Show notes (AI generated, ‘natch!) In this episode: Anthony Miller introduces the BritChips Podcast and frames IP Group as a later-stage investor than Parkwalk Advisors, with both firms sitting under the same parent structure. Lee Thornton explains that Parkwalk uses EIS retail capital for very early-stage university spinouts, while IP Group also deploys balance sheet capital and third-party scale-up funds for later rounds. The conversation breaks down typical cheque sizes: * Parkwalk can write smaller cheques and also support larger ones, often starting around half a million and reaching several millions * IP Group balance sheet capital typically starts around three million and can go up to around ten million * Scale-up funds can provide much larger amounts when companies need more capital Lee says IP Group focuses on science and technology businesses with defensible, order of magnitude better propositions, especially in future compute and silicon. They discuss the importance of flexibility across stages, including situations where Parkwalk and IP Group co-invest in the same company. Lee shares that he came into semiconductor investing from a chemistry and investing background, not from chip design, and that he sources deals through universities, tech transfer offices, co-investors, and industry networks. A major theme is fit: Lee stresses that investors are not interchangeable and that founders do better when they understand what a specific fund actually invests in. He says the strongest pitches show evidence, not just ideas: * proof the technology works * peer-reviewed research or patents * third-party validation from corporates or customers * a clear reason the opportunity is commercially meaningful The discussion goes deep on conviction: * conviction in the technology * conviction in the founding team * conviction that the business can get to an exit Lee explains that most first meetings involve one or two founders, though he likes to see a broader senior team of three to four people where possible. Exit planning comes up early. Lee wants founders to think from day one about how investors get their money back, whether through acquisition, IPO, or another liquidity event. He says the firm is patient on timing, with exits sometimes taking five to ten years, often ten to fifteen years, and occasionally longer. The conversation closes on the reality of venture investing in deep tech: most investments fail, the winners must cover the losses, and the goal is to recycle capital into the next generation of companies. Timestamps (approx) 00:00 - Anthony introduces the podcast and today’s guest, Dr. Lee Thornton 01:12 - How IP Group is structured across multiple funding stages 02:53 - Parkwalk, balance sheet capital, and scale-up funds 05:32 - Typical cheque sizes and why flexibility matters 06:46 - Why deep tech funding labels like Series A and B can be messy 07:48 - Co-investing from different parts of the group in the same company 08:54 - How Lee came into semiconductor investing without a chip background 10:06 - Where deal flow comes from across universities and networks 11:22 - Why investors are not all the same 12:34 - What impresses Lee when founders show they understand his portfolio 13:41 - The gap between first-time fundraisers and companies with traction 14:59 - Evidence, patents, papers, and proof of commercial value 16:41 - What IP Group really wants from a pitch 17:16 - Conviction as a two-sided test: technology and team 20:29 - What Lee wants to see in the founding team 21:43 - Team size and seniority at the first cheque stage 23:48 - Why exit planning should be baked in from the beginning 24:57 - How long IP Group is willing to hold investments 26:19 - Why deep tech and university spinouts take longer to mature 27:32 - IPOs, acquisitions, and what actually happens at exit 29:38 - Why most investments fail and how winners have to compensate 30:40 - Handling difficult conversations when a company is not succeeding 31:48 - What happens when a founder wants to start again after a setback 33:31 - When a business is not growing fast enough but is still viable 34:44 - Lee names companies he is excited about in his portfolio 35:50 - Best advice for founders raising money and pitching investors 38:22 - Why predicting the future is hard, but investing in it is the job 39:26 - Closing thoughts on the future of UK semiconductors and deep tech This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit anttheantidote.substack.com
