Thank you, ladies and gentlemen. Good afternoon. Welcome to the IP Group Capital Markets Day. There are no planned fire drills, so if there is a fire alarm, please head out through the fire exits where you'll be greeted by members of the team. That concludes a very short intro, so perhaps if I may, Greg, hand over to you, sir. Thank you.
Thank you very much, Mark, as always. We'll get that noise in the room sorted. Welcome to everybody online. Welcome to everybody in the room. Thank you very much for braving the British summer, which, of course, is the thing that you have to do for Capital Markets Days in the city of London. I have three bits of good news for you today to start proceedings. The first is the sun's back out again, so everyone who arrived and got drenched sort of like we did on the way in, the sun's back out again. The second is, you'll know if you're a follower of IP Group or hopefully a shareholder of IP Group or an advisor. We do a lot of our engagement with the city as part of our six-monthly reporting cycle.
For a business like IP Group, the life cycle of many of our businesses is an awful lot longer than this. The opportunity we have today is to look a bit beyond the six, twelve-month reporting cycle and think a bit about what is possible, what is going to drive value over the longer term, what our competitive advantages are over the longer term. That should be something different that you have not heard for a while from us. The third bit of good news is normally on those events, it is me droning at you for up to an hour and engaging with questions and all that sort of stuff. The best bit of good news is I am only doing the first 15 minutes.
You get exposure to not just some of the IP Group team, which, of course, we're very proud of, but also a number of our portfolio companies, some of the most exciting portfolio companies we have in the portfolio. We try to pick a selection, and there's one that's in the sort of the top five or so and a couple that are right down in the sort of other portfolio towards the back end. Also, I'll flag we've got five of our companies who are exhibiting today but not presenting. I really encourage you to understand more about the business, the types of businesses that we're backing, and crucially, the kind of market opportunities that they've got by engaging with them outside in the break.
For those of you online, the plan for today is that this first hour, which is an overview of the opportunity we have, our investment strategy, and our sourcing methodology, that is all recorded live. We will be streaming that. We are then going to cut to a break here in the room, and we will go and have coffee, a bit of chance to mingle with the companies. We are going to come back here. There will then be three company presentations. We are not going to stream those live to everybody, but we are going to put them in bite-sized chunks, and we will release them over the next sort of week or two. Again, consistent with our plan to try and make everything as transparent to our retail holders as possible, we will be releasing those videos over the course of the next couple of weeks.
First hour live for the overview of the company, and then we'll be releasing the company presentations over the course of the coming couple of weeks. That's how the agenda will run, as described. I'm only going to take sort of 10- 15 minutes because many of you will have heard some of this before when you've listened into our results calls. I really want to sort of set the context for why we're bothering to do what we do at IP Group. A good pitch should generally have, what are you trying to do? Why are you here? What problem are you trying to solve? What are you addressing? What's the issue at hand that you're trying to address? Then crucially, why now? Why invest your money now? When you listen to other presentations, hold those things in your mind.
We often look at our companies in that light. What is it? Why now? Why invest your capital now? The why exists is really, really simple for IP Group. The way we describe it is we evolve the power of science for a better future. I guess put more simply, the idea is we are a business which finds, identifies, grows, scales, and exits transformative businesses based on science and technology. It's pretty simple in the telling. It's flipping hard to do in practice, but hopefully we'll give you a flavor of how we do that and some of the successes and some of the companies that are on that journey over the course of today. There's the what's the problem we solve? If you look at the portfolio as a whole, the problem that we solve, some of them are massive.
They're problems like the energy transition, the burgeoning cost of healthcare, the big changes in the technology that we need to be able to deliver the promise of the Fourth Industrial Revolution. That's all down in the portfolio companies. What do we solve at the IP Group level? We solve the lack of capital and the lack of experienced investors to go from a technological concept to a business that you would recognize and hopefully a business that scales to create lots and lots of economic wealth and lots and lots of real-world impact. That's the problem that we solve. There's the question of why now? What's the trigger point? I hope that what you get from today is this better understanding of the current IP Group investment case. There are sort of three bits you have to believe.
The first, there is a really significant value potential in science and technology. And specifically today, I'll talk much more about sort of U.K. science and technology. We operate in Australia. We have some spinouts in Europe, but predominantly U.K. I'll frame the opportunity around the sort of U.K. science and tech opportunity. The second thing you have to believe is that IP Group is very well positioned to exploit this. I'll tell that partly in the structure, and then I'll leave it to you to judge the team and the companies that you see to articulate and to further exemplify the why is IP Group very well positioned to do that. And then the third is this sort of attractive shareholder opportunity. We have been coming off the back of a risk-off environment for the last three years or so. You've seen it in the share price.
