Investing in light: building the foundations of the photon economy

In the relentless march of digital progress, light is becoming the new electricity. As global industries pivot towards AI, quantum computing, autonomous systems, and next-generation communications, the limitations of electronics are becoming increasingly clear. Photonics - the science and engineering of harnessing light - offers the speed, efficiency, and scalability to power this new era.

At Foresight Group, we believe photonics represents one of the most compelling investment opportunities of the next decade. It is a foundational technology that will underpin the next industrial revolution. It touches everything from how we compute, to how we communicate, sense, and manufacture.

Our early investments in Ayar Labs, Vector Photonics, Phlux Technology, Mach42, Zero Point Motion, Opsydia, and Living Optics demonstrate our conviction that the UK and Europe can lead the global transition from electrons to photons.

We have long been backing the builders of the photon economy.

By supporting the companies building the critical tools, components, and integration layers of the photonics stack, Foresight is helping to create the conditions for scalable, sustainable innovation.

Ayar Labs – The Future of Data Movement

Ayar Labs’ optical interconnects replace traditional copper links, enabling chip-to-chip communication at the speed of light. Their solutions are already being integrated into next-generation AI and data centre architectures, addressing one of the biggest bottlenecks in computing: data movement.

Vector Photonics – Reinventing the Laser

Vector Photonics’ surface-coupled laser (SCL) platform is redefining what’s possible in high-performance laser technology, with applications from LiDAR to datacomms. By breaking the design rules of conventional photonics, Vector is creating the lasers of the future.

Phlux Technology – Seeing the Invisible

Sheffield-based Phlux has developed a new generation of InGaAs infrared detectors that deliver superior sensitivity with dramatically lower noise. These devices have critical roles in automotive sensing, quantum systems, and optical communication.

Mach42 – Accelerating the Photonics Toolchain

Mach42 is building the automation layer for photonics R&D and manufacturing, bringing modern software and process control to an industry still dominated by manual setups and bespoke tools. Their solutions reduce development times, improve reproducibility, and help bridge the gap between lab-scale research and scalable production.

Zero Point Motion – Fusing MEMS and Light

Zero Point Motion’s hybrid photonic-MEMS sensors promise a step change in motion sensing accuracy, with applications from autonomous navigation to precision industrial systems.

Opsydia – Waveguide Engineering for Optical Systems

Originally spun out of Oxford University, Opsydia’s expertise in precision waveguide inscription enables novel optical pathways for next-generation photonic devices, pushing the boundaries of miniaturisation and performance.

Living Optics – Reinventing Spectroscopy for Chip Fabrication

Living Optics’ hyperspectral imaging technology replaces traditional spectroscopy in semiconductor fabrication, offering real-time, non-destructive inspection and quality control at unprecedented resolution. This innovation could redefine manufacturing yield and process monitoring across the industry.

The Challenge: building a scalable photonics ecosystem

While the opportunity is immense, the path to scale is fraught with structural challenges that make early-stage investing in photonics both critical and complex.

• Foundry access is a bottleneck

  Demand for photonics foundry slots is significantly outpacing supply. For early-stage start-ups, securing fabrication time has become highly competitive-delays that might seem minor can prove existential for pre-revenue companies.

• Manufacturing is still ‘artisanal’

  Unlike CMOS semiconductor production, photonics manufacturing lacks standardisation. Processes remain highly bespoke, resulting in longer R&D cycles, higher costs, and greater yield variability. Tooling and testing systems are only now beginning to converge towards industrial norms.

• Innovation is outpacing industrial readiness

  Photonics is a rapidly evolving domain. Today’s cutting-edge device can quickly become legacy as the technology frontier moves forward. Spotting the winners at the Seed or Series A stage demands deep technical understanding, patient capital, and a degree of luck.

A call to action

The UK Government’s recent £10 million fund to support next-generation semiconductor development is a welcome step, but it needs to be an order of magnitude larger to meaningfully address the capital and infrastructure gaps constraining our domestic photonics ecosystem.

The global race to industrialise photonics is well underway. To ensure the UK and Europe are not left behind, we need deeper collaboration between government, investors, academia, and industry.

Foresight is proud to back the entrepreneurs already lighting the way forward—but we can’t do it alone.  If you’re building in photonics, or looking to partner in accelerating this new industrial platform, we’d like to hear from you.

The future isn’t electronic. It’s photonic.