What does Foresight Group do, and what is your role within the business?

Foresight Group is a London-listed asset manager with around £12 billion in assets under management. We operate across infrastructure, private equity, venture capital and private debt, with a strategy centred on investing in high-growth opportunities that make a tangible impact.

I’ve been with Foresight for over five years, focusing exclusively on our deep technology strategy, particularly through the Foresight Technology VCT. My role is to identify and support early-stage technology companies which address critical global challenges including climate change, ageing populations, limitations in classical computing and global security. My background of previously working as an automotive engineer and strategy consultant gives me a unique perspective to navigate this exciting space.

What makes the Foresight Technology VCT different in such a congested market?

The Foresight Technology VCT stands out because it is uniquely focused. Unlike many generalist VCTs that spread investments across a wide range of sectors or industries, our fund specifically targets companies developing innovative technologies which address large, global market opportunities.

We partner with companies commercialising innovative scientific and engineering breakthroughs, often originating from top-tier universities or research institutions. Our partnership with Fortescue, formerly Williams Advanced Engineering, which has been in place since 2017, bolsters our technical capabilities and sets us apart from competitors.

Our regional office model is another differentiator. With offices across the UK, including Edinburgh, Nottingham, Manchester and Cambridge, we can closely engage with academic ecosystems and local businesses, uncovering high-potential companies in areas often overlooked by other funds. This approach allows us to support transformative businesses outside the typical “golden triangle” of Oxford, Cambridge and London.

How does the Foresight Technology VCT address the issues that the world is currently facing, such as climate change, energy and data security, and healthcare?

At Foresight, we focus on decade-long megatrends rather than fleeting market hypes. Challenges like climate change, healthcare demands, and energy security are not short-term issues-they’re fundamental transformations that require long-term solutions.

Take climate change, for instance. We’ve invested in Previsico, a company that offers hyper-accurate flood forecasting. Its technology helps insurers and infrastructure managers proactively mitigate damage during extreme weather events, which are becoming more frequent and severe.

In healthcare, we’re backing Lifelight, which uses a smartphone camera to monitor blood pressure. This innovation supports the growing demand for telemedicine and helps reduce strain on healthcare systems by enabling patients to perform vital checks at home.

We’ve invested in a company called Mach 42, which uses neural networks, a form of artificial intelligence, to speed up the design and verification of semiconductor chips. Mach 42’s technology is allowing companies to massively reduce the time taken to verify these chips before they go into production, giving them an edge in this highly competitive market.

In data security, we’ve invested in Cavero Quantum, an exciting early-stage company spun-out of the University of Leeds. Cavero is developing a unique encryption technology which cannot be cracked by future generations of quantum computers – a key concern with existing encryption techniques.

These investments illustrate our commitment to tackling real-world problems through scalable, innovative solutions.

Can you give an example of a recent investment that best showcases your strategy in action?

One of the standout companies in our portfolio is Lifelight. As I mentioned earlier, it enables accurate blood pressure readings through a smartphone camera. This breakthrough technology aligns perfectly with the global shift towards telemedicine and digital healthcare.

Another example is Illumion, a spin-out of one of our existing portfolio companies which has developed a novel electrochemistry microscope to look inside batteries and see what is going on in real time as the battery charges and discharges. Illumion’s machine offers insights as to when and how the materials inside the battery might crack, break or degrade during use. These insights will allow engineers to develop new generations of batteries with more capacity, longer lifetimes, greater durability and faster charging times.

These examples, not only showcase our focus on transformative technologies but also highlight the practical applications and real-world impacts of our investments.

Artificial intelligence (AI) is transforming industries, how is it impacting your strategy?

Al is undeniably a game-changer, but it’s also a space where hype can outpace substance. The rapid rate of technological advancement means that what’s cutting-edge today may become commoditised within months.

At Foresight, we focus on Al applications that solve clear, tangible problems. For example, Mach42 uses Al to accelerate the design and verification of semiconductor chips. This addresses a critical bottleneck in the tech industry as the demand for more powerful chips continues to grow.

While Al presents incredible opportunities, we’re cautious about over-investing in trends that are undergoing significant periods of rapid innovation and ‘creative destruction’. In these circumstances it is hard to understand how the market and technology will evolve, and how a company will compare once it has finished developing the technology and is bringing it to market. Instead, we aim to back companies that have a 10-100x improvement compared to incumbent technologies, serving large, global markets, and which are headed up by a world class team.

The Foresight Technology VCT has only been running for four years, a relatively short track record, why should investors consider it for their portfolio?

While the VCT share class is young, the strategy underpinning it has been active since 2017. Many of the companies in our portfolio have been with us for years, progressing through multiple funding rounds. This long-term involvement allows us to thoroughly understand and support their growth trajectories.

Something to be said about technology companies is that they do, by nature, require patience. These companies often have extended development cycles as they refine their innovations, bring them to market, and scale operations. While returns may take longer to materialise compared to other sectors, the potential rewards could be substantial.

The portfolio now consists of around 35 companies spread across high-growth technology sectors, offering diversification and maturity. As we enter the window for potential exits, we’re optimistic about delivering returns to our investors. The recent challenges in the M&A market have affected the entire industry, but our focus remains on building a resilient and impactful portfolio.

What are some of the core technology themes you’re exploring for future investments?

Several themes excite us. One is autonomous systems, particularly autonomous technologies that can operate in complex environments. While our focus is not on offensive technologies, the broader applications in national security and defence are compelling.

Another theme is industrial Internet of Things (IoT) and sensors. These technologies are essential for collecting and analysing data from assets like factory equipment or shipping containers. As industries become more data-driven, these solutions will play a critical role in improving efficiency and decision-making.

We’re also interested in next-generation interfaces, such as holographic displays and 3D audio. While the “metaverse” has lost some of its initial hype, the pursuit of new hardware form factors beyond smartphones and tablets continues. Companies in this space are creating exciting possibilities for immersive experiences.

Lastly, we’re looking at advancements in scientific instrumentation, particularly for healthcare. As Al transforms drug development, these tools provide the data needed to power Al models, accelerating the pace of medical innovation.