly recommends witnessing the enchanting beauty of Venice. His top suggestions include navigating the iconic canals bridges and alleyways, exploring historic landmarks such as St. Mark’s Basilica and the Doge’s Palace, and indulging in authentic Venetian cuisine, and Valpolicella, at quaint trattorias.

Andrew, also recommends visiting the island of Murano to admire the craft, artistry and beauty of Murano glass in the local workshops, adding an extra layer of cultural richness to the experience. The vibrant atmosphere makes a visit to Venice a captivating blend of history, art, culinary delights, and exquisite craftsmanship.

Olivia Drinnan, Strategic Partnerships Manager at Deepbridge Capital, highly recommends a visit to Rome for its unparalleled historical and cultural richness. Her suggested itinerary includes exploring the iconic Colosseum, delving into the Roman Forum’s ancient ruins, and marvelling at the intricate Trevi Fountain.

Spend a day exploring Vatican City, home to St. Peter’s Basilica and the Vatican Museums. Marvel at Michelangelo’s frescoes in the Sistine Chapel and enjoy panoramic views from the top of St. Peter’s Dome. Nestled within the heart of Rome, Vatican City is the world’s smallest independent state, serving as a

sovereign enclave of immense cultural and spiritual significance.

The basilica’s Renaissance magnificence is complemented by the stunning Baldacchino and masterpieces like the Pieta. St. Peter’s Square, with its surrounding colonnades crafted by Gian Lorenzo Bernini, further enhances the spiritual and architectural allure of this iconic destination, making it an unparalleled pilgrimage for art enthusiasts and the faithful alike.

Doge’s Palace, Venice

The Colosseum, Rome

Murano, Venice

EATING OUT…

Nowhere in Italy is short of fantastic cuisine, from the rustic trattoria’s to the pizzeria’s of Naples, to the fine dining modern takes on classic ingredients, there are feasts to be had around every corner.

For those wanting a special night out, Daniele Lippi’s 2 Michelin Star Acquolina in Rome is the ultimate gastronomic extravaganza. Ian Warwick, Managing Partner at Deepbridge comments; “Surrounded by original artwork and sculptures, diners are treated to a plethora of outstanding courses, elevating humble ingredients to new and unexpected heights.”

When in Tuscany, steak lovers are in for a treat in the town of Panzano. Officina offers the very best local steaks, local produce and, being in the heart of Chianti, the very best local wine. Katie Hayes, Regional Director, South East, at Deepbridge advises; “The beauty of Tuscany – the olive trees, hill top towns and terracotta roofs – is only matched by the local food and Officina provides carnivores with an absolute treat.”

For those wanting the classic Italian trattoria, then where do you start. Phil Thompson, Regional Director, Central England at Deepbridge suggest Fischi per Fiaschi in Siena is as good as they come; “Unpretentious, as fresh as it comes and as welcoming as anywhere, this small trattoria represents what is great about holidaying and dining in Italy.”

Acquolina

Via del Vantaggio, 14, 00186 Roma RM, Italy

T: +39 06 320 1590

www.acquolinaristorante.it

Officina della Bistecca

Via XX Luglio, 11

Panzano in Chianti (Fi)

T: +39 055 852020

www.dariocecchini.com

Fischi per Fiaschi

Via S. Marco, 43, 53100 Siena SI, Italy

T: +39 0577 280971

www.facebook.com/FischiXFiaschi

OUT OUT…

The land of chiccetti, cafés, trattorias and pizzerias also offers some fantastic spots to while away the afternoon or evening. Tony Lyons, Project Manager at Deepbridge, recommends a relaxing Roman aperitif or digestive at Antico Caffè della Pace; “A historic café near Piazza Navona, it transforms into a lively bar in the evening. Enjoy a classic Roman experience in the elegant surroundings of this iconic establishment whilst watching the world go by.”

Gareth Groome, CFO at Deepbridge recommends a trip to Harry’s Bar in Venice. Established by Giuseppe Cipriani in 1931, Harry’s is a famous landmark in the city and is the home of the Bellini, a cocktail made with Prosecco and peach puree or nectar. Gareth comments; “Over the years, Harry’s Bar has attracted a diverse and notable clientele, including famous personalities such as Ernest Hemingway, Orson Welles, and Charlie Chaplin, and you can feel this recent history whilst enjoying the very best cocktails.”

