In an era where scaling a business demands more than just ambition, the environment in which a company operates has become a critical factor. This was the resounding message from the “Scaling Smarter: The Power of Ecosystem & Serendipity” panel at London Tech Week, featuring insights from leaders at the forefront of urban development, venture building, and deep tech innovation. The discussion, held on the Founders Stage, illuminated how a robust local ecosystem can provide the essential roots for strong growth, access to capital, and a vital talent pipeline for burgeoning businesses.
Moderated by Prema Gurunathan, Managing Director at Nexus – a collaboration between the London Borough of Hammersmith & Fulham and Imperial College London – the panel brought together diverse perspectives on fostering entrepreneurial success. The speakers included Charles Mindenhall, Co-Founder of Blenheim Chalcot; Councillor Stephen Cowan, Leader of the London Borough of Hammersmith & Fulham; and Antoinette Nothomb, Co-Founder of CyanoSkin.
The borough as an innovation catalyst
Councillor Stephen Cowan highlighted the proactive role of local government in cultivating a thriving ecosystem. He outlined Hammersmith & Fulham’s journey to becoming an innovation district, starting with White City. This “entrepreneurial municipal government” approach, launched in 2017 following a 2014 election plan, has seen the borough attract more high-value economic investment than the rest of West London combined, and more green tech investment than Manchester, Birmingham, and Bristol collectively. Notably, the area has seen the creation of approximately 13,200 STEM jobs in future industries over the last seven to eight years.
“The trick is to get a cluster where the ecosystem functions,” stated Councillor Cowan, emphasizing the importance of creating environments that encourage “serendipitous collisions” – chance encounters that can lead to significant breakthroughs. He underlined the crucial role of world-leading academic institutions like Imperial College London, which has risen to become the second-best university globally, as a source of innovation that local government aims to transform into businesses within the UK.
More than just shared walls
Charles Mindenhall elaborated on how Scale Space, a joint venture with Imperial College based in White City, exemplifies a true ecosystem rather than just a co-working space. With 200,000 square feet across four buildings and a single entrance, it deliberately fosters interaction. “You get this amazing mix of people coming through a place, the physical space,” Mindenhall explained, highlighting the presence of academics, business leaders, early-stage Imperial spin-offs, and scaling ventures.
This physical proximity, particularly in a post-pandemic world, remains crucial for collaboration and the exchange of ideas that evolve into innovations. Mindenhall cited the example of Phosphor, a Blenheim Chalcot venture that has grown to over 150 people and operates globally, benefiting significantly from the Scale Space ecosystem. The ability to expand offices without relocating and to learn from other companies facing similar growth challenges is invaluable for businesses navigating the anxieties of scaling.
A founder’s perspective
Antoinette Nothomb, Co-Founder of CyanoSkin, a company developing an algae-based coating to absorb CO2, offered a firsthand account of serendipity’s impact. Being based at Scale Space has been “key” and “mandatory” for her pre-seed startup. Nothomb shared how a chance encounter with the asset manager at Scale Space led to their first trial of the coating on a rooftop in White City.
Furthermore, the ecosystem provided significant financial benefits. Nothomb revealed saving approximately £200,000 in legal fees by learning about “Green Tech Legals” from another founder, which connected them with a top law firm. Her experience at Imperial’s incubator and the Undaunted acceleration program also provided vital lab access, trials, contacts, and funding, ultimately influencing CyanoSkin’s decision to remain in the UK rather than moving to the US.
Bridging the academic-business chasm
The panel also touched upon the relationship between academia and business. Charles Mindenhall noted a perceived “chasm” in the UK compared to the US, where there’s a stronger culture of academic entrepreneurialism. Despite this, Blenheim Chalcot actively recruits Imperial students, benefiting from the Business School’s presence at Scale Space.
Charles Mindenhall on the contrast in academic entrepreneurialism between the UK and US.
Antoinette Nothomb, however, demonstrated a deeply integrated relationship with academia. Four of her eight team members are PhDs from Imperial or Queen Mary, with half their salaries funded by universities. Her technical mentor board comprises researchers and professors from Imperial, Cambridge, and Oxford, underscoring the critical role of academic expertise for deep tech startups in their pre-revenue, lab-intensive stages.
The facilitator of growth
Councillor Cowan reinforced the idea that turning academic innovations into successful businesses requires localized ecosystems, not centralized directives from Whitehall. He stressed the importance of providing a “roadmap” and support for entrepreneurs, particularly given the high failure rate of early-stage businesses, to prevent “needless failures” due to issues like poor cash flow forecasting or intellectual property theft. The role of the municipality, he concluded, is to act as a “facilitator of making action happen,” citing his introduction of Blenheim Chalcot to Imperial as an example.
The post-pandemic physical ecosystem
Addressing the evolving nature of physical ecosystems post-pandemic, Charles Mindenhall noted that Scale Space was reconfigured during COVID-19 to feature more shared areas like canteens and coffee spaces, alongside smaller satellite offices. This design encourages interaction and collaboration while accommodating new working preferences, aiming to foster a comfortable return to office environments. He also highlighted the importance of teaching academics that, unlike in their research, building businesses involves frequent failures, encouraging a mindset of “failing upwards”.
Key takeaways for founders
The panel concluded with actionable insights for founders:
- Local government is a growth partner: Leverage municipal initiatives and support structures.
- Ecosystems are about community, not just space: Actively engage with the network around you.
- Embrace serendipity: Seek out chance encounters and be open to unexpected opportunities.
Antoinette Nothomb’s practical advice for founders was to consistently seek out and meet with more experienced Series A or B founders, even for a brief chat, to gain advice on everything from sales pitches and customer introductions to navigating regulations. This proactive networking, she emphasized, has saved her company significant time and money.
In essence, this panel at London Tech Week underscored that for fintechs and other ambitious ventures, scaling smarter means going deeper locally, building strong foundational roots within a supportive ecosystem, and fostering a community where collaboration and serendipitous connections can flourish.
