Tech

lark-optics-is-targeting-your-retinas-for-ar-without-nausea-and-other-sickness

Lark Optics is targeting your retinas for AR without nausea and other sickness

This story is syndicated from the premium edition of PreSeed Now, a newsletter that digs into the product, market, and founder story of UK-founded startups so you can understand how they fit into what’s happening in the wider world and startup ecosystem.

Whether you believe it’s the future of everything, or just a useful tool that will be part of the mix of tech we regularly use a few years from now, augmented reality is a rapidly developing field with one major drawback – like VR, it can leave you feeling sick.

For example, US soldiers who tried Microsoft’s HoloLens goggles last year suffered “‘mission-affecting physical impairments’ including headaches, eyestrain and nausea,” Bloomberg reported.

While the technology could “bring net economic benefits of $1.5 trillion by 2030” according to PwC, this sickness is a massive inhibitor to the growth of AR and VR.

One startup looking to tackle the problem is Cambridge-based Lark Optics, which has developed a way of bypassing the issues that cause these problems.

“In the real world, we perceive depth by our eyes rotating and focusing. Two different cues need to work in harmony. However, in all existing AR glasses, these cues fundamentally mismatch,” explains Lark Optics CEO Pawan Shrestha.

Having to focus on a ‘virtual screen’ on augmented reality glasses, means users have to switch focus between the real world and the augmented one. This depth mismatch causes physical discomfort and conditions like nausea, dizziness, eyestrain, and headaches.

What Lark Optics does differently, Shrestha says, is it projects the augmented reality image onto the user’s retina. This means the AR is always in focus no matter what your eyes do to adjust to the real world around you.

So far the startup has developed a proof of concept and is now iterating to refine its demonstrator model. Shrestha says they conducted two successful user studies with their proof of concept; one in their own lab and another with an external partner he prefers not to name.

When the tech is ready, they want to use a fabless model for producing the components they design, which they will then sell to original equipment manufacturers who make AR headsets.

Given they’re addressing such a fundamental challenge to the mass adoption of AR, it’s unsurprising that other companies are tackling it in other ways (more on that below). But Shrestha says his startup’s approach is the most efficient in terms of processing power and battery power, and doesn’t affect the user’s field of vision.

Shrestha grew up in rural Nepal (“really rural… I was nearly nine years old before I saw electric lights”). He says his parents’ enthusiasm for his education eventually led him to New Zealand where he obtained a masters degree in Electronics Engineering from the University of Waikato.

Keen to develop technology he could commercialise, he says he developed an interferometer. While that venture didn’t work out, his work led him on to a PhD from the University of Cambridge, where he spotted the commercial potential of a new approach to AR displays.

“It was scientifically challenging, but  it was also something that could touch the lives of many, many people,” he says.

Shrestha co-founded Lark Optics (which was previously known as AR-X Photonics) with his friend Xin Chang, and Daping Chu who previously oversaw the PhD work of Shrestha and Chang. The trio have been working together for around a decade but only got started with Lark Optics in earnest last year,

Shrestha says this week they have been joined by a new recruit, Andreas Georgiou, who previously worked at Microsoft as a principal researcher in the field of optical engineering.

The Lark Optics team (L-R): Weijie Wu, Dr Pawan Kumar Shrestha, Professor Daping Chu, Dr Andreas Georgiou, Dr Xin Chang

Perhaps unsurprisingly, Shrestha says being based in Cambridge is a big benefit to them, with a community of experienced advisers around them, and access to relevant investors. He is particularly inspired by the progress made by Micro LED tech startup Porotech, which has raised a total of $26.1 million to date.

And Shrestha has warm words for the Royal Academy of Engineering’s Enterprise Fellowship, of which he is a part. This provides up to £75,000 in equity-free funding to cover salary and business costs, along with mentoring, training and coaching. This was what allowed him to get started on developing Lark Optics as a business.

Lark Optics itself raised a pre-seed round of £210,000 in October last year, Shrestha says, and will be raising a seed round in Q2 this year.

As mentioned above, others are tackling the problem of AR sickness in different ways. LetinAR uses a ‘pin mirror’ method, Kura Technologies has developed a ‘structured geometric waveguide eyepiece’, while VividQ “compute[s] holograms in real-time on low power devices and integrate[s] them with off-the-shelf display hardware.” 

Another company, SeeReal develops holography-based solutions to address depth issues in 3D displays.

But Shrestha says these rival technologies either require a very high level of data throughput, with a related computational and battery power overhead, or require very high resolution displays. And while some techniques decouple the AR display from the real world like Lark Optics does, Shrestha says they are “like looking through a chicken fence.

“We solved the problem without getting a significant penalty on processing power or battery power, or artefacts. So that’s why I think our approach is the best.”

Lark Optics’ ambition is to become established as the best optics for AR, VR, and mixed reality glasses.

“We want to realise the full potential of AR and VR. Now we have AR and VR you can wear for 20 minutes or 30 minutes. We want to make it feel as natural to look at real objects, VR ,or AR, and allow people to use it for all-day, everyday use.”

Shrestha sees the biggest challenge to achieving this is being able to recruit the right people in what is quite a specialised field. But he’s optimistic that attracting just one or two high-level people will end up attracting more, and the endorsement of a good seed round raise in the coming months won’t hurt either.