For those wanting the most inspiring of views Lewis Tandy, Head of Marketing Communications urges a leisurely visit to Franco’s Bar in Positano on the Amalfi Cost; “With spectacular views of the glistening Amalfi Coast, this luxurious spot is the perfect summer spot for classic and innovative cocktails. But, it’s really all about the view!”

Antico Caffè Della Pace Srl

Via della Pace, 3 4/5, 00186 Roma

RM, Italy

T: +39 06 686 1216

www.caffedellapace.it

Harry’s Bar

Calle Vallaresso, 1323, 30124 Venezia

VE, Italy

T: +39 041 528 5777

Franco’s Bar

Via Cristoforo Colombo, 30, 84017

Positano SA, Italy

T: +39 089 812189

www.francosbar.com

Franco’s Bar, Positano

Harry’s Bar, Venice

Piazza Navona, Rome

Equally,

The

DEEPBRIDGE CELEBRATE GROWTH INVESTOR AWARDS SUCCESS

The Deepbridge team were proud to be recognised as sector experts at the Growth Investor Awards 2023, winning Best Specialist EIS Manager. Deepbridge was also recognised as ‘One to Watch’, in the Emerging Business Relief Investment ManagerUnlisted Award.

The Growth Investor Awards honour all those involved in putting investment to work in high potential businesses – from those providing or helping to source investment to those best optimising growth capital to scale. Recognising impact beyond investment, these awards highlight the value delivered to investors, businesses and Britain’s economy by fund managers, wealth managers, financial advisers, private equity & venture capital companies, corporate investors, angel syndicates, investment platforms and entrepreneurs.

WINNERS

ONE TO WATCH

BEST EIS INVESTMENT MANAGER – SPECIALIST (DEEPBRIDGE CAPITAL - LIFE SCIENCES)

Open to any investment manager specialising in Enterprise Investment Schemes with a specialist focus on a particular area of underlying investments. The judges were looking at the performance of services since 6th April 2022, assessing success across business performance, investment inflows, impact on the investee, adviser relations, customer feedback, and overall impact.

EMERGING BR INVESTMENT MANAGER – UNLISTED (DEEPBRIDGE CAPITAL - ESTATE PLANNING SERVICE)

Open to any investment manager specialising in non AIM based investments qualifying for Business Property Relief with AUM of up to £100 million on 6th April 2023. The judges were looking at the performance of services since 6th April 2022, assessing your success across investee selection, investment volume and performance, adviser relations, customer feedback, and overall impact.

MICROPLATE DX WINS BEST 'START-UP' BUSINESS

Award-winning University of Strathclyde spin-out company, Microplate Dx Limited has won Best 'Star-up' Business at Barclays Entrepreneur Awards 2023.

Microplate Dx is a diagnostics company that specialises in developing novel solutions to tackle the major global health threat of antimicrobial resistance.

Dr Poonam Malik Chair of the Board at Microplate Dx, said:

"What a fab outcome! Microplate Dx Limited was successful in receiving the Best ‘Start-up’ Business winner's trophy from amongst the many 100s of entries submitted, shortlisted, through Regional nations rounds and then winning the National Finals in London, this time at the Barclays Entrepreneur Awards 2023, Barclays EA23.

“Fabulous work by the whole amazing Microplate Dx Team. The team’s commercialisation and growth journey continues in getting national recognition amongst high-potential, innovative, revenue generating growth businesses. As a MedTech, Health Technology business- this reward and recognition at the UK-wide level becomes even more positive because it is competed against all technology companies, at a sector-agnostic level. Chosen by the judges for company’s strengths in Team's Leadership, raising Investment, commercial traction, partnerships, innovation & technology uniqueness along with the business's vision and mission for longer term inclusive influence and impact on the global society."

TOUCH BIOMETRIX LAUNCHES 'LARGEST EVER' FINGERPRINT SENSOR

Touch Biometrix, an investee company within the Deepbridge Technology Growth EIS portfolio, recently claimed it has built the world's largest and thinnest capacitive fingerprint sensor based on thin-film transistor (TFT) technology. Named TCAP60, the sensor is 3.2 by 3 inches, and therefore meets the criteria for the Federal Bureau of Investigation (FBI) FAP60 standard. FAP 50 and 60 scanners can be used to capture 4 flat fingers and rolled fingers simultaneously.

