Our Thesis

We now live in the post-COVID era but are facing a prolonged downturn that presents every industry with a new set of unprecedented challenges.

As tech investors, we position ourselves at the forefront of emerging trends and changes in the market. Still, the current environment has forced us to question how the world’s appetite for (and consumption of) products and services has changed, and critically, which of these national and global shifts present opportunities for the next generation of long-term businesses

We seek to find, fund, and support the world’s most ambitious entrepreneurs. For 2024 and beyond, we’re honing in on the industries we predict will see some of the most significant and permanent shifts in the coming decade. We’re looking to help scale and provide funding support to the next generation of technology entrepreneurs that are maximising the opportunities that the new world presents.

Our Sectors

Deep Tech

The exponential growth in data volume, propelled by technological advances has ushered in an era of unprecedented opportunities in deep tech. This goes beyond conventional AI and ML algorithms; it encompasses a spectrum that includes groundbreaking scientific research and innovations, such as next-generation nuclear reactors and advanced material science. We see the potential for transformative impact and substantial value creation in sectors ranging from energy to healthcare, and beyond.

Net Zero Tech

As global efforts towards a net zero future align across developed and emerging markets, a ripe landscape for innovation and entrepreneurship emerges. This shift presents significant opportunities for startups offering unique solutions in renewable energy, sustainable transport, carbon capture, and smart urban infrastructure.

Health Tech

As aging populations become more prevalent in developed countries, and developing countries transform their health systems, there is an urgent need for breakthrough healthcare solutions. These innovations are key to easing the strain on public health systems and government finances, while simultaneously enhancing patient outcomes. This dynamic presents a vital opportunity for startups focused on pioneering healthcare technologies and services.

We believe in mission-driven founders with an irrational commitment to their cause based in the UK, Europe or USA. The best startups require patience as the technology is developed and matured, and markets are built. Our focus is on Deep Tech, Net Zero Tech & Health Tech. These are startups that combine science and engineering to tackle the toughest and potentially most lucrative technical challenges facing the world.

Our Strategy

At 7startup, we offer more than just growth capital; we deliver hands-on support in Saudi Arabia and across the Middle East, helping our portfolio companies secure valuable contracts. Our approach is rooted in the insights gained from challenging experiences and led by experienced leaders. We are committed to partnering with entrepreneurs, guiding them in building enduring and successful companies.

Seed to Series B

Our Fundraising Support service helps showcase your venture to investors and advisors, off the back of relationships initiated and cultivated by 7startup. Following a thorough audit to get everything in order before we start approaching investors, preemptively addressing red flags before investors see them. These startups typically generate £500k – £5m in ARR and are looking to raise between £1m and £50m.

Investment

Our private investment club is an agile investment partnership with HNWI, Angels, Family Offices, VCs and PE firms. We pull together on a set of common goals and common values; our members are partners who have worked together for some time. Our relationships are everything. We look for the next trend and validation, growth, differentiation, capital efficiency and a large market size.

Middle East Go-to-Market

7startup acts as a vital connector for post-revenue startups to the rapidly growing industrial and technological landscape in Saudi Arabia. With our presence in Saudi Arabia and other regions, we facilitate key introductions between founders and investors, leaders, and influential decision-makers. Our goal is to streamline and mitigate the risks of entering the Saudi market by securing proof-of-concept and partnership agreements.

We invest in the infrastructure that enables the digitalisation of every industry. Guiding our entrepreneurs with expertise and capital – helping their company to grow and fulfil its promises.

Scalable and transformational companies are those worth investing in. These desired qualities in a company can be difficult to find and often come at a steep price in later stages of investment. Over the last decade, the B2B category has come to epitomise value for investors; these types of startups offer high returns with low risk; superior to those of comparable B2C companies.We aim for higher quality with less capital and strive to take bold risks early with our founders and co-investors. Not all Deep Tech startups require “big” dollars, and in our experience, too much capital early on can constrain creativity.

We know great companies take time to build, and we don’t mind getting our hands dirty. Actually, we enjoy the journey. We start small so that we can go big – because we know what it takes.

Long-Term View

For a decade now, growth has been seen as what defines success for the majority of technology companies. Moore’s law gave us unprecedented levels of computing power which led to winner-take-all markets. As a result, entrepreneurs adopted this ideology and created new technologies, creating an era where online communities change how we live and work.