We've felt it in the share price. It's a very material part of my wealth is in IP Group shares, as you would hopefully expect as shareholders of the business. I feel that pain, and we've done an awful lot, we think, to get the story out, to be efficient with our capital and buy back shares where they're cheap. We've actually most recently just finished the last tranche of our buyback, and we'll be adding another GBP 20 million or so to that buyback program to make sure that we keep going in line with the commitments that we made earlier this year. The real story, the real growth opportunity is in the portfolio and in the portfolio companies.
Hopefully, as capital starts to return, not just to the listed markets, but to the private markets, maybe in more volume than we've seen in the past in the U.K., we are incredibly well positioned to capture that, both in our existing portfolio, but for more investors who want to access this kind of opportunity. Why do we operate in this space? Mark's going to talk about this, so I'm really just sort of setting the scene. We operate in deep tech. We're a specialist deep tech investor. Many of us do what we do because we care about making a big dink in the universe or a little dink in the universe, but making some positive difference. I'm a mathematician. I was trained as an accountant. I'm a numbers guy. I'm very financially minded.
We are doing this to be very, very clear to make financial returns. One of the key things that you want to do when you're making financial returns is to operate in an area that has very big market opportunity. Each of the three sectors in which we, the subsectors in which we operate, have very significant market opportunities. The companies that you'll hear talking later will talk about their specific TAMs. I think you'll be encouraged to see the scale of the TAM that is available to each of those businesses. The overall numbers are very significant. Mark will talk to these a little bit more, so I won't spend too much time on them. The second thing is, you have very big market opportunities.
The second thing is, as many of you will know, the U.K. has got some particular strengths in research and innovation, particularly in the university sector. There are various ways of cutting this. One of the ways that the FT articulates is there are four of the top 10 universities in the world. There are something like 15 of the top 100 universities in the world here. We have got this incredible pedigree. When you think about the current geopolitical landscape going on, the U.K. has an enduring commitment over hundreds of years to being seats of learning. This is not a partisan thing. It is not saying that the Brits or the English are particularly good at science more than anybody else. We have had a rich tradition of the best scientists in the world coming to apply their trade and study here in the U.K.
Whenever we're speaking to government, we always make it very clear that that policy around immigration supports the ability for that to continue. We're also increasingly saying, make sure that the talent can also be brought in to help support and commercialize those businesses. I think the recent past, the last sort of six-nine months, some of the talent that we've been bringing into the portfolio, you'll notice a number of them have got U.S. accents. I think there's a real moment in time for the U.K. to bring talented, experienced individuals to help scale our businesses here in the U.K. with that rich experience. We can offer us in a sort of a stable environment, hopefully a growing and attractive value environment here in the U.K. We've got this sort of really interesting science base.
Another bit of good news, I suppose, for today. Again, many of you will know this, but it does not hurt to sort of admit that we are good at some stuff. We actually are now leading in Europe at creating companies from this. That is things like the EIS scheme. We will be talking shortly as an exemplar of our sort of magic source, our sourcing business here in the U.K. and Parkwalk. Some of those incentives have led to an incredibly rich and vibrant ecosystem in the U.K. for creating spinouts. We lead in Europe in this, and we punch above our weight in sort of relative terms versus the U.S. and other jurisdictions. The fundamental innovation and the creation of companies is pretty good.
We at IP Group would make the claim that we are the leading platform to access that innovation. We started this industry really in the U.K. about 20-25 years ago. Now, 20-25 years on, we still remain the largest player. We're about 20% of the whole market if you look at the sort of capital into spinouts here in the U.K. The access that we have, and I'll let Anne talk about this, is largely now done through some clever partnerships that we have with a number of the leading universities in the U.K. through some alumni funds. We back a number of accelerators. We've also been founder investors, seed investors into some of the vehicles that now do this at a dedicated university level. Oxford Science Innovation, which is now Oxford Sciences Enterprises, we were a founding investor in.
Same thing for Cambridge Innovation Capital. We've helped to create this ecosystem and probably the most experienced and still the most active in this area. It's a really leading platform to get access to this space through. The point around having innovation and the point around being able to start companies, you will often hear expressed as there is this sort of funding gap in the U.K. at the scale-up stage. I'm pretty confident I'm not telling you anything new if you've been reading any of the papers, the FT, The Economist, any of the sort of the popular press as well. There is this sort of scale-up funding gap. Of course, in true British style, we do not present it as an opportunity. We represent it as a big challenge.