AR, VR, and MR has been massively hyped in recent years but there have been questions over how much of a future it has. Investor disquiet over Meta’s huge spending in the ‘metaverse’ space, and Microsoft’s job cuts in its HoloLens division as it struggles to turn it into a viable business, show that there’s no straight line from here to a future where this tech is widely used.

But that said, the current jitters of the public markets over stock prices and tech company spending isn’t an end for AR, VR, and MR at all. Apple’s first headset is on the horizon, which will no doubt spin up another wave of interest in the space (although the latest report says it’s been delayed two months, until June). 

If technology like Lark Optics’ can help prepare AR, VR, and MR for the mainstream, the startup could be well positioned to reap the rewards.

The article you just read is from the premium edition of PreSeed Now. This is a newsletter that digs into the product, market, and story of startups that were founded in the UK. The goal is to help you understand how these businesses fit into what’s happening in the wider world and startup ecosystem.

Lark Optics is targeting your retinas for AR without nausea and other sickness Read More »

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Can data-driven research show us how to be happy?

Ioanna Lykiardopoulou

Story by

Ioanna Lykiardopoulou

Ioanna is a writer at SHIFT. She likes the transition from old to modern, and she’s all about shifting perspectives. Ioanna is a writer at SHIFT. She likes the transition from old to modern, and she’s all about shifting perspectives.

What is happiness? And how can we be happy? These questions are integral to the human experience, but their answers can be elusive. We can apply several perspectives to approach them, through philosophy or psychology, for instance. We can also use our personal view of our feelings and goals as we navigate through life. But can we bring a scientific approach to happiness?

Meik Wiking, CEO of the Happiness Research Institute in Copenhagen, believes we can. The institute combines qualitative and quantitative methods to provide insights on well-being, happiness, and the quality of life.

Its mission? To inform decision-makers in companies and communities of the causes and effects of happiness, and, in turn, make subjective well-being part of the public policy debate on a local, national, and international level.

We caught up with Meik Wiking at TNW 2022 and asked him the big questions around happiness. If you’d like to get his insights in full, check out the video embedded at the top of this article. Alternatively, you can watch it right here.

“Happiness is a dish with many different ingredients on it,” Wiking told us. “It’s about experiencing positive emotions on a daily basis, being satisfied with life overall, and having a strong sense of purpose or meaning.”

Above all, happiness is an emotion, Wiking explained, and as such it’s subjective. This means that individual perceptions of it vary, making each person the only judgeof whether they’re happy or not.

So what can we do to cultivate this emotion and be happier? Wiking suggests there’s an ABC in happiness as well. A stands for “act,” B stands for “belong,” and C stands for “commit.” In other words, these are the three steps: doing something active, doing something together with other people, and doing something meaningful.

But is happiness only a matter of perception or do external circumstances also play a role? And is it possible for the whole world to be happier?

Click here to get his answers and watch the full interview.

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Can data-driven research show us how to be happy? Read More »

uk-at-risk-of-lagging-behind-eu-and-us-in-clean-energy-investment-race

UK at risk of lagging behind EU and US in clean energy investment race

UK at risk of lagging behind EU and US in clean energy investment race

Ioanna Lykiardopoulou

Story by

Ioanna Lykiardopoulou

Ioanna is a writer at SHIFT. She likes the transition from old to modern, and she’s all about shifting perspectives. Ioanna is a writer at SHIFT. She likes the transition from old to modern, and she’s all about shifting perspectives.

Although the UK has set out ambitious clean energy targets, it risks lagging behind the US and the EU in attracting the required investments, two of the country’s energy trade organisations have warned.

Ahead of the Chancellor’s Spring Budget next month, Energy UK and Renewable UK have published two separate reports, calling on the government to implement measures and rule changes that will enable the UK to attract vital private investment in renewables.

“The renewable energy sector is facing a perfect storm this year.

According to Energy UK’s report, investment in low-carbon electricity generation “has deteriorated significantly” in the past months, owing to soaring inflation, increasing interest rates, supply chain difficulties, policy uncertainty, and “poorly designed” windfall taxes that presently “favor oil and gas extraction.”

The trade organisation estimates that an additional investment of £500 billion would be needed between now and 2050 to meet the UK’s Net Zero goals. But without government action, it expects a £62 billion investment loss by 2030. This would translate to a shortfall of 54GW of potential wind and solar capacity — enough electricity to power every home in the UK.

“The UK is in increasing danger of undermining its own ambitions and failing to deliver on its commitments, “Emma Pinchbeck, Energy UK’s CEO, said. “In many ways, the UK has led the way in the transition to clean energy — witness our world-leading offshore wind industry — but we risk squandering this position and driving the investment that we need elsewhere.”

The fierce global competition for investment, skills, and supply chains was also cited by Renewable UK’s Executive Director of Policy Ana Musat, who highlighted that “the US and the EU are in a race to offer incentives to clean energy investors.”

Both trade organizations are calling for measures such as implementation of more attractive regulations, faster project planning, more sustainable renewable electricity prices, and new fiscal measures policies like reforming the windfall tax and respective tax reliefs.

