Sunday, July 14, 2024

Why infrastructure investing in AI is ‘like selling shovels to gold miners’

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British start-ups in the artificial intelligence and tech space are burgeoning, giving fund managers and investors plenty of opportunities to back British enterprises, venture capital trust managers have said.

Simon King, fund manager of the Octopus Future Generations VCT, said despite wider concerns over the UK economy, grassroots businesses were burgeoning, particularly in the technology space. 

He said: “The UK remains the start-up capital of Europe with nearly twice as many unicorns as Germany (the next in line) according to the 2022 State of European Tech report.

Infrastructure investing in this space is like selling shovels to gold miners.

Simon King, Octopus Investments

“We also have an amazing set of educational institutions that attract talent and companies from around the world; Amazon, Apple and Microsoft all have research centres in Cambridge and Meta and Google have them in London.

“Our universities are also creating hundreds of spin-outs each year across the UK.”

He said that, as a result of this growth, the team was “seeing great opportunities from across the UK” and from European companies that have set up company offices in the UK to take advantage of the skilled people they can find here.

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