We at IP Group think there's a really interesting opportunity here to direct much more capital at the places where it's needed and to explain what's going on in this chart here, because I think the scale of this surprised me actually when we pulled it together. We did some work with PitchBook. We came up with an analysis that looked at sort of deep tech companies. You can see the definition at the bottom. We looked at the money raised in total by those businesses here in the U.K. over the course of different funding rounds. Seed rounds, there was about $ 8 billion raised over 10 years. That was okay. That's quite good. Get to Series A. Of course, the Series A rounds are bigger. The companies are surviving. The number goes up, almost doubles to $15 billion.
Get to Series B. It is interesting. It is still going up, but it is sort of tailing off a little bit. You get to Series C and D and E. The total capital has almost fallen off a cliff. The amount of money being raised into Series E is less than the amount of money going into seed, which seems completely counterintuitive. What is going on there? We think a combination of factors in the Series A and the Series B, because of the lack of scale-up leads here in the U.K., there is an opportunity for non-U.K.-based investors to come in and lead the round. The gravity of the business starts to shift. Because of the lack of scale-up opportunity, the businesses get to this stage, and actually an acquisition is the best route for them.
There is a real opportunity to make that chart continue to go up. There needs to be some activity on the U.K. side, which we are trying to play a part of, which has been well recognized. I just thought this was quite stark. The other thing that you can see on the slide is the proportion of domestic capital in those rounds drops off quite significantly from 37% in the seed rounds down to less than a quarter by the time you get to Series C, which is partly explaining that. There is a real opportunity here. We talk about it as a gap, but there really is a big opportunity for the U.K. to create scaled businesses. The good news is this is now starting to be picked up. We have had various iterations of this slide over the last sort of couple of years.
The interesting thing is that the trend actually is starting to be towards both public and private policy starting to coalesce and align. Even the government pronouncements and policy is starting to align, which is always sort of quite helpful. Just in the last couple of weeks, there have been some quite big announcements. One was the industrial strategy. I'm sure there are things that we can criticize. From an IP Group point of view, they pointed at eight sectors that the U.K. is going to be internationally competitive in. Very helpfully, clean energy, digital tech, and life sciences were three of those eight sectors. Funding for the British Business Bank, which does about 20% of all venture investment in the U.K. and who we work closely with at a direct level, was given more funding.
In the release of the industrial strategy, it was announced that $4 billion of that would be directly focused at trying to leverage capital into the industrial strategy sectors. Again, that's quite good news, quite consistent. The National Wealth Fund, which used to be the National Infrastructure Bank, is now very clearly aimed at a number of those subsectors, and interestingly including resilience and dual use for the first time. We've definitely seen a pickup in the interest in direct investments into companies that are strategically relevant, shall we say, to the U.K. with quite a broadly drawn definition. We're hopeful that the BBB and the National Wealth Fund are going to play an increasingly directed role in funding companies such as ours to scale up. That's sort of one element of sort of government action.
The second is the pension schemes bill. This has been sort of gathering some momentum since the Mansion House Compact a couple of years ago. I would definitely say we're having some more practical conversations with potential investors. I mean, we've benefited for a number of years from some of the more forward-thinking pension funds investing in us. I'm sure Railpen are here somewhere, but Railpen are one of the few DB schemes that's allocating sort of significant amounts of capital to risk here in the U.K. and equity here in the U.K. We're very proud to have them on the register, but there's a big opportunity for there to be more capital coming into the space. Hopefully, things like the pension schemes bill, which are aiming to consolidate pension funds, create these super funds.
Crucially, I think, which is something that led to quite a sea change in Australia, is this trying to shift the focus away from the fees that are charged to the net return, the value for money, whether that will flow through in exactly the same way as it has done in Australia over here. We're hopeful that it will do because often when we're speaking to investors trying to get across the fact that you want to get outsized returns, even if you have to pay a bit more fee because it's very energy intensive, is the right thing to do for returns overall. I did put on there the backstop thing. I mean, there's big debates over whether it's a good thing or a bad thing to be mandating pension funds.
I heard Rachel Rees talking just last week, and she said, "I don't expect this to be needed at all." I think it's sort of there as a, "We would very much like this to be a carrot, but if it's not, I'm reserving the right to sort of have a stick." I'm not going to get into the debate as to whether that's a good thing or a bad thing. It's clear that the industry is moving sort of in that direction, as exemplified by the Mansion House Accord. Top marks for anybody who knows the difference between a compact and an accord. I don't know what the difference is, but the accord includes very similar things.