“We are at a pivotal point right now with other countries actively trying to attract the same companies and investors and it would be unforgivably complacent to think that we don’t need to do the same,” Pinchbeck noted. “This is a once-in-a-generation opportunity and if we don’t seize it now, we will miss out not just on cheaper, cleaner energy but on the huge boost to our economy such investment will bring in terms of growth, jobs and other benefits.”

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EU gets closer to blockbuster investment into domestic semiconductor chip production

EU gets closer to blockbuster investment into domestic semiconductor chip production

Ioanna Lykiardopoulou

Story by

Ioanna Lykiardopoulou

Ioanna is a writer at SHIFT. She likes the transition from old to modern, and she’s all about shifting perspectives. Ioanna is a writer at SHIFT. She likes the transition from old to modern, and she’s all about shifting perspectives.

According to EU data, numerous vital tech sectors in the bloc have been suffering from supply shortages in semiconductor chips, mainly as a result of the European dependency on imports from a limited number of companies and countries. To address this issue, the union aims to boost its domestic industry by implementing new legislation.

On Wednesday, the European Parliament adopted its position on two proposed draft bills: the Chips Act and the Chips Joint Undertaking.

On the Chips Act, MEPs endorsed the text put forward by the Industry Committee and expressed their support of its three main measures:

  1. Reinforcing technological capacity and innovation and attracting talent.
  2. Encouraging investment and increasing production capacity.
  3. Implementing a crisis response mechanism, enabling the Commission to monitor semiconductor supply, assess risks, and anticipate shortages.

Commenting on the Chips Act, rapporteur Dan Nica said that it should establish Europe as a “key player” in the global semiconductor market. “Not only does the budget need to be commensurate with the challenges and funded through fresh money, but the EU should lead in research and innovation, have a business-friendly environment, a fast permitting process and invest in a skilled workforce for the semiconductor sector,” he added.

On a separate vote, MEPs also backed the Chips Joint Undertaking proposal, which implements the measures put forward under the Chips for Europe initiative, and complements the Digital Europe and Horizon Europe programmes. Its aim is to increase investment in research, development, and innovation infrastructure in order to bolster large-scale capacity building.

“Microchips are integral to the EU’s digital and green transitions as well as our geopolitical agenda,” rapporteur on the Chips Joint Undertaking Eva Maydell said. “We are calling for fresh funding that reflects the strategic importance of Europe’s chips sector. Europe’s partners and competitors are also investing heavily in their semiconductor facilities, skills, and innovation.”

The European Parliament is now ready to begin talks with the Council on both bills. If negotiations are successful, the Chips Act could be a game changer for Europe. Earmarked at €43 billion and aiming to account for 20% of the world’s supply by 2030, the act could help the EU reinforce its competitiveness and sovereignty in the sector.

EU gets closer to blockbuster investment into domestic semiconductor chip production Read More »

7-key-takeaways-about-the-dutch-tech-startup-ecosystem-you-need-to-know

7 key takeaways about the Dutch tech startup ecosystem you need to know

The Dutch tech startup ecosystem has been steadily flourishing over the past five years, establishing itself as one of Europe’s most vibrant hubs. Yet, there are still hurdles the Netherlands needs to overcome in order to reach its full potential and successfully compete on a global scale.

That’s according to the annual State of Dutch Tech report by TechLeap, a non-profit organisation which helps quantify and accelerate the ecosystem in the Netherlands.

Here are seven key takeaways from the report you need to know about:

The Netherlands houses the EU’s most successful ecosystem

In 2022, the Amsterdam-Delta region was the leading ecosystem in the EU, overtaking Paris and Berlin. Globally, it ranks on the fourteenth place, behind cities in the US, Asia, and the UK.

However, the combined valuations of Dutch startups stagnated, with

the tech sector in the country dropping from the fourth to the sixth position globally at €0.4T in aggregate public market cap. The Netherlands is still the leader in the EU thanks to tech giants ASML, Prosus, and Adyen.

Fintech and healthcare were the dominant startup sectors in the country, with the first producing the greatest number of scaleups as well. The Netherlands also welcomed one new unicorn in 2022, bringing its total to 1.4 unicorns per million inhabitants. This places it above France (0.7) and Germany (0.5), but below Sweden (2.4) and the UK (1.7).

The tech sector is also growing outside the Amsterdam-Delta

Although the North Holland region remains the largest startup centre in the country, generating 38% of startups jobs, other local hubs are also growing thanks to regional specialisations and mutual cooperation.

For instance, North Brabant showed a 27% year-on-year growth in deeptech jobs, Utrecht increased its numbers of startups by 900, and Gelderland has become a leader in foodtech.

Job creation increases, but attracting talent remains a challenge

In 2022, startup-generated jobs reached 135K, rising from 109K in 2020 and 130K in 2021. Attracting tech talent, however, presents to be challenging for many startups.

Specifically, the percentage of hard-to-fill tech jobs has increased to 59%. On average, these types of vacancies stay open for more than 60 days.

This phenomenon occurred in other ecosystems as well, including Sweden, Germany, France, and the US.

Dutch startups struggle scaling up mainly due to lack of funding

The startup to scaleup ratio in the Netherlands (22%) is lower compared to other European hubs, such as Germany (37%), the UK (30%), and France (26%). That’s mainly because of insufficient capital.

