Douglas Hansen-Luke: 'Venture capital is on a cliff edge'

The founder and CEO of Future Planet Capital, discusses the state of venture capital and why he believes impact investing is the future.

by Éilis Cronin

The UK economic landscape is littered with financial potholes; the ghosts of the 2020 Covid pandemic and its subsequent lockdowns aside, the country has been rocked by soaring inflation and interest rates since the end of 2022, resulting in a cost of living crisis that seems to have no clear end in sight.

As a result, the venture capital (VC) landscape is “on a cliff edge”; according to executive chairman of Future Planet Capital, Douglas Hansen-Luke. Venture capital is a "maturing industry" but there has been a significant decrease in the amount of money VCs have been able to raise - according to data from KPMG, global VC investment dropped between Q1 and Q2 this year, falling from $86.2bn to $77.4bn.

Hansen-Luke, whose early VC credits include Bain Capital Ventures, says: “What we’re seeing is VCs spending more money on their existing portfolio, rather than taking on new investments. At the start of 2023, many VCs were looking at their investments and figuring out which ones they were going to reserve cash for."

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