Eric Derckx, Chief Technology Officer at Touch Biometrix commented:

“Touch Biometrix decided to develop TCAP60, in FAP60 size and resolution as its first product, even if it is with the most challenging dimension within the FBI-certified list, because we knew our technology had the full scalability to any size and we wanted to prove to the world Touch Biometrix’s technology is the one to adopt."

CHANCELLOR EXTENDS EIS TO 2035

Great news that EIS has been extended!

No matter your political inclinations or views on the Chancellor’s Autumn Statement, we hope you share our delight that the Chancellor has now extended the Enterprise Investment Scheme (EIS) to 2035.

With 2024 representing the 30th anniversary of the launch of EIS as one of the world’s most generous tax relief incentive schemes, the capital that EIS investors have provided to early-stage companies has been invaluable and continues to be critical for UK economic growth.

Of course, from a financial planning perspective, the tax reliefs and growth opportunities share equal billing for why investors should be utilising EIS within their well-diversified portfolios. Said generous tax reliefs, of course, include 30% income tax relief, CGT deferral, IHT exemption, CGT free growth and Share Loss Relief.

REMEMBERING PETER JOHNSON

It is with great sadness that we report the death of Deepbridge Partner Peter Johnson.

Peter was born in Birkenhead in 1939, the son of a butcher. Having inherited, he expanded the family business to become Park Hampers and subsequently Park Group. At times, Peter was owner of both Tranmere Rovers FC, taking them from the fourth tier of English football to a League Cup Final and within touching distance of the Premier League, and Everton FC who won their most recent major trophy, the 1995 FA Cup Final, under Peter’s ownership.

In 2017 we welcomed Peter as a Partner of Deepbridge Capital.

Ian Warwick, Managing Partner at Deepbridge commented;

“Peter has been a long-standing business inspiration and it was a delight to welcome him into the Partnership in 2017. As well as his remarkable success with Park, the success experienced at Tranmere Rovers and Everton symbolised his acumen.

“Peter’s personal support, encouragement and insight were always very much appreciated. He will be sadly missed, not least by his amazing daughters.”

Everyone at Deepbridge sends their condolences and love to Peter’s daughters Charlotte, Kate and Susie, and the wider family.

PODCASTS

Join the Deepbridge Capital team each week as they discuss all things Deepbridge, speak with various investment experts within the company and discover more about the founders and CEOs’ running the portfolio companies Deepbridge invests in.

Each Deepbridge Discovery Podcast contains an informal conversation to understand how these leaders and teams perform in order to achieve their goals.

What is Antimicrobial Resistance?

Neciah Dorh (CEO at FluoretiQ Limited) joins the Deepbridge Discovery Podcast to discuss his background, why antimicrobial resistance was declared as the biggest health challenge of the 21st century by WHO, what his next steps and goals are and the challenges he has faced.

Can AI-Sight Reduce Diabetes Induced Blindness?

Dr Steven Powell (Chief Executive Officer at AI-Sight Ltd) joins the Deepbridge Discovery Podcast to discuss his background, what AI-Sight does and how it can reduce diabetes induced blindness, discussing diabetes causing damage to small blood vessels in organs throughout the body, including the eye (diabetic retinopathy) and what the future looks like for this University of Liverpool spin out company.

Meet Katie Nicholson

Katie Nicholson (Director at LCR Network) joins the Deepbridge Discovery Podcast to discuss her background, what the core tools/channels LCR Network utilises, how she has seen the angel sector within the UK change over recent years and what advice she would give to entrepreneurs in the Northwest.

Pacla Medical Discusses Key Milestones

Chongsu Lee (Founder/Chief Executive Officer at Pacla Medical) joins the Deepbridge Discovery Podcast to discuss how Pacla came to be and the key objectives, what his background was and what have been the key milestones to date.

MEET THE COMPANY

Noble Co-Founder, Co-Owner, Chairman & CEO

Simon Tutton , Regional Director - South West England & South Wales at Deepbridge Capital, interviews Martyn Noble, Co-Founder, Co-Owner, Chairman & CEO at Hurricane Modular Commerce, which is part of Deepbridge’s Technology Growth EIS portfolio.

Simon Tutton: Hi Martyn, great to meet you. Could we just start off by you telling us what the background to setting up Hurricane was?