In 2022, total VC funding in the Netherlands was €2.6 billion with the average funding being €0.26 million per startup. This was significantly lower than other major EU startup ecosystems. For reference, Sweden’s average was €0.9 million per startup.

Despite the Netherlands’ prowess in scientific and academic research, deeptech is amongst the underinvested sectors with €0.7 billion in funding in 2022 and a 23% startup to scaleup ratio.

On the brightside, investments on impact startups are on the rise with over €1 billion raised in 2022. And investments in all sectors overperformed pre-pandemic levels.

The gender gap

The gender gap is still a problematic issue within the industry. Just 10% of Dutch tech startups are run by women, and funding for female entrepreneurs is similarly insufficient. Only 0.7% of venture capital investments have been raised — since 2019 — by businesses with female founding teams, lagging behind the UK (2%), Germany (1.5%), and France (1.2%).

The potential for further growth

According to the report, the Dutch tech ecosystem has a massive potential of growth. In particular, it could add 250K jobs and €400 billion in value by 2030. This could be done by supporting the growth and impact of university spin-offs, bridging the talent and diversity gap, and cultivating a more resilient and internationally-embedded VC market.

7 key takeaways about the Dutch tech startup ecosystem you need to know Read More »

eu-launches-e3.75-billion-fund-of-funds-to-help-tech-startups-scale-up

EU launches €3.75 billion fund of funds to help tech startups scale up

Five EU member states and the European Investment Bank (EIB) Group have launched a new fund to support the late-stage growth of promising European tech startups and increase the continent’s competitiveness in innovation.

The so-called European Tech Champions Initiative (ETCI) aims to address the issue with inadequate late-stage funding, especially for companies seeking more than €50 million in capital.

Boosting European investment

“Europe’s tech startups often do not have sufficient capital to compete on a global scale and are pushed to relocate overseas. Closing this scale-up gap could create a large number of highly skilled jobs and boost growth,” the ECTI’s founders said in a statement.

“The European Investment Bank estimates that approximately 75% of European high-tech companies are acquired by non-European investors — predominantly American and Chinese — in late-stage development,” Nick Swan, serial entrepreneur and founder of SEOTesting, told TNW. “For the fund to be successful long-term, it will need to curb the trend of EU tech startups pushing to relocate overseas. It will also be telling if UK businesses begin to consider relocating to the EU to be able to get access to this big pot of funding.”

The ETCI has secured so far a total budget of €3.75 billion. Spain, Germany, and France have committed €1 billion each, Italy €150 million, and Belgium €100 million. The EIB Group has provided an additional €500 million. The funding capacity is expected to increase further in the future.

“This initiative is a striking example of what we can achieve collectively to strengthen the EU’s economic and industrial sovereignty,” Bruno Le Maire, French Minister of the Economy, Finance, and Industrial and Digital Sovereignty, noted.

The ETCI won’t subsidise startups directly, but will instead work as a fund of funds. In other words, it will deepen Europe’s scaleup venture capital (VC) funds “by bridging gaps in financing availability.” This way, it will help European institutional investors diversify their portfolio, while ensuring a continuous flow of capital to the continent-based scaleups.

“Much of this has to do with European strategic autonomy, which is something that leaders on the continent have to think about. By boosting the financial capacity of existing venture capital funds (and therefore financing scale-ups indirectly), they can make sure that European companies don’t get acquired by non-European investors, generally from the US and China,” Michaela Jeffery-Morisson, CEO and founder of Ascend Global Media (the company behind Women in Tech World Series), told TNW.

“There’s real value in supporting home-grown talent,” Jeffery-Morisson added. “Doing so will give European tech companies the freedom to concentrate on what they do and not get distracted wondering where money will come from. And this will also allow a distinctly European tech ecosystem with its own unique culture to develop.”

The way forward

While the ETCI is an exciting and promising opportunity for innovative entrepreneurs across the continent, financial support alone might not be enough.

Reduced bureaucracy and easier access to funds are critical, Oana Jinga, co-founder and CMO at previously EIC-funded Dexory, told TNW. “Startups need to operate at speed — the main advantage of being in innovation is to be first! So lengthy and time-consuming processes will quickly be dismissed for other options as they hold these high-growth companies back,” she explained.

Speaking to TNW, Lena Hackelöer, CEO of Swedish-based Brite Payments, identified two more requirements for home-grown innovation: cultivating a “startup-friendly environment” and implementing regulation that “supports” and “sets clear boundaries” for tech companies.

With the approval of the first investment applications under the ETCI potentially starting as early as next week, it will become clearer how the process will work out in action.

EU launches €3.75 billion fund of funds to help tech startups scale up Read More »

scientific-breakthrough-could-take-us-closer-to-impactful-quantum-computers

Scientific breakthrough could take us closer to impactful quantum computers

Scientific breakthrough could take us closer to impactful quantum computers

Ioanna Lykiardopoulou

Story by

Ioanna Lykiardopoulou

Ioanna is a writer at SHIFT. She likes the transition from old to modern, and she’s all about shifting perspectives. Ioanna is a writer at SHIFT. She likes the transition from old to modern, and she’s all about shifting perspectives.

In a world first, scientists from the University of Sussex and Universal Quantum, a spin-off of the university, have demonstrated that quantum bits (qubits) can directly transfer between quantum computer microchips.

