Robotics in AgriTech, a MedTech app to support doctors through live procedures, and satellite-based software for real-time monitoring. That’s a snapshot of Q2 funding rounds at Axial Capital. Those three examples are growth companies we agreed to invest into through the second quarter of the year, and in particular with a cross-border angle to the transaction in order to provide greater exposure – and greater market access – to truly enhance the value of the funding round.
One thing the closed borders of the pandemic-world hasn’t been able to stifle is the free flow of information and capital. With our investment focus spanning beyond just the UK/EU, to include North America and the ASEAN regions, the ability for us to invest and to provide access to strategic partnerships in cross-border jurisdictions has in fact become better than ever due to the pandemic. This has become super effective in accelerating the expansion of high-growth companies.
The markets differ in dynamics and investment appetite of course. Where London has a high proportion of scaleup companies trying hard to get in front of VCs, Canada has an active and diverse investment base to support a proportionately higher number of those early stage companies. Where Western EU states have a mature base of investment funds, Eastern EU states continue to produce a pool of world class, scalable startups. This again is where a cross-border focus makes more sense to us when getting behind founders of high-growth companies.
The year ahead might (and hopefully will!) result in greater freedoms to travel and to meet in more personal settings than a video call, which we expect will enhance those cross-border relationships ever further. A positive outlook as the UK Autumn sets in.