Martyn Noble: Thank you for the invitation; it’s always a pleasure to support Deepbridge. The background of setting up Hurricane is a fascinating story that spans 35 years. Myself and my business partner, David Spottiswood, started our “white collar career” where we both joined the TNT group.

As we progressed and climbed the corporate ladder and ended up as directors at DHL, we always promised ourselves that we would go into business with each other.

To accelerate and fast forward the story, we had left corporate life, I opened my own business in 2007 where we were providing white labelled services to artists such as Foo Fighters, Paul McCartney, and Adele. We would sell tickets, venue concessions and merchandise over the internet. I exited that business in 2012.

David’s life, from a business point of view, was in parallel. He had created a business that was helping people in cross border e-commerce, trying to make that process easier.

Fast forward to 2016, we formulated Hurricane, and the auspices of the business was that e-commerce is growing, the fastest growing segment of B2C e-commerce was cross border. Now, that business in volume terms is somewhere around 180 billion shipments per year and gross merchandise value at about 1.2 trillion dollars.

At the same time of that growth, it was a double-edged sword, what with the geopolitical environment, there would be more regulation coming in, more fiscal policy, more compliance, increased fines, so on and so forth. So, we created something that utilises artificial intelligence.

We classify products ready for cross border, i.e. through customs authorities, we look at prohibited and restricted goods, we look at trade embargo goods, we look at free trade agreements and we look at compliance. We do all of this, in ultra quick time, which means our technology is ultimately scalable.

The way that we have built our systems is, normally if you were to classify a product for customs throughput, would take someone with a lot of skill, with a semi-automated classification catalogue in front of them, it may take them up to 15 minutes. Our system and our AI application can do all of that in as little as 128 milliseconds.

To accelerate and fast forward the story, we had left corporate life, I opened my own business in 2007 where we were providing white labelled services to artists such as Foo Fighters, Paul McCartney, and Adele. We would sell tickets, venue concessions and merchandise over the internet. I exited that business in 2012.

Martyn Noble Co-Founder, Co-Owner, Chairman & CEO

Martyn

ST: Wow. So, what are some of the opportunities for Hurricane?

MN: One of our notable achievements as a relatively young company, established in 2016, lies in our expertise in cross-border data. Despite facing challenges and trials, particularly in the realm of cross-border logistics, our strength resides in being not just a technology company but a highdepth content data company.

With a collective experience of 251 years in cross-border logistics among our team, our initial focus was on carriers and postal authorities, given our founders’ backgrounds in this sector. Establishing strong relationships in this domain was crucial. Now, the strategic move is to ascend towards the transactional aspect. We aim to expand our reach into marketplaces and deepen our presence in global and regional e-commerce platforms.

Looking forward, we are channelling significant investment into the Asia Pacific region, capitalising on the substantial market share of 25% within intra-Asia Pacific trade in the $1.2 trillion market. In the spirit of sportsmanship, drawing from my background, I aspire to play on the home turf of our North American counterparts, expanding our reach globally and regionally. This dual approach represents the sectoral and global/ regional opportunities we are poised to explore.

ST: Great. Could you tell us your hopes and objectives for the next 12 to 36 months?

MN: In a concise overview, the impact of the pandemic on Hurricane has been significant, disrupting enterprise customer engagements and causing a shift in the technology roadmap. The capitalisation challenges during the market turmoil were a notable concern.

While the b2c e-commerce market thrived domestically due to behavioural changes, cross-border operations faced hurdles with a 60% reduction in global capacity. Despite the growth of cross-border e-commerce, the lingering effects of the pandemic, shipping backlogs, and geopolitical crises create an unstable environment.

Over the next 12 to 36 months, my hope is for a semblance of stability to prevail. I implore the world to grant us an opportunity for some form of stability. However, I acknowledge that digitization has significantly hastened various processes, presenting both a tremendous upside and a potential downside for Hurricane. On the positive side, this acceleration aligns well with our strengths.

On the flip side, it intensifies the peaks and troughs within a time-frame that, in the past, spanned 24 months but now feels condensed, almost down to a mere two weeks.

With a collective experience of 251 years in crossborder logistics among our team, our initial focus was on carriers and postal authorities, given our founders’ backgrounds in this sector.