This breakthrough is expected to overcome a major obstacle in building quantum computers that are large and powerful enough to address the crucial societal challenges they’re envisioned to: from medicine development, to the creation of new materials and climate change solutions.

To address these issues, experts estimate that millions of qubits are required — a number currently out of reach, with existing quantum computers operating on the 100-qubit scale.

“As quantum computers grow, we will eventually be constrained by the size of the microchip, which limits the number of quantum bits such a chip can accommodate,” Winfried Hensinger, Professor of Quantum Technologies at the University of Sussex and Chief Scientist and co-founder at Universal Quantum explained.

As a solution, the research team developed a novel technique, named “UQ Connect.” This method enabled the researchers to use electric field links that allow qubits to move from one quantum computing microchip module to another with record-breaking speed and accuracy. Specifically, the researchers were successful in transporting 2,424 ion qubits per second with a 99.999993% success rate.

“We knew a modular approach was key to make quantum computers powerful enough to solve step-changing industry problems. In demonstrating that we can connect two quantum computing chips — a bit like a jigsaw puzzle — and, crucially, that it works so well, we unlock the potential to scale up by connecting hundreds, or even thousands of quantum computing microchips,” Hensinger added.

Universal Quantum, which was recently named one of the 2022 Institute of Physics winners in the Business Startup category, has now been awarded €67 million from the German Aerospace Center (DLR) to build two quantum computers that will deploy the new technology.

“The DLR contract was likely one of the largest government quantum computing contracts ever handed out to a single company. This is a huge validation of our technology. Universal Quantum is now working hard to deploy this technology in our upcoming commercial machines,” Dr Sebastian Weidt, CEO and co-founder of Universal Quantum, and Senior Lecturer in Quantum Technologies at the University of Sussex, said.

You can find the full research here.

Scientific breakthrough could take us closer to impactful quantum computers Read More »

sun,-sea,-and-startups:-valencia’s-tech-sector-is-poised-to-explode

Sun, sea, and startups: València’s tech sector is poised to explode

València regularly tops rankings of the best cities in the world, due to its stellar combo of 300-plus annual days of sun, the Med on your doorstep, and a lifestyle that values free time, exercise, and good food. But it’s not all paella and chill.

The Valèncian region’s startup scene — based mainly in its capital plus the smaller cities of Alicante and Castellón — has been revving up in recent years, and is now making its mark in everything from AI, fintech, and cybersecurity, to cleantech, healthtech, and industrial IoT.

With TNW’s first conference in València just around the corner, we rounded up a bunch of leading lights on the local tech scene who have helped to grow the ecosystem over the past decade. Our aim was to get their take on where València’s tech scene is at today, what it’s got going for it, and the challenges ahead.

“I always say that we are in adolescence,” Javier Megias, managing partner of the EMEA VC fund of Plug and Play Tech Center in València, told TNW. “This is a really important moment, where you create your beliefs and the foundations of your life.

“In the next few years everything is going to speed up quite a bit. We are at the tipping point of the change in the ecosystem, going from a regional, quite local ecosystem to something much more ambitious — and much faster.” 

València by the numbers

Data shows a tech hub on the up-and-up. According to the Bankinter Foundation’s Startups Observatory, investment in València-based startups grew from €58.5m in 2021 to €73m in 2022. Ecosystem tracking platform Dealroom reports that the Valèncian region has the highest number of startups per capita in Spain.

Research by Startup Valencia found the number of registered startups in the region rose from 1,012 in 2021 to 1,212 in 2022; Dealroom, meanwhile, has an even higher estimate of over 1,500 startups.

Fever became a unicorn in January
València’s Fever recently bagged $227m (€212.6m) in a funding round — the largest amount of capital raised by a live-entertainment startup. Credit: Fever

València is still light on unicorns but can point to Flywire, the global payments enabler (now headquartered in Boston), as the first Spanish startup to go public on the Nasdaq in 2021, and live-entertainment platform Fever, which became a unicorn last year. Other noteworthy success stories include Jeff, Climate Trade, Voicemod, Sesame HR, and Sales Layer.

The investor scene skews towards local offices, with notable names including Draper B1, Angels Capital, private angel investor network BiGBAN, Demium, and GoHub Ventures, as well as Global Omnium, the world’s fourth-largest water utility. US-based Plug and Play also invests in Valèncian startups, including Climate Trade and Zeleros.

The City of València is also a very active participant in the ecosystems, with a raft of programmes that include València Activa, VLC Tech City, Invest in València, and VIT Emprende.

A bottom-up ecosystem

For Plug and Play’s Megias, the biggest difference between València and other startup scenes is the former’s bottom-up ecosystem.

“It was really built and connected by the founders,” he said. “We are really good at creating efficient companies from the ground up and scaling them to, let’s say, Series A — but we have a challenge to really scale that to the next level and build really big companies, like Flywire, for example.” 

Javier Megias
Megais cofounded two startups before joining Plug and Play.

More than 30% of all startups in València are two-years old or younger. Almost 30% of all the startups there are pre-seed, and another 30% are seed stage. Just under 10% of them have received Series A funding. Fewer than 1% have secured Series B financing, and the same goes for Series C.

“València’s international community is growing.

