As institutional investors increasingly regard ESG as an important element of their investment decision, Tom Hopkins, of Parkwalk, wonders whether this element of EIS investment should form part of the client conversation.
Parkwalk is not a specialised impact investor in the true sense however our focus on cutting edge technology that has been developed within UK universities and research institutions certainly results in global positive impact.
Our EIS fund investment strategy aims to evolve great ideas and research into world changing businesses that will have a positive impact on the world. Through the businesses that we back and build, we aim to address some of the world’s most pressing challenges in areas such as disease prevention and mitigation, the transition to a less carbon intense energy world and in productivity improvement.
Parkwalk has invested in over 100 companies, and current portfolio employs over 1,500, mostly highly skilled, people, and has over 1,000 patent families.
The knowledge creation and trickle-down impact of the portfolio company work on society is difficult to quantify at present. But there have been leaps forward in med-tech, cleantech, AI / Machine learning in diagnosis, interpretation of genomic data, gene therapies etc.
ESG and SDGs
Our approach therefore has knock on consideration to environmental, social and governance (“ESG”) factors and their impact.
The Sustainable Development Goals (“SDGs”), created by the UN, are the blueprint to achieve a better and more sustainable future for all.
How does Parkwalk and its portfolio companies map against these SDGs? We estimate that Parkwalk and/or its portfolio companies are currently influencing all of the 17 SDGs. In particular, there is concentration around five of the SDGs, notably:
• 3 (Good Health and Well-Being)
• 7 (Affordable and Clean Energy)
• 9 (Industry, Innovation and Infrastructure)
• 11 (Sustainable Cities and Communities)
• 12 (Responsible Consumption & Production)
So whilst the Parkwalk Opportunities EIS fund is not an impact fund the great majority of the investment opportunities will deliver environmental, sustainable and social returns as well as delivering attractive financial returns.
Here are some examples of Parkwalk’s portfolio companies and the societal impact, mapped into the five SDG’s highlighted above.
SDG (3) – Good Health and Well-Being
Brainomix www.brainomix.com is aiming to improve stroke treatment dramatically by developing software that gives all hospitals and clinics access to reliable diagnoses for their patients. Brainomix’s e-ASPECTS software, developed at Oxford University, is providing automated and standardised analysis of CT brain scans for stroke damage, assessing patients’ suitability for treatment, enabling quick and accurate assessment of stroke damage
Congenica www.congenica.com has translated research from the Sanger Institute, Cambridge. The software enables the accurate, rapid and scalable clinical interpretation of genetic and clinical data, enabling clinicians and researchers to diagnose ‘rare diseases’ in weeks rather than multiple years, and to develop prognoses and treatment options. The company is a provider of diagnostic support services to Genomics England (who recently completed the 100,000 genome project)
Creavo www.creavomedtech.com out of Leeds University has developed technology that originated from Professor Ben Varcoe’s lab in magnetocardiography. The first product resulting from the work will help physicians in A&E departments rule out significant heart disease in patients presenting with chest pains resulting in significant cost reductions for the the NHS
Fluidic Analytics www.fluidicanalytics.com is developing a line of tools for the rapid, accurate, cost-effective analysis of proteins and other biomolecular species. By combining a powerful microfluidics platform developed at the University of Cambridge with efficient manufacturing and design principles, the Company is striving to be a leading provider of products that enable breakthrough advances in fundamental protein science, drug development and diagnostic
PhoreMost www.phoremost.com has developed a next-generation phenotypic screening platform called ‘Site-Seeker’ to identify the best new targets for future therapy, and crucially, how to drug them. The technology developed at Cambridge University has the potential to significantly increase the diversity of novel therapeutics for cancer and other unmet diseases, where treatment options are currently severely limited
PredictImmune www.predictimmune.com is a Cambridge spin-out who are providing tools (biomarkers) to physicians to help manage the treatment of various auto-immune diseases. The issue is that immune diseases are characterised by a high degree of disease heterogeneity and treatment is associated with high costs and severe side effects – the company’s IP reduces both
Psyomics www.psyomics.com aims to utilise blood-based diagnostics to increase the speed of diagnosis and to reduce the level of misdiagnosis for mental health patients. It exploits biomarker technology from Prof. Bahn’s lab at Cambridge University’s Dept of Chemical Engineering & Technology. The diagnostics will be combined with an online questionnaire to give the primary care provider sufficient information to identify the problem and start treatment
SDG (7) – Affordable and Clean Energy
Bramble Energy www.brambleenergy.com a spin out from UCL, has developed a low cost, scalable fuel cell architecture which can be used in mobility applications. Currently being tested by well-known OEM with possible follow on Government contract. They are also in advanced discussions to form Chinese Joint venture
Ceres Power www.cerespower.com has developed low cost, steel fuel cells that operate on mains natural gas following on from research by Prof. Steele and Imperial College. The cells can be manufactured using standard steel and ceramic products and standard industrial processes. The high efficiency of the cells keeps cost down and reduces the carbon footprint of energy production
First Light Fusion www.firstlightfusion.com is researching energy generation by inertial confinement fusion, research developed at Oxford University. First Light discovered new implosion processes that may achieve the high temperatures and compression necessary for fusion reactions and other valuable applications
Ilika www.ilika.com is a materials company which is focusing on its solid-state battery technology from Southampton University. Its proprietary anode material and manufacturing know-how enable it to construct safe and efficient batteries with a very small footprint. These are suitable for powering devices used in the Internet of Things and wearables, e.g. medical devices
Oxford PVwww.oxfordpv.com has developed technology that produces a combined silicon-perovskite solar cell capable of world record solar energy conversion efficiency. It is manufactured from inexpensive, abundant, non-toxic and non-corrosive organic materials and can be scaled to any volume
