Today is World Entrepreneurs Day - a timely moment to reflect on the vital role entrepreneurialism plays in driving the country’s growth. Entrepreneurs are the ones who take the leap, build businesses from the ground up, and create the opportunities that allow investors like us to do what we love: backing brilliant companies.
Yet, at a macro level, the UK’s entrepreneurial landscape is facing real challenges. Last year saw a record low in new business creation, while business closures continued at pace. Given that early-stage business formation is the lifeblood of the entire investment ecosystem and those being founded today could be the ECI portfolio stars of tomorrow, we all have a keen interest in the UK reigniting its entrepreneurial spirit.
1. Expand access to capital
UK pension funds currently allocate only 4.4% of their assets to UK equities, which is approximately 30% lower than most markets, except for Canada, Denmark, and the Netherlands, according to New Financial. Reallocating even a small fraction of the UK’s £3 trillion pension assets into venture and growth funds could inject tens of billions into British startups. This is a key objective of the Mansion House Reforms with the Accord announced in May stating that half of pension funds’ defined contribution to private markets should be into UK companies. However, it is important to note that this initiative is voluntary and not legally binding.
To further support entrepreneurs, the UK could bridge the gap between startups and scale-ups by introducing investment incentives for later-stage businesses. Expanding seed investment incentives like SEIS/EIS to support later growth stages could help more entrepreneurs navigate the challenging growth phase and achieve success.
2. Skills and talent
Many founders we speak to trace their entrepreneurial spark back to their upbringing - often inspired by a family member or someone they knew who ran a small business. Yet, few recall entrepreneurship being encouraged, or even mentioned, as part of their formal education. Embedding it more visibly in the curriculum could help shift perceptions - making entrepreneurship feel both positive and accessible. Just as importantly, it would promote valuable skills such as teamwork, problem-solving, resilience, and financial literacy - traits that benefit any career path.
This shift could also help broaden the diversity of the UK’s entrepreneurial landscape. For example, women currently account for just 18% of new company founders in the UK. That points to a vast pool of untapped entrepreneurial potential - and with it, untapped economic growth. Targeted support programmes for female and minority entrepreneurs could help unlock this potential. At the same time, attracting global talent remains vital. Expanding initiatives like the Global Talent Visa to welcome more entrepreneurs, scientists, and engineers could help more innovators put down roots in the UK.
3. Support innovation
The UK has long been a leader in commercialising research, but its performance has declined compared to a decade ago. One contributing factor is that UK universities typically take around a 16% equity stake in spinouts - more than double the average in the US and EU. This higher stake can deter founders and investors alike.
More universities could also benefit from fostering industry and start-up ecosystems similar to Cambridge’s Silicon Fen, where close collaboration between academia and enterprise drives innovation. This is especially critical in fast-moving fields like AI, where connecting researchers with industry partners is essential to accelerate development and deployment. For example, ECI partnered with Manchester Business School to explore new models to support its proprietary AI platform, Amplifind™.
The UK’s ambition to raise R&D investment to 2.4% of GDP reflects a recognition that every pound invested in research can yield significant returns in the form of new products, businesses, and economic growth.
4. Streamline policies
Entrepreneurs should not feel constrained by red tape, complex incentives, or burdensome taxes. A stable and supportive tax and regulatory environment is essential to reward those willing to take risks. However, current fiscal trends suggest that contributions are more likely to rise than fall. For instance, recent changes to Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) have resulted in higher tax rates.
Some have suggested introducing a ‘rollover relief’, allowing an entrepreneur who sells one venture to reinvest the proceeds into a new start up without an immediate tax hit. This would create a flywheel where success breeds more startups.
Regulation should also be streamlined and proportionate and take into account the cumulative cost of compliance for businesses. Exempting early-stage businesses from the most onerous requirements could help them focus on growth and innovation during their most vulnerable phase.
5. Create the right culture
The UK has much to be proud of when it comes to innovation - but the celebration of entrepreneurial success often feels muted. Unlike in the US, where hustle is admired and being a CEO is seen as aspirational, the UK can sometimes take a more sceptical view. Success is met with caution, and ambition is too often seen as exhausting rather than inspiring.