Megias says València is becoming a magnet for expats. The reasonable cost of living and the pleasant, manageable city are big attractions, but there are also more international jobs becoming available. Megias’ team, which looks after the EMEA region from central València, is made up of 30 different nationalities, all of whom speak English at work.  

“There’s an international community that’s growing because of big companies, like Plug and Play, coming here and attracting them,” said Megias, a cofounder of Startup Valencia, a non-profit that promotes local startups.

One of the key areas for startups in the region is La Marina, which also happens to be the venue for TNW València. The accelerator Lanzadera, TNW’s strategic partner, pioneered the development of a tech strip on the seafront.

Founded in 2013 by Joan Roig, the billionaire owner of the Mercadona supermarket chain, the complex is now home to the EMEA business school, Lanzadera itself and its scaleup space Angels, the Insomnia accelerator, Biohub, and Sesame. Lanzadera, which works under the umbrella of the Marina de Empresas entrepreneurial hub, has accelerated over 1,000 startups so far, and recently took in its first batch of over 100 from Portugal. 

This year, another building on the tech strip will open its doors: La Terminal startup hub. The site will provide startups and scaleups with a physical space to interact with each other, corporates, and investors.

La Terminal, the new international tech hub for the Valencian entrepreneurial ecosystem promoted by Startup Valencia,
La Terminal will become a new international tech hub for the Valèncian entrepreneurial ecosystem.

Connected for good

The speed of change in València is something that Bianca Dragomir, TNW València advisor and CEO of Avaesen, has witnessed first hand. Her pioneering cleantech cluster in the region is made up of 300 public and private stakeholders, 160 of which are companies in renewable energy, water cycle-and-waste management, and smart cities. Since Dragomir took over what was the first cleantech cluster in Spain in 2013, the organisation has accelerated more than 400 startups.

“When you come here, you get connected immediately.

“València is a very dynamic ecosystem, very diverse, and there are many different industrial sectors that are emerging, and traditional sectors that are shifting towards a new paradigm of sustainability,” Dragomir, a native of Romania, told TNW. “And the beauty of it — every single stakeholder that comes from beyond València says this — is that when you come here, you get connected immediately.”

BiancaDragomir
Dragomir is the first woman that the European Commission appointed “Cluster Manager of the Year.”

According to Dragomir, the interconnected nature of the city really boosted the cleantech sector, as startups, corporates, the local government, and eight universities drove intense collaboration and innovation.  

“‘Tech for good’ is very appropriate to describe what’s happening, and what has been happening for years already here… it’s a very good differentiation point,” she added.

Attracting the big bucks

Juan Vicén Balaguer, the co-founder and CMO of Zeleros Hyperloop and an advisor to TNW València, feels that the region’s youth brings advantages.

Zeleros hyperloop
The Zeleros hyperloop is based on all-electric pods that power themselves. Credit: Zeleros

Vicén notes that while the Valèncian ecosystem is young compared to the likes of Paris and Berlin, it has a “freshness” that encourages an open exchange of knowledge and experience between startups.  

“Something I think the entrepreneurship ecosystem in València has done well is basically taking advantage of the space [in the whole tech marina area],” he said. When investors come, they often get  a tour of all the accelerators and incubators along the Marina. 

Attracting large-scale investment, however, remains a challenge. “As of today, if you are thinking of València, you are not coming here to get investment, you are coming here because you find it a good place to start with low rates [for renting office space],” said Vicén.

“We are very good at entrepreneurs bringing new ideas to life but when it comes to investment, there is a gap. That is different in big financial hubs, like London or Paris, where you are in the capital city in the country, and it makes it much easier to do business.”

CMO_Juan Vicen
Vicén led Zeleros to the “Top Startup” prize at València Startup Awards.

Investment is also, of course, essential to attract the best talent — and Spain is not known for high salaries. According to Statista’s 2021 data on average full-time salaries in Europe, Spain is in 18th place in the continent. The Zeleros founders, says Vicén, have been “really transparent” with investors about the need to offer salaries that are compeitive with those in Northern European countries.

“Once we have those second-time founders, everything is going to be much faster.

Plug and Play’s Megias agrees, noting that companies in València need to “step up their game” on the salary front, but to do so they must connect with top investors in Europe. As is the case in many European ecosystems, the second generation of founders and employees, who stay and either invest or found new startups, will be essential to the maturation of València’s tech sector.

“Once we have those second-time founders that already have the connections, everything is going to be much, much faster,” said Megias.

From an outside observer’s view, one thing that needs to change is establishing English as a company language in scaleups, which would open up opportunities for international talent and investors. Zeleros, the Plug and Play Tech Center, and a few other organisations already do this. But in general, there is not a huge amount of English spoken here as a matter of course, and not all startups have an English version of their websites. 

Nonetheless, the ecosystem has a bright future ahead.

Accelerating growth

Nacho Mas, the CEO of Startup València, predicts that the Valèncian community will become one of the top 10 tech hubs worldwide.

“Despite being smaller than Madrid, we are experiencing faster growth… and we still have room for more,” Mas told TNW.

“All members of our community are working towards a common goal, which gives us a significant advantage,” he added.  

Nacho Mas
Mas says La Terminal will house more than 500 highly qualified jobs.

Mas noted that the La Terminal project in the Marina, where TNW València will take place, is expected to help attract further investment, talent, and projects into the ecosystem. 