Martyn Noble Co-Founder, Co-Owner, Chairman & CEO

DEEPBRIDGE CAPITAL HEADLINES NORTHCOTE OBSESSION'24, RAISING £110K FOR CHARITY

Lancashire, UK, February 2024 – Northcote Obsession'24, the culinary extravaganza that brought together 18 world-class chefs holding a staggering 21 Michelin Stars, successfully concluded, leaving a lasting imprint not only on the gastronomic landscape but also on charitable endeavours.

From the 19th of January to the 4th of February, Northcote, located in the picturesque Ribble Valley, hosted a soldout event featuring an exceptional lineup of chefs who curated original fine dining menus, showcasing 105 distinctive dishes to 1,754 guests.

The festival, known as Obsession, was not only a culinary delight but also a testament to the resilience of the hospitality industry facing current challenges.

The star-studded roster included renowned chefs such as Gareth Ward, Sarah Hayward, Adam Handling, James Knappett, Tom Barnes, and the recently awarded two Michelin stars, Aktar Islam. Culinary legend Michel Roux Jnr and daughter Emily brought the festival to a memorable close, emphasizing Northcote's commitment to nurturing young talent.

Obsession24 achieved more than culinary excellence; it raised an impressive £110,000 for charity, distributing funds among three vital causes.

The charities benefited were Hospitality Action, Northcote's dedicated industry charity (£76,000), DEBRA, Northcote's dedicated UK charity (£20,000), and Eye Nepal, Northcote's dedicated international charity (£14,000).

Image by: Scott Rhodes@bacononthebeech

Image by: Scott Rhodes@bacononthebeech

Image by: 7Fifty @7fiftyfilms

Northcote's Executive Chef, Lisa GoodwinAllen, expressed gratitude for the overwhelming success of Obsession24, acknowledging the dedication of the entire Northcote team. She highlighted the importance of giving back to charities close to her heart, with a special mention of the support for Hospitality Action, which aids professionals in the industry facing challenges.

For the first time, Lisa Goodwin-Allen's Obsession menu will be available postevent, allowing visitors to Northcote to savour the culinary delights from the festival until April. The exceptional wine pairings, curated by managing director and wine director Craig Bancroft, further enhanced the gastronomic experience.

The festival's behind-the-scenes moments were shared with the public through 23 original films, generating over half a million views during the event. The camaraderie among chefs and the precision required to orchestrate such a festival were evident in the footage.

Deepbridge Capital, the headline sponsor, played a pivotal role in making Obsession24 a reality, contributing to the event's success. Other sponsors included San Pellegrino, Gaggenau, Wellocks, Electrolux Professional, The Macallan, and Louis Roederer, among others.

Obsession, which originated in 2001, has evolved into a celebration of great food, wine, and friendship, attracting some of the world's most innovative chefs. The event's commitment to delivering a memorable culinary experience remains steadfast, and with Deepbridge Capital's support, Obsession continues to be a beacon of excellence in the culinary world.

As the curtains close on Obsession'24, Northcote leaves an indelible mark not only on the palates of its guests but also on the lives of those benefiting from the substantial charitable contributions generated during this exceptional culinary journey.

Image by: Scott Rhodes@bacononthebeech

Image by: Scott Rhodes@bacononthebeech

Image by: 7Fifty @7fiftyfilms

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Artificial Intelligence THE INVESTMENT POSITION

Oliver Wheatley, Investment Director within the Technology Growth investment team, assesses this much discussed phenomenon through an investment lens.

The discourse surrounding Artificial Intelligence (AI) was a dominant force in conversations throughout the past twelve months. The impact of AI on the workplace, its potential revolutionary role in education, and the associated risks have become complex topics permeating various industries. In the realm of stock markets, 2023 witnessed a significant theme: the rise of AI and its influence on investment decisions.

Investors are keenly assessing the development and monetisation prospects of AI, with notable technology trends propelling US stocks higher. Companies such as Microsoft, Meta (formerly Facebook), and Alphabet (Google), at the forefront of AI innovation, have experienced substantial surges in their share prices this year.

Examining the trajectory of AI development and its implications for investments and employment provides valuable insights for investors.

It is important to understand the rise of artificial intelligence in the context of market dynamics. As the discussion around AI gains momentum, exploring the historical context of AI becomes crucial. Alan Turing’s 1950 paper, “Computing Machinery and Intelligence,” laid the groundwork for discussions on building intelligent machines and testing their capabilities.