To shift this narrative, we need to do more to spotlight the vital role entrepreneurs and business owners play in building a thriving economy. Sharing their journeys - both the wins and the setbacks - can help normalise risk-taking and make entrepreneurship feel more attainable. At ECI, we’ve had the privilege of backing businesses that have scaled impressively, such as MiQ and Wireless Logic. The stories of their founders, Gurman Hundal and Oliver Tucker, offer powerful examples of what’s possible and serve as inspiration for future CEOs to envision their own business becoming European unicorns. If we want more people to start businesses, we must collectively work to provide the inspiration and visibility that makes them believe they can.
Insights
21/08/2025
David Ewing
Read Time: Min
How to boost entrepreneurialism in the UK
TOPICS:
David Ewing
In the fast-paced world of leadership, where strategic decisions, investor expectations (sorry!), market shifts, and team dynamics dominate your day to day, listening can feel like a luxury. But as recent insights, including the Harvard Business Review article "Are You Really a Good Listener?" (Yip & Fisher, May 2025), consistently show, deeply hearing your team and stakeholders isn't about being polite – it's about driving better decisions, fostering trust, and igniting innovation.
Here are five practical ways CEOs can sharpen their listening skills and lead more effectively:
1. Be present, not just physically
Your attention is one of your most valuable assets. When someone speaks to you - whether it’s a team member, investor, or board colleague - give them your full focus. Close the laptop, silence notifications, and listen without distraction. Presence signals respect and encourages openness, which in turn leads to better information and stronger relationships.
2. Listen to understand, not to respond
It’s tempting to jump in with solutions or counterpoints. But great listeners pause. They ask clarifying questions, reflect on what’s been said, and resist the urge to judge or fix too quickly. This isn’t just polite, it gives people the right environment to make suggestions, share challenges, or give feedback. It’s an essential ingredient for innovation and honest dialogue.
3. Tune into what’s not being said
Often, the most valuable insights lie between the lines. Pay attention to tone, body language, and what’s left unsaid. The more attentive you are, the easier it will be ask the right questions. Similarly, don’t just listen to those with the loudest voices. Create space for others to share their thoughts, and seek out dissenting views. CEOs who actively seek out diverse perspectives are better equipped to spot risks early and uncover new opportunities.
4. Paraphrase to align
A simple but powerful habit: summarise what you’ve heard. “So, what I’m hearing is…” or “Let me check I’ve understood…” This tactic not only makes the other party in your conversation think you’re a good listener, it also embeds in you what you’ve just heard. It reduces miscommunication and builds clarity, something deeply important in high-stakes conversations.
5. Follow through
Listening without action is performative. You don’t need to agree with every suggestion, but you do need to acknowledge it. Whether it’s a follow-up conversation, a change in direction, or a simple thank-you, visible follow-through reinforces trust and encourages future input.
At ECI, we’ve seen time and again that the most effective leaders are those who listen well. It’s not about being silent - it’s about being intentional. Listening is a strategic advantage. And for CEOs, it’s one of the most powerful tools you have.
Insights
12/08/2025
Fiona Moore
Read Time: Min
How to be a good listener
TOPICS:
Fiona Moore
In today’s competitive M&A landscape, Tech DD is not a box-ticking exercise - it’s a strategic value lever. Done well, it can accelerate investor conviction and confidence, and in turn, your company valuation. Done poorly, it can derail a transaction or erode value post-deal.
Duncan Ramsay in ECI's Commercial Team outlines his views on making Tech DD a source of competitive advantage for your business:
1. Tech as a strategic differentiator
Investors are increasingly tech-focussed. They want to understand not just whether your systems work, but how your technology enables growth, resilience, and innovation. A robust Tech DD process should validate and help explain the importance of technology to your business. In order to make the most of this process we recommend you:
- Link technology to business strategy: Can you clearly articulate how your tech stack supports your commercial model? Not only will this demonstrate differentiation to the end investor, but it also helps ease your DD process. If providers can understand the purpose of tech within the business and what the infrastructure looks like, they can start asking the right questions sooner.
- Demonstrate scalability and resilience: Are your systems ready for growth, or will they buckle under pressure? What happens if something goes wrong? If you can tie your tech roadmap to your growth projections it will bring to life how tech underpins your business potential, while demonstrating your ability to mitigate impacts of unexpected issues helps investors get comfort that even if something does go wrong, you can deal with it.