“We are ambitious because we have the potential and resources to achieve success,” he said.  

Whether or not it end ups as a top 10 global tech hub remains to be seen, but València is definitely powering through its adolescence. If it can attract big investment going forward, the region’s startup sector looks set to explode.

If you want to experience València’s ecosystem for yourself, we’ve got something special for our loyal readers. Use the promo code TNWVAL30 and get a 30% discount on your conference business pass for TNW València.

Sun, sea, and startups: València’s tech sector is poised to explode Read More »

eu-awards-e50k-to-three-pioneers-in-social-innovation

EU awards €50K to three pioneers in social innovation

The EU has announced the three winners of the European Social Innovation Competition (EUSIC), which seeks to find pioneering solutions to societal challenges.

The 2022 challenge, named “the future of living,” was designed to attract participants who can advance the affordability, sustainability, and re-invention of European housing districts.

“Social innovation is crucial to increase resilience and support the transformation of our economies, while putting people first,” Hubert Gambs, the Commission’s Deputy Director General for Internal Market, Industry, Entrepreneurship, and SMEs,  said.

“With this competition, which celebrates its tenth edition this year, we support social innovations that will bring social, environmental, and economic value at once. The three winners of the 2022 edition are social innovators greatly contributing through their innovative projects to the future of our living,” Gambs added.

The three winners, who will receive a prize of €50,000, are the following:

ReLearn (Italy)

The Torino-based startup has developed smart sensors that can be installed on existing bins. The sensors monitor daily waste production and sorting in designated bins using AI. They then provide reports and suggest the best waste management practices through a gamification approach that facilitates community engagement.

That way, ReLearn can help companies and municipalities reduce their environmental impact. The company says that its product can achieve a 60% increase in recycling rates. So far, it’s active in three countries and eight different cities.

Sostre Cívic (Spain)

Sostre Cívic is implementing an alternative housing model to address the accessibility and affordability issues of private ownership. It promotes cooperative housing, where collective ownership prevents speculation, as it renders individual profit-making from selling or renting a property impossible.

Members of the collective, who are also the property owners, can reside in the houses either for a very long time, or indefinitely. They are required to make an initial contribution and pay monthly installments that derive from the costs of acquisition, maintenance, and operation of the housing project — but not from the trends of the real estate market.

Sostre Cívic, which originally started as an association, is the first housing cooperative in Catalonia, and so far counts 17 projects and 86 homes in use.

Efficient Energy Technology (Austria)

To help residents use solar energy without the need to install solar panels, Efficient Energy Technology has developed a small solar power plant, designed for installation on balconies.

The so-called SolMate can be plugged into a socket and supply the apartment with renewable energy. Thanks to its proprietary measuring technology, SolMate supplies electricity when needed and stores the rest. This way it can also work as a back-up electricity generator in the event of power failures. The product comes together with an app, and, according to the startup, can cover about 60% of a home’s electricity needs, while saving around 16,000kg of CO2.

EU awards €50K to three pioneers in social innovation Read More »

uk-strikes-seven-russians-with-first-ever-joint-cyber-crime-sanctions

UK strikes seven Russians with first-ever joint cyber crime sanctions

In a coordinated action with US authorities, the UK has imposed sanctions on seven Russian cyber criminals associated with the deployment of the Conti and Ryuk ransomware as well as the Trickbot banking trojan. This follows a thorough investigation led by the National Crime Agency (NCA) and marks the UK’s first-ever joint cyber crime sanctions.

According to the British government, ransomware is a “tier one national security threat” that’s increasingly used to attack businesses and public sector organisations.

Ransomware groups known as Conti, Wizard Spider, UNC1878, Gold Blackburn, Trickman, and Trickbot have been responsible for the deployment of ransomware strains including Conti, Ryuk, and Trickbot.

The groups target organisations they expect would pay the most and time their attacks to cause the maximum damage. Conti and Ryuk alone have affected 149 UK individuals and businesses, extracting at least an estimated £27 million.

Conti’s recent victims in the UK include the Scottish Environment Protection Agency, food distribution firm Reed Boardall, Cleveland Council, and forensic laboratory Eurofins.

“These criminals and those that support them are not immune to UK action.

Conti was also one of the first cyber crime groups to declare support to Russia’s war in Ukraine, while the National Cyber Security Centre (NCSC) has assessed that key members of the group are “highly likely” to “maintain links” with the Russian Intelligence services.

And although the group was disbanded in May 2022, government reporting suggests that members continue to be involved in threatening UK security with new ransomware strains.

“The sanctions are the first of their kind for the UK and signal the continuing campaign targeting those responsible for some of the most sophisticated and damaging ransomware that has impacted the UK and our allies,” Graeme Biggar, NCA’s General Director, said in a statement.

“The United States and the United Kingdom are taking coordinated action targeting cyber criminals who launched assaults against our critical infrastructure,” Antony J. Blinker, US Secretary of State, highlighted in an associated press release. “We will continue to work with the United Kingdom and with other international partners to expose and disrupt cyber crime emanating from Russia.”

The people sanctioned include the following individuals:

UK and US sanction seven Russian cyber criminals
Credit: NCA

The seven individuals are now subject to travel bans and asset freezes. In addition, making funds available to them, such as paying ransomware — including crypto assets — has been strictly prohibited.