Yasa www.yasa.com a University of Oxford spinout, has developed dynamic and innovative electric motors bringing a new generation of high power and high torque density electric motors to market. The company has developed class leading axial flux traction motors for use in both Automotive (EV’s & HEV’s) and also Industrial applications
SDG (9) – Industry, Innovation and Infrastructure
8Powerwww.8power.com is a Cambridge University spinout, which specialising in self-powered wireless sensor solutions for industrial plant applications. They are enabling machine condition monitoring at lower cost and easy installation for water/waste treatment, manufacturing industries and oil and gas industries
Bodlewww.bodletechnologies.com has developed a smart material that can be used in low-energy, high resolution displays and glazing. The invention came out of the Department of Materials at Oxford University. The technology can enable a display of vivid colours that doesn’t look washed out in bright outdoor conditions, so can offer an alternative to energy-hungry, light polluting backlit and emissive display technology like LCD and OLED
Cambridge GaN Devices (CGD) www.camgandevices.com is a spin-out from the High Voltage Microelectronics and Sensors lab at the University of Cambridge Engineering Department. Gallium Nitride (GaN) has long been considered a potentially superior material to silicon for use in the rich 600V power electronics market. CGD is working on patented designs to allow much higher power density efficiency in higher power applications such as Electric vehicles inverters
Echion Technologies www.echiontech.com out of Cambridge University empowers super-fast charging through a portfolio of advanced battery active materials for next generation lithium-ion batteries. Their materials ‘drop in’ to existing manufacturing infrastructure and improve charging, capacity and safety
Mind Foundry www.mindfoundry.ai has developed advanced machine learning algorithms to help organisations unlock insights hidden deep within their big data. They are utilising 25 years of experience from Oxford University’s Machine Learning Group to do so. The aim is to solve the problems facing organisations today as data grows rapidly but the ability to interrogate and use it lags behind
Paragraf www.paragraf.com from Cambridge University is harnessing the extremely high conductivity, superb strength, very low weight and ultimate flexibility of graphene. Paragraf’s technology is the first ever commercial-scale method validated to reproducibly deliver functionally active graphene with properties targeted to its final device-specific application, with both high quality and high throughput
SDG (11) – Sustainable Cities and Communities
Arvia www.arviatechnology.com from Manchester University, has developed technology that removes and destroys organic contaminants and oils using a method that is free of process chemicals, is energy efficient, and produces little solid or liquid waste for disposal. Applicable to water treatment and purification across multiple industries and utilities.
Geospockwww.geospock.com provides a real-time scalable database for rapidly changing complex data. GeoSpock’s technology platform, developed at Cambridge University, sits at the base of an infinite number of Industry verticals which require real-time analysis of Big Data and all that confers in affiance and accuracy for any number of decision-making processes. It has won its first Smart City contracts
Inflowmatix www.inflowmatix.com is an Imperial College London Spin-out that has developed sensor technology to detect high frequency, transient pressure events in water systems and analytics to interpret the data and improve efficiency
Oxford Flow www.oxford-flow.com designs and manufactures innovative pressure control equipment. There has been little innovation in this field over many years and Oxford Flow’s pressure reducing valves and gas pressure regulators, developed at Oxford University, are smaller and lighter with less moving parts than competing technology
Perpetuum www.perpetuum.com out of the University of Southampton, engineered, produced and commercialized the world’s first practical electromagnetic vibration harvesting micro-generator delivering the power required to transmit large amounts of autonomous wireless sensor data reliably from remotely monitored assets (eg rail stock)
Symetrica www.symetrica.comspecialises in the detection and identification of radioisotopes for Security Applications. The company, a University of Southampton spinout, works with prime contractors and government agencies to design, develop, test and deploy detection equipment for use by law enforcement personnel, customs officers, the emergency services, military personnel and first responders
SDG (12) – Responsible Consumption & Production
Aqdot www.aqdot.com spun-out of the University of Cambridge Department of Chemistry, and has developed a proprietary chemical encapsulation technology that enables the production of small droplets that can carry active materials such as cleaning enzymes used in domestic detergents, or agrochemicals for crop treatments
Lettus Grow www.lettusgrow.com designs irrigation and control technology for vertical farms that makes them simple, efficient and sustainable. Bristol University spinout supplies aeroponic hardware, to grow plants in an air/mist environment without soil, and software and data services to optimise performance for individual plant species. The system dramatically reduces the operational cost of indoor agriculture, whilst delivering an average of a 70% increase in crop growth rates
MoA Technologies www.moa-technology.com is a plant genetics company spun out of The University of Oxford, using Professor Liam Dolan’s research to generate potential candidates for use as herbicides. The herbicide market mirrors the antibiotic market, in that there have been few new molecules developed in recent years and resistance is developing to those products on the market
Quantum Computing: solving quantum issues across energy, food, and multiple sectors
Oxford Quantum Circuits www.oxfordquantumcircuits.com is part of Oxford University’s world leading efforts in quantum computing. OQC’s focus is on using a superconducting circuit approach to form the qubits required for a quantum computer. It is utilising Professor Peter Leek’s ground-breaking research in the field
Phasecraft www.phasecraft.io was established out of UCL to develop quantum software for quantum information processors both near-term intermediate-scale, as well as for universal fault-tolerant computers
Quantum Motion www.quantummotion.tech from Oxford University aims to develop quantum computer architectures based on silicon technology, leveraging CMOS processing to achieve high-density qubits which can scale up to large numbers and tackle practical quantum computing problems
