In Europe, there is a noticeable scarcity of venture capitalists who have transitioned from being founders or industry “operators,” as they are often referred to. While some exceptions exist, like Niklas Zennström at Atomico, Brent Hoberman at Firstminute Capital, and the recent emergence of Plural, co-founded by Taavet Hinrikus (formerly of Wise), Sten Tamkivi (formerly of Teleport), and Ian Hogarth (formerly of Songkick), this list of “operator-turned-VCs” is rather limited across the European technology landscape.
However, a different narrative unfolds in Bristol, England.
Harry Destecroix, during his PhD studies at the University of Bristol, co-founded the biotech startup Ziylo. This university spin-off developed a synthetic molecule designed to bind with glucose in the blood. With a desire to immerse himself in a community of like-minded “SciTech” companies, he established Unit DX in 2017, an incubator in partnership with the University of Bristol, aimed at advancing companies similar to his own.
In 2018, Destecroix successfully exited Ziylo, selling it to the Danish firm Novo Nordisk for an estimated value exceeding $800 million. Seizing this opportunity, he embarked on a new venture to create science-based startups in Bristol. He launched the “tech ecosystem” known as “Science Creates,” comprising UnitDX and UnitDY wet labs, a £15 million investment fund in collaboration with the University, and a network of strategic partners.
Fast-forward to today, and Destecroix has expanded his journey by introducing SCVC, aspiring to become a $100 million fund. He claims to have achieved its initial funding round (the exact amount remains undisclosed). Based in Bristol, SCVC will specialize in investments in deep technology related to health and climate.
During our conversation, Destecroix expressed his sentiment, stating, “It’s been two years, and I feel like the more I’ve invested, the more addicted I’ve become to it. It’s been a wonderful journey. I also sense there aren’t enough founders in the U.K. who transition into venture capital. So, we aim to build a venture fund that’s genuinely led by founders.”
SCVC’s initial $17 million seed fund, prior to its full-fledged venture capital transition, supported 12 companies, spanning therapeutics, diagnostics, quantum sensors, and semiconductors.
Recent investments include “Delta g” (quantum gravity sensors), Isomab (biotech), and Scarlet Therapeutics (therapeutics based on red blood cells).
The new fund will focus on pre-seed and seed-stage investments, offering initial checks ranging from $500,000 to $3 million, along with follow-on funding for Series A, up to $7 million.
VyperCore, a startup developing modified processors using RISC-V technology, is SCVC’s inaugural investment. Jon Craton, an angel investor and former co-founder of Zynstra (acquired by NCR Corporation), joins Destecroix as SCVC’s co-founder. Bristol-based founder John Williams, co-founder of Kudan (specializing in artificial perception technologies), assumes the role of the firm’s first venture partner.
Destecroix elaborated on their unique approach, saying, “Our specialization lies in the 1% of startups rooted in science, those that may appear unconventional to outsiders. These startups often face challenges like the need for substantial funding and uncertainty about their product. Such ventures are perceived as unconventional by traditional business standards, hence requiring a distinct and specialized skill set to support them.”
Before the recent announcement of the U.K. rejoining the EU’s Horizon science funding program, Destecroix criticized the impact of Brexit. “I definitely think it hasn’t helped,” he stated. “It has made it more challenging to secure funding from European investors. I believe that we need to be part of larger trading blocs to tackle significant issues such as energy and AI effectively.”
However, he voiced support for the U.K.’s approach to AI, noting, “I think the EU’s approach to AI involves excessive regulation, whereas the U.K. is adopting a more agile stance. I’ve heard from startups in France considering relocating to the U.K. We need to apply AI across various sectors, including government, life sciences, and healthcare.”
The news of SCVC’s launch will undoubtedly invigorate Bristol’s thriving tech scene, which already boasts notable companies like Ultrahaptics, Open Bionics, Graphcore, and Immersive Labs.
