Show notes (AI generated, ‘natch!)

In this episode: Anthony Miller introduces the BritChips Podcast and frames IP Group as a later-stage investor than Parkwalk Advisors, with both firms sitting under the same parent structure.

Lee Thornton explains that Parkwalk uses EIS retail capital for very early-stage university spinouts, while IP Group also deploys balance sheet capital and third-party scale-up funds for later rounds.

The conversation breaks down typical cheque sizes:

* Parkwalk can write smaller cheques and also support larger ones, often starting around half a million and reaching several millions

* IP Group balance sheet capital typically starts around three million and can go up to around ten million

* Scale-up funds can provide much larger amounts when companies need more capital

Lee says IP Group focuses on science and technology businesses with defensible, order of magnitude better propositions, especially in future compute and silicon.

They discuss the importance of flexibility across stages, including situations where Parkwalk and IP Group co-invest in the same company.

Lee shares that he came into semiconductor investing from a chemistry and investing background, not from chip design, and that he sources deals through universities, tech transfer offices, co-investors, and industry networks.

A major theme is fit: Lee stresses that investors are not interchangeable and that founders do better when they understand what a specific fund actually invests in.

He says the strongest pitches show evidence, not just ideas:

* proof the technology works

* peer-reviewed research or patents

* third-party validation from corporates or customers

* a clear reason the opportunity is commercially meaningful

The discussion goes deep on conviction:

* conviction in the technology

* conviction in the founding team

* conviction that the business can get to an exit

Lee explains that most first meetings involve one or two founders, though he likes to see a broader senior team of three to four people where possible.

Exit planning comes up early. Lee wants founders to think from day one about how investors get their money back, whether through acquisition, IPO, or another liquidity event.

He says the firm is patient on timing, with exits sometimes taking five to ten years, often ten to fifteen years, and occasionally longer.

The conversation closes on the reality of venture investing in deep tech: most investments fail, the winners must cover the losses, and the goal is to recycle capital into the next generation of companies.

Timestamps (approx)

00:00 – Anthony introduces the podcast and today’s guest, Dr. Lee Thornton

01:12 – How IP Group is structured across multiple funding stages

02:53 – Parkwalk, balance sheet capital, and scale-up funds

05:32 – Typical cheque sizes and why flexibility matters

06:46 – Why deep tech funding labels like Series A and B can be messy

07:48 – Co-investing from different parts of the group in the same company

08:54 – How Lee came into semiconductor investing without a chip background

10:06 – Where deal flow comes from across universities and networks

11:22 – Why investors are not all the same

12:34 – What impresses Lee when founders show they understand his portfolio

13:41 – The gap between first-time fundraisers and companies with traction

14:59 – Evidence, patents, papers, and proof of commercial value

16:41 – What IP Group really wants from a pitch

17:16 – Conviction as a two-sided test: technology and team

20:29 – What Lee wants to see in the founding team

21:43 – Team size and seniority at the first cheque stage

23:48 – Why exit planning should be baked in from the beginning

24:57 – How long IP Group is willing to hold investments

26:19 – Why deep tech and university spinouts take longer to mature

27:32 – IPOs, acquisitions, and what actually happens at exit

29:38 – Why most investments fail and how winners have to compensate

30:40 – Handling difficult conversations when a company is not succeeding

31:48 – What happens when a founder wants to start again after a setback

33:31 – When a business is not growing fast enough but is still viable

34:44 – Lee names companies he is excited about in his portfolio

35:50 – Best advice for founders raising money and pitching investors

38:22 – Why predicting the future is hard, but investing in it is the job

39:26 – Closing thoughts on the future of UK semiconductors and deep tech

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