- Showcase innovation readiness: What steps have you taken to drive benefit from AI, automation, or new data capabilities? It will be important to highlight the impacts of what you have done to date, and your readiness to push further, but also to show the process for how your company innovates, how your teams work together to deliver, and how it translates to ROI.
Companies that can answer these questions with confidence stand out in a crowded sales process.
2. New frontiers
Make sure your Tech feels future-proofed. Here is where we have seen the biggest growth in focus in Tech DD in the last five years:
- Cybersecurity: Are you resilient against ransomware, insider threats, and third-party breaches? Can you evidence your risk management processes and protections in place? Can you show a track record of testing (pen tests, phishing, etc) and the actions you took to mitigate findings? How have you responded to prior incidents, and what did you change in your defences as a result?
- AI readiness: How have you deployed AI to date, what benefits have you seen and where do you plan to go next? Have you documented your AI strategy? How do you manage risks that come with AI usage? Are your data governance and model training practices robust enough to support AI use cases? At ECI, AI is part of our investment committee discussions. Being able to show that AI is something considered and with real applications will be beneficial. Your investor is likely to be assessing whether AI is an opportunity or a risk to your business, so it is important to demonstrate how it is enabling rather than threatening value creation.
These areas are now standard in DD frameworks, and ignoring them can be a red flag.
3. People matter: Beyond the stack
Technology doesn’t operate in a vacuum. Investors understand the people behind the platform ae the key to achieving their growth aspirations. Questions are likely to include:
- Alignment: Is the technology department relationship with the broader business collaborative and strategically aligned? Are you an enabler of the strategy, or a resource that is drawn upon to deliver?
- Structure, skills & capabilities: How do you structure your team? What skills and capabilities do you have; and how does this align with customer and business value creation?
- Team experience: What challenges has your team faced in the past and how did they overcome them? How do those past challenges align with the challenges the business has in front of it today?
- These human factors can be leading indicators of future adaptability - or risk.
You should also think about your people when deciding the characters in the room during tech DD. Some are likely to try and answer what they think investors want to hear, some may not give enough detail, whilst others get lost in it. The CTO’s role will be to manage these different approaches, chair the meetings to make sure expectations are clear, and thinking about who will be most effective to answer across which areas. Pre-preparing material long before a deal process is a way of giving yourself the best chance of success.
4. Practical steps to get ahead now
Tech DD is an area where you can start work long before it is needed. Getting the information on a page will likely prompt useful questions that you can then resolve prior to getting started in the pitch process. Here are some useful areas to consider ahead of time:
- Run a Tech DD rehearsal 6 - 12 months before exit. Identify gaps early.
- Map your tech to your strategy on a single slide. Make it easy for buyers to connect the dots.
- Document your wins - from uptime metrics to successful migrations. Evidence builds trust.
Invest in your people. If you don’t think that your team is as strong or as aligned as you would like, now is the time to bring in the right skills and attributes, as you won’t want to be hiring during a sales process.
Tech DD isn’t just about risk mitigation - it’s about value creation. By treating it as a strategic opportunity rather than pure diligence, you can turn scrutiny into strength.
Insights
06/08/2025
Duncan Ramsay
Read Time: Min
How to prepare effective Tech DD
At ECI we've supported our portfolio to make over 80 acquisitions. So what are some of the top lessons we've seen over that time? Investment Director, Skyler ver Bruggen, and North American Growth Specialist, Brett Pentz, share their tips for what you need to make a success of M&A:
1. Clearly defined strategy
Working on deals can be time-consuming and uncertain, so having a clearly defined strategy from the outset is vital. Management teams, and subsequently Boards, need to have open and honest conversations to be completely aligned about direction, sources of growth, and execution considerations.
2. Relationships
The most important factor in any deal (and a primary objective!) is to become a seller's favourite destination for their sale. Meet people face-to-face (especially important for UK buyers to be considered by US sellers), be honest and communicate how much you admire their business. Demonstrating patience and listening to understand seller motivations is important in building that connection as well. The stronger the relationship you build, the higher the likelihood that a deal can be made off market.
