Exclusive Interview with a UK Security VC - how to raise funds for your startup?
May 29 2008 | 0 comment(s)
Exclusive Interview with Richard Leaver, the CEO of PegasusBridge Defence & Security Fund Limited, one of the first defence & homeland security funds in Europe and sponsor of the Global Security Challenge 2008. In our interview, Richard talks about security technology hotspots and how to raise VC funding for your startup.
GSC: Where do you see the main differences in the venture capital landscape between Europe and the US?
Richard Leaver: "The pricing of US investment opportunities is at least 10x higher than the equivalent in Europe for many examples though not all. This is most likely a result of the greater supply of VC funds in the US but also that the revenues available to unquoted companies based in the US with a compelling offering can be substantial simply because of the immediate market."GSC: Which security technology do you predict to take off next and why?
Richard: "Face Biometrics coupled with Access Control without a doubt. It provides a platform to deliver the ability to make "your face IS your key". Simply put, it allows verification that you ARE who you say you are, doing WHAT you should be doing, WHERE you are allowed to be.
Stand-alone authentication of documents and identity verification are essential for secure operations including border controls. However pervasive facial biometrics can be used for access control applications even as relatively mundane as access to major building sites for a rapidly changing workforce."
GSC: What security-related technologies is PegasusBridge Fund interested in?
Richard: "Mainly Identification, Protection and Detection non lethal technologies originating in security and defence but with clear dual-usage civilian applications across multiple sectors with a potential to be a global leader. An ideal example is to remember Liquid Crystal Displays which arose from work at RSRE Malvern in the 70's and is now ubiquitous for display technology."
GSC: At what stage should a startup be to have a realistic chance of getting funded by you? And how much do you normally invest?
Richard: "We look for proven technologies with good management, deep protectable Intellectual Property and early customer revenues. This would normally be Series A, B or C stage. We would normally expect to invest £250,000 to £500,000 initially and follow on through the life of the investment depending on its performance. We would rarely invest in a startup or company without revenues but there are no hard and fast rules, each deal is assessed on its merits."
GSC: What do you like about BP-competitions as a VC? How do competitions add value?
Richard: "Competitions such as the Global Security Challenge and MOD's Grand Challenge are excellent. They provide a challenging and focussing environment for young companies and their teams to address commercial issues head-on in a positive and creative atmosphere. This is a low risk path to companies and VCs to meet each other, draw attention to their respective abilities and offerings and quite simply, promote a valuable and necessary introduction and dialogue. This is the starting point for doing business with a self-selected audience who by their attendance and participation, make it clear they are interested and there to make things happen. That is real value."About PegasusBridge Defence & Security Fund Limited:
The Fund is able to invest in both unquoted and some quoted investments including merger & acquisition opportunities. It has a very strong management team, board and advisory board as well as a network of prominent industry advisers and specialists delivering an unparalleled level of Homeland Security, industrial, investment and fund management experience. www.pegasusbridgefund.com
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