Show Notes 136: Democratising the Future of Venture Capital with ET Captial

In the latest episode of the Cambridge Tech Podcast, hosts Faye Holland and James Parton dive deep into the world of venture capital with Martin Rigby, co-founder of ET Capital. This engaging discussion not only highlights the evolution of venture capital in Cambridge but also unveils a fresh approach to investing that could reshape the landscape for both investors and startups.

Weekly Cambridge Tech News features Nyobolt, ARM, AstraZeneca, and Superdielectrics.

Key Highlights from the Episode:

• The Power of Diversification: Martin shares insights from his research, revealing that a diversified investment strategy in Cambridge tech deals since the mid-1990s has consistently outperformed traditional stock market benchmarks like the FTSE 100.

“If you took a diversified investment approach and invested in most tech deals in Cambridge... you would have a strong return.”

ET Capital's Journey

• Martin recounts his journey from a venture capital firm to establishing ET Capital, which has managed nine funds since its inception in 1993. The firm has successfully backed notable companies, including those in life sciences and low carbon technologies.

“We try to be an old-fashioned venture partnership... we like to think we're sufficiently neurodiverse.”

A New Fund for the Future

• The episode introduces ET Capital's new fund, designed to democratise investment opportunities for a broader range of investors, particularly those who may not have access to traditional angel networks.

“We want to push down the opportunity to participate in these high growth, early stage Cambridge businesses.”

Investing in the Cambridge Ecosystem

• Martin emphasises the importance of collaboration with established deal originators like Cambridge Enterprise and Deep Tech Labs. This partnership aims to ensure that investments are made in high-potential startups.

“If you invest in every deal coming out of those deal originators... you could actually deploy £100,000 at a time.”

Why Listen to This Episode?

This episode is a treasure trove of insights for tech founders and venture capitalists alike. Martin’s perspective on the challenges of picking winners in venture capital is both refreshing and thought-provoking. He candidly discusses the unpredictability of liquidity in the venture market and the importance of a diversified approach to mitigate risks.

Important Quotes to Remember:

• “Picking winners doesn’t, by and large, get it right... therefore a diversified investment approach is more likely to succeed.”

• “We are following the data... if you just invest in the seed round, then on balance you will get the return.”

• “We have got an education hill to climb... we’re rediscovering an investment tradition.”

Join the Conversation

If you’re a startup founder looking to navigate the complexities of venture capital or an investor eager to explore new opportunities, this episode is a must-listen. Martin’s insights not only illuminate the current state of the Cambridge tech scene but also inspire a new generation of investors to rethink their strategies.

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