Computer-led decision-making has been a consideration and technological goal for decades. As technology has improved

and computing power accelerated, the opportunity for genuine artificial intelligence has become possible and we are now seeing the very early-stages of what could be capable. In recent years, AI has played a pivotal role in processing large datasets, exemplified by its applications in Google Translate and Facebook’s personalised ad predictions.

The key to contemporary AI lies in longform language models, such as General Purpose Technologies (GPTs), and the emerging focus on ‘invention in the method of invention’ (IMIs), which are deep learning tools with the potential to reshape innovation in multiple industries.

Major tech companies, recognizing the potential of AI, have strategically invested in this transformative technology. Microsoft, for instance, has significantly benefited from its $13 billion investment in OpenAI, the creator of the generative AI chatbot ChatGPT. This move positions Microsoft as an early market leader, with the potential to capitalize on AI’s revenuegenerating capabilities.

Rivals in the tech industry, such as Alphabet, have responded by launching their own AI initiatives, such as the ChatGPT equivalent named Bard. The AI trade not only benefits tech giants but also extends to industries crucial for powering AI, as evidenced by Nvidia’s substantial revenue increase.

The rise of AI raises questions about its impact on employment. A December

2022 economic study commissioned by the US government explored AI’s potential to automate non-routine tasks, exposing a broader segment of the workforce to disruption. While AI’s ability to outperform humans in complex tasks is acknowledged, the study emphasizes the need for governments to invest in AI research that augments, rather than replaces, human workers.

Regulation emerges as a pivotal factor in shaping the future of AI. Ethical considerations and concerns about surpassing human cognitive abilities prompt discussions about regulatory frameworks.

The UK, US and EU governments advocate for immediate best practice guidelines for companies adopting AI, with long-term regulations solidifying in legislation.

While regulation may act as a potential brake on AI progress, in the short to medium term, AI enabled businesses will represent interesting investment opportunities at all levels of the investment sector, including within the venture capital sector where Deepbridge invests.

Within the Deepbridge portfolio, we have several companies utilising AI and developing AI platforms, with our expectation being that this will be the norm over coming years. Investing in these technologies is exciting and could potentially be at the forefront of tech stocks for years to come.

Oliver Wheatley Investment Director, Deepbridge

MEET

STEVE TAYLOR

Having joined Deepbridge in 2021, my role is Technical Manager within the Deepbridge Technology investment team and as ESG Lead. The former element involves overseeing the logistics and formalities with regards to our investment decision making and management.

In 2023 I qualified as a Chartered ESG Investment Manager, which is of particular interest across the investment ecosystem as there is increasing scrutiny on responsible investing.

ESG investment management refers to the integration of environmental, social, and governance (ESG) factors into the investment decision-making process. ESG criteria are used to evaluate the sustainability and ethical impact of an investment in addition to traditional financial metrics. Here’s a brief breakdown of each component:

ENVIRONMENTAL

This aspect focuses on how a company manages its environmental impact. It may include considerations such as carbon emissions, energy efficiency, waste management, and resource conservation.

SOCIAL

Social factors assess how a company interacts with its employees, communities, and other stakeholders. Issues like labour practices, employee relations, community involvement, diversity, and human rights fall under the social category.

GOVERNANCE

Governance considerations evaluate the quality and effectiveness of a company’s management and oversight structures. This includes factors such as board composition, executive compensation, shareholder rights, and adherence to ethical business practices.

Working with investee companies from their earliest engagement with Deepbridge, through to the exit process as companies mature is fascinating.

My background pre-Deepbridge was predominantly focused on commercial management and business improvement roles, so witnessing and supporting the growth of our portfolio companies, who are all seeking to solve real-world problems is fascinating and what venture capital is all about.

I am excited about 2024 as we are expecting exciting news from numerous portfolio companies. We have a number of companies now working actively on exit opportunities for investors, we are expecting considerable co-funding to be attracted and we, of course, continue to meet and review exciting new companies. The UK continues to produce so many great innovators and technological advancements.

Away from the office my time is primarily centred around being Dad, and coaching my daughter’s football team. But when I do get chance, my personal passions are sailing and swimming… anything to do with water really!! Being from the South Coast originally, I was never far from a boat or the sea when growing up and I guess that never leaves you.