Crucially, the idea is that there will be somewhere between an extra sort of GBP 4 billion, GBP 5 billion, GBP 10 billion, maybe, worth of equity capital flowing in directly into U.K. sort of early stage and venture over the course of the next five, seven years. That is good news for us because we've got a lot of portfolio companies that would benefit and which will generate returns. We manage some assets, which I'll come on to. Hopefully, there could also be allocations into IP Group direct too, given the opportunity. Why did I say we're well placed? This won't be new news to you, but to set the next couple of speakers in context, we have this sort of differentiated sourcing engine here in the U.K. That's about GBP 500 million worth of capital. Anne's going to talk about that shortly.
We have a permanent balance sheet. This is where the vast majority of shareholder value is. If you look at the share price today, it's pretty clear that we don't have any credit for having some scale-up funds and some early stage funds in our share price. In fact, there's a reasonable discount to the NAV per share in the middle bit. Mark's going to talk specifically about some of the companies and the themes that we're following in the middle bit. I haven't got a big piece on this, but Mike, I'm very pleased. We've got a bit of an Aussie contingent over. Fortunately, this week, Mike will be introducing one of our companies from Australia, Hysata. We'll just talk a little bit about some of the funding access that we have in Australia.
We're very well placed to be able to offer things like the work we've been doing for superannuation funds in Australia to manage a few hundred million GBP. We're well placed to be able to do the same thing here in the U.K. The differentiated U.K. sourcing, Anne obviously can't put this slide up of lots of awards, but if you measure success on being able to consistently raise capital, being regularly the biggest investor in the space, or indeed the number of awards that you win, Parkwalk really is a sort of a jewel in the crown in terms of U.K. sourcing. We're very proud to have that as part of the group. I think it's a bit of an underappreciated part of the group, and hence the idea to give you a bit more exposure to that today. The team is really good.
We've got a really world-class team here at IP Group, and they span different countries, different stages, and different areas of expertise. I've got each of the companies is going to be introduced just briefly by a number of our members of staff so you can get a bit more exposure to the strength and depth that we have within the organization. I'm not sure there's another organization in the U.K. that's actually got this amount of experience of investing in deep tech, early stage companies. I think one of the things that we've learned over the years is you definitely need to have people who are experienced and domain experts because it can be quite tricky, and you can be sold a perpetual motion machine if you're not careful. This is a core part of the value proposition.
We have got a decent track record, actually, of realizing value. I mean, the NAV goes up and down from year to year. The thing that we measure success on ourselves is what is the cash-on-cash return that we generate for our investors. We have got a decent track record. We are now up to four companies that we have fully or partially exited at values of more than $1 billion. I cannot claim that they are necessarily all unicorns because some of them were quoted. I am being good with my definitions. We were very proud that in the last little while, the last month or so, Hinge Health listed on the New York Stock Exchange, a very successful listing. We were able to take some money off the table as part of that IPO, and it is trading very well in the aftermarket.
The plan is that we will get liquidity in that company as we come out of our lockup. That is a bit of further good news. The bit that you are going to get some exposure to today represents about sort of nine-ish P of the NAV per share. As I said, we have got one business that is ordinarily in that sort of top 5-10 companies, Hysata, and then Intrinsic and Genomics are a little bit further down in the NAV per share. I think you will leave today with a view that each of these has got really significant value potential to add, not just NAV per share, but returns to our shareholders. Hopefully, this gives you confidence in the sort of the medium-term opportunity for IP Group. They will be introduced in the second half.
A quick shout-out for our companies in the room. We're very appreciative. I mean, it's a tough job to be setting up and running these early stage businesses. We are very appreciative that we've got teams from five of our companies here today. Please do go and speak to them. Some of these are co-investments between Parkwalk and the balance sheet. Some of them are Parkwalk investments, some are balance sheet investments. Each of them has got a really interesting market opportunity. Some of them have got some products that you can play with. I would definitely recommend going and having a go on the Audioscenic spatial audio. That's very cool. I was disappointed that Dom wasn't allowed to bring a banana to cut and produce some smoke.
We decided that on a risk basis, getting us all evicted from Gresham Street was probably a bad idea. He has some sort of pseudo smoke that you can look at. Each of them are very interesting businesses. Please do speak to those companies and get an idea of the opportunity. With that, I want to thank you all for being here. Thank you for being online. Please do take advantage of being able to talk to the team and talk to the companies. I am going to hand on to Anne, who is going to talk to you a bit about our Parkwalk business.
Thank you, Greg. Let me get rid of this huge photo and move on to that one. Yes, my name is Anne Dobrée. I am here from Parkwalk, which is the foundation layer of the IP Group.