3. Keep the Board updated
Be sure to communicate progress at board meetings and key updates in between. Ensure the team is up-to-speed on progress, challenges, and responses to their questions to avoid any surprises – a standard M&A page in the board pack is recommended..
4. Identifying resource levels
Narrowing down and qualifying targets is a big resource burden, which can be amplified depending on your strategy. Is it one or two deals, or a full-on M&A strategy of 15 or 20 deals? If it’s the latter, you’ll need full-time resource. If the strategy is more limited in scope, identifying trusted advisors you can work with is critical. Carve out chunks of their time, schedule regular updates, and most importantly, hold each other accountable.
Skyler ver Bruggen, Investment Director and Brett Pentz, North America Growth Specialist
5. Strategic outreach
One tactical consideration is how you build salience when reaching out to potential opportunities, so you get a response and quickly qualify them. Success can often be found on the back of industry conferences, especially those where you’ve had an active presence – it’s a great way to bump into potential targets or build recognition so that your next message stands out in someone’s inbox.
6. Earn-outs
Structure them carefully, depending on the nature of the industry and the behaviour you want to drive. Earn-outs can work well in a recurring revenue model, where customer based revenue is stable and you are in control of the cost base (to avoid over investment that pushes down EBITDA to drive revenue). However, where revenue is more uncertain, or one-off, there’s the potential for a seller to drive low-quality, unrepeated revenue to hit the earn-out. If the acquisition is competing for the same customers as the buyer, earn-outs should be avoided.
7. Integration
A huge topic in itself, and getting it right is obviously paramount. Broadly it can be split into three buckets:
- Onboarding: define legals, financial reporting, cash management, etc.
- Systems and data: specify, choose and optimise a set of systems for running the business (i.e. Salesforce, HubSpot, Tableau) and develop a methodology for rolling these out. It doesn’t need to be in place from day one, but a clear time frame and plan is essential.
- Platform: Don’t underestimate how big platform integration and migration are, as it can take years to get right. Good integration is all about good people and requires dedicated project management. Be clear about tranches, responsibilities, timings and ownership.
8. Winning hearts and minds
Any acquisition is a time of worry and instability for employees. Spend time with the team at all levels and present an overview of what the new parent company can do for them. Outline the high-level opportunity, the potential career progression and the stability it provides. Clear communication may seem like a small task, but it’s worth taking the time to make sure you get it right.
This article was created off the back of an ECI Unlocked webinar. You can listen to the whole webinar here.
Insights
31/07/2025
Read Time: Min
How to get the most out of M&A
Avantia, the digital home insurance platform and the parent company behind award-winning direct-to-consumer home insurance brand Homeprotect is rewriting the rules of claims management, with the announcement of an industry-first AI tool named ‘Holmes’, designed to tackle fraud and transform home insurance claims.
Fraudulent claims continue to severely impact the insurance sector in the UK. According to the Association of British Insurers, fraudulent property insurance claims cost the industry more than £143 million each year. Current detection methods have limitations, resulting in slower outcomes for genuine customers, higher operational costs, and undetected fraud causing premium inflation for policyholders.
To address this, ECI has supported Avantia to develop a cutting-edge solution designed to disrupt the traditional approach to claims. Built on its existing proprietary decisioning platform, Holmes is trained to use a vast amount of data gathered internally through the customer lifecycle and supports handlers by rapidly identifying potential fraudulent activity, as well as flagging straightforward cases for quick and fair resolution.
In initial trials which have taken place in Q2 2025, Holmes exceeded expectations - improving fraud detection accuracy and highlighting cases ready for quick settlement. Avantia also found that its new AI tool proved to have much broader benefits than its original use case, making recommendations about claim coverage, payment amounts, data capture and next steps, particularly on highly complex claims. As a result, Avantia has identified significant operational and indemnity cost savings from rolling Holmes out to all claims, which will enable the business to scale faster and invest the savings in enhancing their product to the benefit of all customers. In controlled tests, Holmes not only helped make Avantia’s fraud detection rate 6x more effective, it was also able to complete payment calculations with a 98% accuracy and make additional recommendations in 50% of cases which meaningfully improved the outcome of a claim for Homeprotect and customers.
