Supported by the Department for Science, Innovation and Technology (DSIT), this new programme is designed to address the long-standing challenge of how the gap between groundbreaking UK research can be bridged into scalable, market-ready ventures.

On the 22nd January 2025, I attending the Fellowship’s launch event to learn more about the Fellowship and the Royal Academy of Engineering’s ‘State of UK Deep Tech 2024’ report, where the event provided a platform for speakers to talk about the challenges faced by the UKs deeptech sector and how this demonstrates the need for domestic training and expertise to boost investment and build on the opportunity that is presented by deeptech.

The gap in UK investment – opportunities and challenges

The UK has bustling research institutions and a vibrant deep tech ecosystem, with four of the top 10 universities in the world being in the UK. However, transcending that gap between implementing the UKs cutting-edge resources into a successful business model remains a challenge. The State of UK Deep Tech 2024 report reveals that while UK deep tech companies have consistently attracted over £5 billion annually in venture capital since 2020, the country struggles to scale its startups to the level of its global competitors, the US for example, which Science Minister Lord Vallance noted: “If you did an analogy with the US and asked, ‘where are we today in terms of big company formation and wealth creation from university research?’ we are probably 20 to 40 times lower than we should be. So we know there’s a big opportunity gap.”

Deeptech and life sciences ventures have high capital requirements and long development cycles, so navigating this requires a specialised kind of investor – one who understands not just the science but also the commercial and regulatory complexities. The right investor needs to understand patient capital, technical expertise, and have long-term commitment. As the minister emphasised: “It’s scientifically complicated, it’s long, and you’re only going to start making money much later. That requires a particular type of thinking.”

This is where the STVCF aims to make a difference.

The fellowship’s vision

The STVCF is specifically designed to cultivate a new generation of venture capital (VC) leaders by equipping them with the skills, networks, and knowledge necessary to tackle these challenges head-on. The programme combines technical training with practical experience, which is no small task. But as the Royal Academy of Engineering’s CEO, Hayaatun Sillem, emphasised: “These sectors offer extraordinary opportunities to solve or address some of society’s most pressing issues, from advancing AI for productivity to creating quantum technologies that support security.”

The fellowship is structured in two key parts:

• Foundational content: delivered by Imperial College’s Business School faculty and covering four core modules, the sessions tackle topics such as raising and structuring VC funds, sourcing and investing in startups, portfolio management, and scaling ventures. Participants benefit from case studies, panel discussions, and mentorship.
• Experiential learning: the second phase includes site visits to key technology hubs outside London, group projects, and networking opportunities. These activities deepen participants’ understanding of emerging technologies and the ecosystems that support them.

Why do we need the programme now?

The timing of the fellowship is no coincidence. The State of UK Deep Tech 2024 report shows that the importance of sectors like AI, quantum technologies, and engineering biology, are growing, and they are areas that align with government priorities. This isn’t just important for the UK’s competitiveness, but it is also central to addressing global challenges such as climate change and healthcare innovation.

However, the report also points to barriers such as a lack of affordable infrastructure and a small pool of investors with the technical expertise to guide these ventures. “It’s scientifically complicated, it’s long, and you’re only going to start making money much later. That requires a particular type of thinking,” said Lord Vallance. “If we’re going to have growth in the UK and some degree of strategic autonomy … it’s really important that those pieces come into this world. Finance is a key part of what’s going to make this work, but so is regulation, procurement, and skills. That’s why this programme is so important.”

Building a stronger ecosystem

The Fellowship initiative aims to reduce the UK’s reliance on foreign investors, who accounted for 32.5% of deep tech deals in 2024, and ensure that the economic and societal benefits of innovation remain within the country. However, the programme is also designed to strengthen inclusivity in the investment community, as Sillem emphasised: “One of our values [at the academy] is collaboration first. We know we can’t do anything important by ourselves, working with partners is the only way to deliver meaningful impact.” By welcoming applicants from underrepresented groups and prioritising regional outreach, the programme aims to create a national ecosystem.

A brighter future for UK deep tech

The fellowship’s ultimate goal is to close the 20-to-40-fold gap between the UK and the US in scaling research-based startups, and to build a robust pipeline of talent capable of driving transformative innovation. This initiative has the potential to “foster a more resilient, inclusive, and impactful investment ecosystem,” said Sillem.

By investing in the development of its venture capital leaders, the UK is positioning itself to not only remain competitive on the global stage but also to address critical societal challenges through innovation. “The future is in your hands. What you do and how you do it will help shape [these opportunities], and there is a massive opportunity.”

Ending, Lord Vallance quipped that the first cohort of STVCF fellows carries the weight of these expectations and the immense potential to redefine the UK’s innovation economy. Though the message was said in jest, the point remains very real – the UK is not only trying to keep pace with global competitors, it is also aspiring to shape the future of deeptech and life sciences.