The Rundown: Edition 62 – We’ve got a new section
Welcome to The Rundown, a snapshot of news, views and intel from the fast-growth tech and investment scene, brought to you by FieldHouse Associates.
Remember when we teased a new section dedicated to the policy developments affecting the technology and investment ecosystem? In The Rundown: Edition 60, to be exact. Well, today’s launch day. Keep scrolling to check out ‘Policy Pulse’.
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OpenAI agent hacks Australian Government
The tech giant admitted that an AI agent went rogue, hacked into an Australian Government website in June, and accessed private data. This breach has sparked backlash after OpenAI only reported it to a generic Australian Government inbox earlier this month. BBC
Business leaders warn against raising Capital Gains Tax
Entrepreneurs have warned the Government against plans to equalise Capital Gains Tax with Income Tax, saying the move would deter entrepreneurs from starting new businesses and increase departures from the UK. Telegraph
Phoenix Court wins NatWest backing in VC “watershed”
The high street lender has made its first VC investment, backing Phoenix Court alongside the British Business Bank (BBB) and M&G. £50 million was committed by the BBB, with Saul Klein, Co-founder of Phoenix Court, hoping the money will crowd in further domestic capital. Times
China and the US discuss AI safety
US President Donald Trump and Chinese President Xi Jinping met in Washington this week to discuss AI safety and trade. President Xi remarked that the US had the “capability and responsibility to manage AI for good”. FT
Basecamp Research raises $140m Series C
Basecamp Research, which uses AI to develop new medicines, has raised $140 million in a Series C round led by S32, with further investment from Nvidia’s venture arm, NVentures, Anthropic’s Anthology Fund, Menlo Ventures, the NATO Innovation Fund, Rockefeller, European Tech Collective and the UK Government’s Sovereign AI Fund. Reuters
Germany’s DTCP nears €500m defence fund target
German growth investor DTCP has announced the first close of its inaugural defence fund at €455 million, nearing its €500 million target. The fund aims to back companies with an average investment of €20 million, focusing on Europe and NATO-allied countries. Sifted
Cybersecurity firm Outerlimit secures £12m
Outerlimit, a decentralised security and authorisation layer built for agentic AI, has raised £12 million in pre-seed funding and emerged from stealth. Investors in the round included AlbionVC, Evolution Equity Partners and Crane Venture Partners. Soapbox.vc
Magic AI fitness mirror bags £8m
Magic AI, which has sold more than 20,000 of its £999 smart mirrors in the UK and US, has raised £8 million, led by Beringea, with further backing from IW Capital. It will use the funds to boost growth in the US. Times
The £80bn reason to address the AI skills shortage
A new report by Learning and Work Institute and the Rigby Foundation reveals an £80 billion opportunity for the UK economy by 2035 if we bridge the AI skills gap. Steve Rigby, CEO of Rigby Group, argues that closing this skills gap is an urgent national priority. City AM
Germany’s stalling economic agenda
Following heavy state election defeats, Chancellor Friedrich Merz faces intense pressure to dilute his economic reforms. IESE Business School Professor Martin Jacob warns that renegotiating these plans will delay economic growth and create uncertainty for domestic and international investors. Reuters
PISCES debut for HR tech Veremark
Veremark is leveraging the London Stock Exchange’s PISCES market to let long-term staff and early investors trade £6-8 million in shares. David Callaghan, CEO and Co-founder of Veremark, says the initiative delivers on promises to staff and creates a repeatable model for strategic financing. Times
A table for two, please
In a breakfast interview with Tom Nugent, Duncan Johnson, CEO of Northern Gritstone, discussed the growth of the North of England’s tech ecosystem, the investment firm’s global expansion, and changing attitudes toward startup exits. Sifted
NATO’s push for unjammable defence
Heavy reliance on GPS leaves military operations vulnerable to invisible electronic warfare like jamming and spoofing, according to Dr Tanya Suarez, CEO of IoT Tribe and Lead of Janus Allies. In response, NATO is deploying unjammable, non-satellite navigation alternatives to ensure systems keep running when GPS fails. Aerospace Global News
With Parliament in recess, party conference season is putting future policy priorities in focus. At the Liberal Democrat conference, members backed a motion on AI sovereignty, calling for stronger support for UK startups, greater scrutiny of frontier AI and a more strategic approach to data centres. Labour’s conference begins in Liverpool on Sunday, with attention turning to the Government’s growth plans and the Autumn Budget – which is right around the corner on 28th October.
RAF unveils satellite-defence squadron
The RAF has launched its first squadron dedicated to countering threats to UK satellites. Unlike existing units that monitor and warn of threats, it can act against hostile activity using capabilities including electronic warfare. Ministry of Defence
£20m boost to establish regulatory science centres
The MHRA has launched a £20 million funding opportunity for four centres of excellence in regulatory science across the UK. They will bring researchers, industry and regulators together to develop ways to assess emerging healthcare technologies. Medicines and Healthcare products Regulatory Agency
UK sparks a new grid partnership
The UK and Philippines have agreed a refreshed programme of cooperation across energy, infrastructure, agriculture and economic development, with smart grids, microgrids and trade digitalisation among the areas under discussion. Department for Business and Trade
It’s been a busy week for President Trump. And as (probably) the most powerful man in the world, everything he does affects everything we do (we’ll get to the tech link, promise). Trump started the week by banning CNN, MS NOW and POLITICO from the White House grounds, a move which led the publications to sue the president. It also led to a Trump press junket with no audio, as the TV pool suspended coverage. That was just the start of the drama. Trump is also considering a 90-day ban on US diesel exports. Fuel prices in Europe have jumped because of the speculation. If it happens, it would be “catastrophic” for the UK, according to experts, as the nation relies on the US for nearly a third of its diesel imports. Good luck getting to work now. That’s a nice callback to last week’s edition of The Rundown, if we do say so ourselves. After diesel, the president moved on to China, with a state visit rolled out for Chinese President Xi Jinping. This followed the lower-profile chat with Prime Minister Andy Burnham – who “survived” his first meeting with the leader of the free world. Is that still America’s head of state? Some would say ‘no’, but let’s discuss. To round off a packed week, Trump ordered diplomats within the State Department’s international organisations to replace the term “artificial intelligence” with “super intelligence”. His reasoning? “The use of the word artificial makes intelligence fake, it makes it sound fake and it is not fake. It’s actually amazing.” And breathe…
Time to venture into safer waters. Let’s talk about music. No, not that recent controversy. Who’s an artist who you’d pay exorbitant amounts of money to see? Well, imagine if it wouldn’t break the bank to see them perform – even those who no longer roam the earthly planes. Well, UK-based startup Unit1 has raised nearly £15 million to make this a reality. Led by Barney Wragg, former chief exec of Andrew Lloyd Webber’s entertainment group, Unit1 plans to stage concerts by “hyper-realistic” digital avatars of living artists who are no longer touring, and to recreate performances by deceased musicians. While performers including Sting don’t feel threatened by AI, and Dr Dre claims that musicians against the tech are those who “have trouble creating”, not everyone is a fan of AI in music. Some musicians are suing AI music platforms, and Spotify is labelling AI-generated artists in a crackdown on AI slop. What are your thoughts on all of this?