News
31/07/2025
Read Time: 1 Min
Avantia launches industry-leading AI tool to tackle fraud in home insurance
TOPICS:
Avantia
We chat with ECI's summer intern, Enayeth Hussain, about how he discovered our internship through upReach, his advice for future applicants, and the most surprising thing he has learned about private equity.
Q: How did you first come across ECI’s internship partner, upReach?
upReach is all about helping students from less advantaged backgrounds access career opportunities they might not otherwise get, whether that’s through mentoring, skills development or even supporting you with basic things, like getting clothes for interviews.
Coming from Camden, a lot of people I knew were already part of it, so I saw how much it had helped others, and I wanted to be part of that too. Through the programme, I had a mentor in real estate private equity and now this internship. That kind of access is just incredible when you're a student. You get to speak with people in the industry, learn from them, and start to build your network. It really helps bridge the gap.
Q: What was the application process and interview with ECI like?
When I saw ECI on the upReach internship list, I knew that I had to apply, getting any kind of experience in private equity as a student is incredibly rare, and I could see ECI had an amazing track record. The submission was about why I wanted to work there, the skills I’d bring, and examples of teamwork or innovation.
The interview itself was actually a really good experience. It felt more like a conversation. I was asked about my interests and my studies – it wasn’t about catching me out or testing technical knowledge. I prepped in case, as I’ve had a few interviews where they say “no technical questions” and then ask for a full DCF breakdown, but I got the sense early on that ECI was genuinely interested in hearing from me and supporting my learning. That meant a lot.
Q: What advice would you give to other applicants in the future?
Do your research properly. I’d say understand what private equity is, but more importantly, understand where ECI sits within that. Learn what mid-market PE means, what kind of companies ECI invests in, and really get a feel for the portfolio. Private equity is about finding and growing great businesses, so if you can talk about a few of them, explain what they do, and why they interest you, that’ll really set you apart.
Q: What kind of projects have you been involved in since joining?
One that really stood out was a project to write up an initial investment memo for a company. I went through the company’s background, growth, SWOT analysis – it felt like something I would do working here. But, what was really great was I was then asked to join the team meeting and share my perspective, and it surprised me how much they valued my opinion. And that happened in my second week! Due to the younger end customer, I was able to show some different sources for reviews such as Reddit as I knew they wouldn’t be leaving them on TrustPilot. It felt like I was contributing, not just observing.
Q: Has anything surprised you about private equity?
Definitely how much of it is relationship-driven. I always assumed PE was more number crunching, but what I’ve seen is that relationships matter just as much, if not more.
There are conversations happening now with businesses ECI might invest in years down the line. That long-term thinking and trust-building really stuck with me. It’s also confirmed that I want to work in PE in the future. There’s space to be entrepreneurial, to build something, and to get results in your own way. I love that balance between analytical thinking and relationship management.
Q: What are you looking to do next?
I graduate this month, and two weeks after finishing at ECI, I’ll start a full-time role as a European Capital Markets Real Estate Analyst. It’s a bit like investment banking but for property. My time at ECI will be immensely valuable in framing thinking, but also it will be a great stepping stone to move into Real Estate Private Equity if I want to change in the future.
Quick Fire with Enayeth:
What did you want to do when you were five?
A striker for Arsenal until a kid in Year 6 joined who played for QPR’s academy made me realise that the dream might already be over...
What do you do to unwind?
I’m a big fan of “bed rotting”, which is just lying in bed on my phone. It’s my favourite hobby, I’m not even joking.
What’s your song for the summer?
RS6 by Dystinct ft. Morad
If you had to go on a TV show, what would you choose?
EastEnders. Everyone there makes terrible decisions, and I think I could help them out.
Do you have any hidden talents?
I play kabaddi, which is a South Asian sport that’s a mix of rugby and tag. I was captain and president of my university team, and I am part of the England set up, although we don’t really exist at the moment since we haven’t been invited to any tournaments. So maybe not that hidden… but definitely a big part of who I am.
