Season 6, Post 7: Red-hot innovation
It was standing room only when your author and almost 200 others descended on London’s trendy Ham Yard Hotel to hear all about what’s hot in the world of technology. Molten Ventures, a leading UK venture capital firm, hosted its annual investor day where attendees had the opportunity to hear 15-minute presentations from different entrepreneurs. There are few better opportunities to learn about true innovation.
Passion and a genuine intent to disrupt established ways of doing business were commonalities across the diverse pitches we heard. The importance of being willing to fail-fast and learn from such failings was stressed constantly too. The banking industry represents one particularly fertile area for innovation. We were told on several occasions how legacy banking systems were typically localised and siloed. Most financial services businesses need a modern tech stack, but few have it. This creates clear opportunities in areas such as enabling real-time payments and reducing fraud.
Generative AI solutions will certainly help make a difference in an area such as banking. We were reminded though that with over 80% of the world’s data being unstructured (or not ordered and accessible), almost no industry will remain untouched by algorithms that can help users access what they need. Security and transparency were stressed as crucial considerations. Users need to be able to trust data sources and know that firm-specific information will not be used to train external models.
Hubris around AI was generally downplayed. We heard no “this time it’s different” pitches. Rather, we were reminded that AI was not a new technology. Most businesses (and consumers) remain on a journey, one which will gradually allow algorithms to develop capabilities that become increasingly close to those of humans. We were encouraged to hear of its practical deployment in improving outcomes in fields as diverse as drones, thermal imaging, precision medicine and cancer detection. It’s hard not to be optimistic about the future.
13 February 2024
The above does not constitute investment advice and is the sole opinion of the author at the time of publication. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.
Click here to view all Blog posts.
Alex Gunz, Fund Manager
The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital LLP believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital LLP, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital LLP is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital LLP disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document.
The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital LLP’s prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital LLP’s prior written consent.
Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
email [email protected]
Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority
Heptagon Capital Limited is licenced to conduct investment services by the Malta Financial Services Authority.
GET THE UPDATES
Sign up to our monthly email newsletter for the latest fund updates, webcasts and insights.