Steve Taylor Technical Manager & ESG Lead, Deepbridge

MEET THE COMPANY

Mark Roger CEO, Ibis Vision

Andrew Aldridge, Partner & Chief Marketing Officer at Deepbridge Capital interviews Mark Roger, CEO at Ibis Vision, which is part of Deepbridge Capital’s Life Sciences EIS portfolio.

Andrew Aldridge: Hello Mark, thank you for joining me, it’s great to see you. Could you tell us a little bit about IbisVision, how it came to be and some of your key objectives?

Mark Roger: Certainly. Ibis Vision is a startup that has evolved over a decade, primarily focused on medical data. Its inception traces back to a retired eye surgeon who grew frustrated with the inefficiencies of testing equipment in interacting with patients and clinicians. This frustration sparked the desire to revolutionize the visual field test (VFT) and enhance outcomes for patients while providing more accurate results for clinicians. Although the company’s originator is no longer actively involved, the core mission of improving access to eye care for patients remains steadfast. The initial goal expanded, envisioning a software platform that could accommodate a variety of tests beyond the original one. Today, IbisVision offers a comprehensive suite of tests on a single platform, reflecting its commitment to advancing eye care.

AA: So what was your background before getting involved in IbisVision?

MR: My professional background revolves around software and technology management, particularly in the health and leisure sector. I’ve had extensive experience running software companies and have been actively engaged on the investment side with technology funds, including M&A for a significant software acquisition entity. My journey with Ibis Vision began somewhat serendipitously, as I initially invested in the company, eventually transitioning into a leadership role. Despite my wife’s playful reference to it as “paying to go to work,” I became deeply passionate about the company’s potential to make a difference. This enthusiasm led me to invest not only money but also time and

effort, ultimately culminating in my current role as the CEO, a position I’ve held for the past 5-6 years.

AA: What key milestones have you achieved to date? What are the main accomplishments that you take pride in, or what aspects are currently performing well?

MR: I would consider obtaining the original CE certification as a key milestone in the early days, validating our software as a medical device. Subsequently, a significant turning point, albeit influenced by the challenges of COVID, was a fundamental shift in our business approach. We evolved from envisioning a product disrupting clinical environments in opticians to exploring remote capabilities. While I’m not fond of the term “pivot,” it accurately describes our transition into a teleoptometry platform—a unique offering in its category. This shift allows individuals to undergo a majority of tests remotely, engaging with clinicians from the comfort of their homes. This innovative approach, akin to our current interaction, facilitates a seamless connection between patients and clinicians, embedding tests within a telehealth environment—a monumental milestone in reshaping our business.

AA: How did the early-stage ecosystem in the UK contribute to your business, both in terms of grants and overall support? As the CEO, how did this landscape benefit you during the initial stages of your venture?

MR: Commencing a business in Scotland undeniably comes with numerous advantages. Operating within this locale provides access to the Scottish Enterprise ecosystem, a valuable resource that extends beyond mere grants, offering expertise to foster business growth and development. While I entered with a bit more experience than some, the pivotal

introduction to the business founders occurred through the GlobalScot program within this ecosystem. The support mechanisms and funding opportunities, including grants, within Scotland are certainly commendable. However, to present a balanced perspective, it’s essential to acknowledge certain challenges. Despite potential political leanings, Scotland, for businesses, especially start-ups and scale-ups, might pose risks in terms of isolation. It’s crucial to cast a wider net, exploring markets and financing options beyond the local landscape. While Scotland boasts a robust start-up ecosystem, venturing beyond its borders, both nationally and internationally, becomes imperative for sustained growth and realizing the full potential of a business.

AA: So, in terms of your journey, where does Deepbridge fit in, and how did you first encounter the firm? What factors led you to choose Deepbridge, and what aspects of the Deepbridge’s approach resonated with you during this process?

MR: Securing support from high-net-worth individuals and early-stage angels marked one milestone, complemented by grant funding from Scottish Enterprise. However, for substantial business scaling and proving our investment worthiness, aligning with prominent players became imperative. Bringing on board an early-stage venture capitalist was deemed crucial, and at that juncture, Deepbridge emerged as a fitting partner. Identifying a fund with a focus on life sciences and healthcare technology, whose leadership shared aligned values and a passion for making a difference in healthcare, was pivotal. Deepbridge not only met these criteria but also provided the operational freedom essential for our growth, coupled with the necessary guidance when required.