The US Treasury Department warned that “any foreign financial institution that knowingly facilitates a significant transaction, or provides significant financial services for any of the individuals or entities designated today could be subject to US correspondent or payable-through account sanctions.”

Through their collaboration, the UK and US authorities said they will continue to expose cyber criminals associated with the ransomware groups and crack down on their activities, aiming to reinforce their cyber security.

UK strikes seven Russians with first-ever joint cyber crime sanctions Read More »

we-asked-hardt-hyperloop-which-modes-of-transport-are-over-or-underrated

We asked Hardt Hyperloop which modes of transport are over- or underrated

Ioanna Lykiardopoulou

Story by

Ioanna Lykiardopoulou

Ioanna is a writer at SHIFT. She likes the transition from old to modern, and she’s all about shifting perspectives. Ioanna is a writer at SHIFT. She likes the transition from old to modern, and she’s all about shifting perspectives.

Magnetic floating pods traveling through a series of tubes sounds like a scene from sci-fi movies, right? But what if they could become a new mode of mass transport? Yes, we’re talking about the hyperloop.

One of the companies working on the tech is Hardt Hyperloop. Since 2020, the Netherlands-based startup has developed numerous prototypes and test benches. It’s also part of the European Hyperloop Center and has received €15 million in funding from the EU Commission.

The company is developing hyperloop tech for passengers and cargo, enabling travel through a network of low-pressure tubes using magnetic levitation. The pods are expected to reach a 700km/h cruising speed and a 1,000km/h top speed, drastically reducing travel time. And sustainability-wise, the system doesn’t produce direct emissions and can be powered by green electricity.

We caught up with Mars Geuze — Hardt Hyperloops’ Chief Commercial Officer — at TNW 2022 and asked him what’s hyperloop’s advantage and which modes of transport are over- or underrated. The result was a fast-paced, fun video, which you can find embedded at the top of this article, or watch right here.

Geuze argues that hyperloop is still underrated, even though it can travel with 10 times less energy than aviation, or road transport. But optimistically, “in the latest survey, there was about 35% acceptance rating, scoring higher than autonomous cars,” he told us.

Trains and buses are underrated for Geuze as well. Trains, in particular, can aptly connect cities and provide high capacity with a lower carbon footprint compared to cars, he explained.

In contrast, Geuze finds passenger cars an overrated means of transport. “They’re the biggest contributor to your energy footprint and we need to shift away from them,” he noted.

But what does he think of golf carts… or pogo sticks? Click here to get his answers and watch the full interview.

We asked Hardt Hyperloop which modes of transport are over- or underrated Read More »

car-with-no-human-inside-drives-on-european-road-for-first-time

Car with no human inside drives on European road for first time

Car with no human inside drives on European road for first time

Thomas Macaulay

Story by

Thomas Macaulay

Writer at Neural by TNW Writer at Neural by TNW

For the first time, a car with no human inside has driven on a public road in Europe.

The feat was accomplished by Vay, a German startup. The company uses an approach called “teledriving” to remote-control cars from sites located miles away.

Operators pilot the vehicles with steering wheels, petals, and monitors. They also recieve road traffic sounds via microphones and headphones.

The system resembles racing simulators for video games — only the action on the screens is happening for real.

Redundant mobile networks provide the data transmission. In the event of a network failures or emergency, the vehicle automatically come to a safe stop.

Vay teledrive station
Vay’s teledrive stations display a field of vision across monitors. Credit: Vay

Vay trialled the tech without safety drivers after receiving an exemption permit from Harmburg. The company announced on Tuesday that it’s now completed its first test-drives on predefined routes in the city.

“As a leading teledriving company, we have been driving remotely-controlled electric cars on public roads in Berlin and Hamburg for more than three years,” Vay CEO and co-founder Thomas von der Ohe said in a statement.

“With the exemption permit received in December 2022, we were now able to successfully drive the first car without a safety driver on a public road.”

Vay fouders
Vay was cofounded by (left to right) Fabrizio Scelsi, Thomas von der Ohe, and Bogdan Djukic. Credit: Vay

Vay was founded in Berlin in 2018. The startup has gone on to build a team of over 150 people, which combines software and product experience from Silicon Valley with automotive hardware and safety engineering from Europe.

The company eventually plans to sell their tech in two ways. The first is a door-to-door mobility service. A car will be teledriven to a user’s location, where the customer will take the wheel and drive to their destination, at which point the remote operator takes over again. The second service is teledriving a car while the user sits in the back.

Vay's tech has been installed in Kia electric vehicles. Credit: Vay
Vay’s tech has been installed in Kia electric vehicles. Credit: Vay

Vay argues that teledriving will be safer for passengers and more convenient for drivers, while reducing inner and private vehicle ownership. The services aim to compete with existing car-sharing and ride-hailing providers.

Anjes Tjarks, Hamburg’s Senator for Transport and Mobility Transition, envisions further benefits.

“Vay creates such added value with its teledrive service: no need to search for a parking space, emission-free, digitally bookable and as a convenient service, for example for the ‘last mile’ from the bus or train station to your own front door,” he said.

Vay will also use its test data to develop self-driving features. Perhaps teledriving can give a jumpstart to the stalling autonomous vehicle sector.

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