Panel Insights: Funding the Future of AI – Hardware, Risk and Scaling from the UK, Europe and Taiwan

In the closing panel of Semi Impact Forum 2025, a group of leading venture capitalists and innovation strategists examined the evolving AI investment landscape. The discussion highlighted the opportunities and constraints facing the UK and Europe in deep tech and semiconductor funding—and how Taiwan might serve as a scaling partner for hardware-based innovation.

Michael Dimelow – Chief Commercial Officer, Bloc Ventures

Invest in what you understand—and what can scale

Michael Dimelow opened by drawing a clear line between hype and substance. While platforms like OpenAI have pulled in vast capital ($60B), he stressed that venture success still hinges on fundamentals: deep understanding of the technology and a clear path to scalability.

His firm backs companies with unique IP and global scale potential, particularly in semiconductors and hardware-heavy AI. He also noted a growing interest in AI at the edge—a space where Europe can lead with engineering precision and domain expertise.

Lawrence Lundy-Bryan – Partner, Lunar Ventures

Capital is still chasing software, but frontier hardware matters

Lawrence highlighted a shift—slow but noticeable—towards investing in AI infrastructure and new hardware paradigms, such as neuromorphic computing. He warned, however, that capital availability remains skewed in favour of software models, particularly those that promise short-term returns.

He outlined four key risk categories that investors weigh when evaluating deep tech startups: product-market fit, people risk, manufacturing risk, and scientific risk. Reducing these early—especially by engaging Series A investors from the US—can make a startup far more fundable.

Koen Vandecaveye – Business Developer, Nordic Innovators

Europe needs a coordinated deep tech investment agenda

Koen pointed to the fragmentation in Europe’s investment landscape as a major blocker. With national programmes operating in silos, and cross-border funding structures lagging, deep tech ventures often lack the capital scale needed to compete globally.

He advocated for a pan-European agenda to support infrastructure and scale-up funding—especially for science- and hardware-driven ventures that need more than just seed capital to grow.

John Spindler – Founder and General Partner, Twin Path Ventures

Edge AI and early customer traction are keys to survival

John focused on the importance of early commercial validation, especially in edge AI and hardware. He argued that building strong relationships with early adopters is critical for momentum—long before a company reaches maturity or profitability.

He also noted the importance of founder support—not just financially, but through coaching and prioritisation. VCs, he said, must help startups hit fast, tangible milestones that attract later-stage funding.

Chris Wiles – Director, Foresight Group Ventures

UK has talent, but scale remains elusive

Chris identified the UK’s strengths—IP development, edge AI capabilities, and engineering talent—but pointed to systemic weaknesses: limited late-stage capital, and difficulty in retaining leadership talent with experience scaling globally.

He noted that many promising UK startups hit a wall after Series B and are often forced to look to US markets for growth or relocate key executive roles. The UK’s entrepreneurial ecosystem, while improving, still lags in terms of risk appetite and scale mindset.

Cross-Cutting Observations & Action Points

• Early engagement with Series A investors, particularly from the US, is vital to secure capital for high-risk, high-reward ventures.

• Pan-European coordination is urgently needed to reduce market fragmentation and improve deep tech scale-up viability.

• The UK must address leadership and capital gaps if it wants to grow its deep tech base into global players.

• Hardware and AI infrastructure investment must be patient and strategic—not forced into short-term software cycles.

• Taiwan offers partnership opportunities for UK startups seeking to scale manufacturing and infrastructure internationally.

This panel didn’t just assess funding gaps—it mapped out what’s needed to close them. In the AI age, capital still follows clarity. The challenge now is to connect the IP, infrastructure, and investment that will build tomorrow’s global leaders.