Longevity in business creation is taken for granted – no one sets out to create a company with an expiration date. That said, very few early-stage companies think critically about the principles needed to survive. Going forward we believe it is essential that we do so.

A successful startup is driven by its founder, their vision, and the core team. Most of the key decisions are made by a small group of individuals who have the will and drive to steer the company through the early stages. In backing any company, we’re acutely aware of founders’ mindsets and rally behind those that take responsibility for what they do. We focus on endurance as a fundamental design principle because we believe it creates moats in every business; this helps to make their product or service better than most others while avoiding ethical problems caused when they don’t think about longevity first thing before taking action.

Invest broadly yet remain focused

Net Zero Tech

The effects of climate change have been felt acutely in recent years; heat waves, floods and storms with increased frequency and severity. We are, however, optimistic over the long-term on the prospect of viable solutions to mitigate and reverse climate change given the explosion of talented, driven founders executing on ambitious visions in this space. Our focus is on investing in foundational technologies such as zero carbon energy generation, transmission and storage.

While growth in Net Zero Tech over the past five years has been remarkable, the potential for growth in this sector remains vast and largely untapped. Net Zero Tech startups may require substantial capital investments initially. The upshot being they are somewhat de-risked once their solutions are proven viable as the market is so large and their value-add so clearly demonstrable that they can relatively easily acquire new clients.

We believe this assumption is incorrect

Many Net Zero Tech companies in particular are extremely capital efficient and can go from unknown to massively successful without lots of growth capital. This means late-stage valuations will stay high, and there is only so much money they can use. This results in sustained high valuations in late stages, limiting the amount of capital they can effectively utilize. In contrast to public markets, where shares of early-stage startups are more accessible and affordable, acquiring stakes in later-stage Net Zero companies is challenging. A liquid market for fractional ownership in these companies is scarce, and early investors can often sell their shares at a premium.

Our approach in the Net Zero Tech space, therefore, is tailored to recognize these unique market dynamics, focusing on sustainable growth, long-term value, and the transformative impact on the environment and society.

Deep Tech

If you’re a technical founder who’s struggled to explain your tech and vision to investors, we’re the right partner for you. Our involvement evolves to help refine your product-market fit and begin laying the groundwork for scalable growth.

Moving into the Series A phase, the narrative shifts towards scaling your operations and expanding market reach. At this stage, while the technological innovation remains central, we also emphasize building robust sales pipelines, solidifying customer acquisition strategies, and scaling your business operations. We work closely with you to navigate the complexities of rapid growth, ensuring that the original vision and technological integrity are maintained while scaling effectively.

We look for diverse startups solving these types of technically complex challenges. From developing safe, net-zero energy solutions to planning and implementing the future of infrastructure, these startups employ precision engineering, bleeding-edge scientific discoveries, and visionary entrepreneurship to reshape the world.

We define deep technology as the integration of visionary ambition and pragmatic execution. Deep Tech ventures take on some of the world’s greatest challenges while delivering commercially viable results all along the way – including transforming entire markets with extensive research and development while creating whole new industries themselves – by meeting specific criteria:

They are problem oriented. Deep tech ventures aim to solve large and fundamental challenges to society. For example, 97% of deep tech ventures we have studied contribute to meeting at least one of the United Nations’ Sustainable Development Goals.
They look at using the best existing or emerging technologies to solve the problem at hand. 96% of deep tech ventures use at least two technologies, and 66% use more than one advanced technology. This enables them to generate distinctive intellectual property. About 70% of deep tech ventures own patents related to their products or services.
They have shifted from digital innovation—based on bits—to digital and physical innovation—based on bits and atoms. About 83% of deep tech ventures are designing and building a physical product. Their abilities are focused on the use of artificial intelligence, machine learning, and advanced computation to break through barriers in physics, chemistry, and biology.

”While 2023 has been heralded as the year of deep tech, other sectors are becoming saturated. We’ve seen venture capital investment in deep tech up from 10% to 20% of venture capital funds deployed in the last 10 years with forecast investment in Deep Tech growing to over $200 billion in 2025. Deep Tech is on the rise and appears to have more downturn resiliency than any industry, and is currently one of the strongest investment opportunities available.” – Amit Khanna, CEO, 7startup