Insights
28/07/2025
Read Time: Min
“Quick Fire” with Enayeth Hussain
With the summer holidays in full swing, it's the perfect time to dive into a good book, whether you're poolside, on a plane, or enjoying a quiet moment in the garden. From thought-provoking non-fiction to brilliant storytelling, here’s what the ECI team are reading this summer:
Jin Ni Ooi
The Hard Thing about Hard Things
I picked up The Hard Thing about Hard Things after a colleague at ECI recommended it, and it quickly became one of the most insightful business reads I’ve come across. Ben Horowitz doesn’t shy away from the realities of running a company. Instead, he dives into the gritty, unpredictable side of leadership that rarely get talked about. I found his honesty refreshing, especially when it comes to making tough decisions and dealing with failure. There’s a great section on managing through chaos that’s stuck with me – practical, direct, and weirdly reassuring.
Chris Watt
The Lonely Skier by Hammond Innes
This was a thank-you gift from a friend for organising a ski trip, and it turned out to be quite a gem. The Lonely Skier is a 1940s thriller set in the Dolomites just after the war, where a down-on-his-luck ex-soldier is sent to a remote resort to pose as a screenwriter - only to get caught up in a hunt for hidden Nazi gold.
At well under 200 pages, it’s ideal if you’re busy or just need something pacey and instantly absorbing to clear your head. The setting is tense and atmospheric, the characters are boldly drawn and very much of their time, and the whole thing moves at a real clip. Hammond Innes - himself a former artillery officer - was known for his well-researched novels and his knack for creating memorable characters and compelling plots.
Not exactly business reading, but a great escapist holiday pick if you’re after something short, sharp, and gripping.
Simona Everts
Blue Sisters by Coco Mellors
I think having sisters made Blue Sisters by Coco Mellors especially engaging for me. The book follows three sisters reuniting after the death of their fourth sister, and its real strength is how it captures the complexity of sibling relationships. Whilst some parts felt a little far-fetched, I think that’s what makes it a great holiday read. It also tackles serious themes like addiction and depression in a way that’s both readable and emotionally honest.
Rich Pearce
The Wide Wide Sea by Hampton Sides
The Wide Wide Sea tells the story of Captain Cook’s third and final voyage. Not just the big discoveries, but also the growing tensions and mistakes that led to his death in Hawaii. He's a character who everyone has heard of and his legacy is increasingly debated and controversial, but someone I didn't know much about. It's told through the eyes of his crew and the people he met from their diaries, letters, and verbal histories. This approach makes it very real. You’re taken right into the action, from freezing seas to tropical islands, and you see how the journey affected both the crew and the people they met. It’s a fascinating and very human story, and well worth a read
Olivia McGee
The Thursday Murder Club
I found The Thursday Murder Club by Richard Osman to be an enjoyable and uplifting read. I loved the dynamic between the main characters, especially with it being told from Joyce’s perspective. Her voice is refreshingly light and engaging – it gave the narrative a unique charm.
What surprised me most was how hopeful the book made me feel about ageing, as it presents life in a retirement village as full of possibility, connection, and even adventure. While the murder mystery itself is cleverly constructed, it is the characters who truly bring the story to life. With a film adaptation coming to screens soon, and more books in the series, I’m looking forward to seeing how the story continues to unfold, both on the page and on screen!
Insights
24/07/2025
Read Time: Min
What are ECI reading? Our summer reading list
We're delighted to launch our first fundraising event in partnership with our charity partner, the Wilderness Foundation UK: ECI Sleep Out in the Woods.
On 7th August, a group of eight ECI team members will be swapping their beds for sleeping bags and spending the night in the Foundation’s 92-acre woodland. They will be completely alone, without technology, and surrounded only by the natural world. Each person will camp in their own secluded spot, embracing solitude, reflection, and a deep reconnection with nature - all to raise vital funds for the Wilderness Foundation and the life-changing work they do.
The Wilderness Foundation is a fantastic charity focussed on protecting wild spaces and transforming lives through nature-based therapy and education. Their programmes support vulnerable young people and adults struggling with personal or mental health challenges, helping them build resilience, confidence and a deeper connection to the world around them.
We’re proud to support their mission, and if you’d like to support the team and this brilliant cause, you can donate here.
News
17/07/2025
Read Time: Min
ECI launch first fundraising initiative with Wilderness Foundation
TOPICS:
ESG
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