We bring in much of the deep and wide deal flow of exciting companies. For myself, a bit of background, I joined Parkwalk about a year ago, but I spent the previous 25 years at the University of Cambridge commercializing technology, supporting spinouts. I took the investment of a university's own balance sheet money in spinouts from three companies a year and kind of GBP 400,000 in 2010 up to 30 companies and GBP 5.5 million in 2023. I set up the first sidecar fund in a university of a joint EIS fund with Parkwalk in 2012, hence my long association with the wonderful Parkwalk team. I was part of a team that got university permission to set up Cambridge Innovation Capital. I also most recently founded Founders at the University of Cambridge.
Then I thought, after all that, it was time to have a slight change of direction and join Parkwalk. That's a bit about me and just shows you how great Parkwalk's relationships are with university teams and that I like them so much. I joined the company. We are very proud to be the most active investor in university spinouts in the U.K. This is data independently from Beauhurst and Royal Academy of Engineering. As you can see, Parkwalk have done 325 deals since 2015. That has contributed to rounds bringing, I think it's GBP 2 billion into this asset class, into those companies. Even more excitingly, when you look at the investments of the group as a whole, you can see we've got 430 deals in total, which puts us well ahead of our competition in terms of activity in this space.
Wrong way, sorry. Parkwalk Vote is different to the balance sheet funds in that we are an Enterprise Investment Scheme-based fund. We are investing money on behalf of individual high-net-worth investors. We have a focused investment strategy that is solely U.K. university-based. We invest across all technologies vote in that space. We are tech agnostic from quantum all the way through to life sciences. Where our experience lies is in for 15 years plus as a company investing in this sector. For our individual investors, this gives them access to deals that are really just totally impossible to get into otherwise. Unless you're a Cambridge Angel, perhaps, but otherwise, it's really hard to access this asset class. On average, our opportunities fund, which is an evergreen fund, has GBP 50 million a year that we are investing.
Currently, that's 120 live portfolios in our company. We've invested over GBP 490 million to date, I think. Greg mentioned our assets under management. Excitingly, we've had GBP 166 million returned to our investors of cash from our exits. Sifted has also recognized us as being great at this. Our reach is all across the U.K. We invest from Aberdeen down to Southampton, from Cardiff across to Norwich. All of these universities have different strengths, which are very exciting to get involved with. We've put a lot of energy into building our relationships with the universities, the tech transfer offices, the academics, their accelerators, our co-investors, because at this very early stage investment, it really is a relationship game. Obviously, much of the activity in the U.K. is based in the Golden Triangle because that's where the ecosystems are.
70% of our deal flow comes from there. Partly, that is also because we have pre-seed funds in association with the universities of Oxford, Cambridge, Imperial, Bristol, and now with Northern Gritstone, which act to supply small amounts of investment into these ecosystems at the pre-seed stage, thereby feeding the funnel even pre-Parkwalk so that we are already linked to and understanding these companies by the time we see them for investment. I'm sorry, I keep going the wrong way. As I mentioned, you may have seen this week our collaboration with Northern Gritstone. This is taking our links with universities up to that northern arc of Leeds, Liverpool, Manchester, and Sheffield. There is a lot of activity happening in that space at the moment to grow regional economies and ecosystems.
With our collaborative fund in that space, we'll have early insight into those companies as they grow up. Why is university technology so exciting? Why are we bothering with all of this? Some of this, obviously, Greg has touched on, but as he said, the U.K. does have great universities and great research institutions that lead to unique, impactful, economically impactful, and hopefully valuable technology spinouts. Oxford, Cambridge, Imperial, and UCL are in the top 10 universities worldwide. We've seen in the past how academic research is at the heart of many of the innovations of our lifetime, whether that's monoclonal antibodies leading all the way through to next-generation sequencing or quantum computing all the way through to machine learning and AI. All of these technologies are generated from blue-sky research. Often that happens by complete accident.
One of the famous stories in Cambridge is that OLEDs, the organic LEDs that you have in your TVs nowadays, they were discovered by accident by a postdoc working on plastic electronics when he found his experiment glowing in the dark. That is a true story. The other great thing about university technologies is they have been significantly de-risked by the time they get to us. Most of these inventions have had 10, 20, or 30 years of grant funding through the academic development. They've been peer-reviewed. They've had their tires kicked. When they get to the stage of being a nascent commercial idea, the university tech transfer team will get involved and provide much more support to bring them up a level in terms of commercialization.
They'll be looking at what is the market, how can we access it, what is our IP strategy going to be, how can we file patents, how can we bring in more commercial knowledge to the team and expand that team to make a successful company. Often, very importantly, they will have access to proof of concept funds that can develop the technology readiness level up to a higher standard. When we get involved with our investment, we bring our expertise and knowledge to the table to work on developing that spinout that has then been formed, getting them to concentrate on their go-to-market, getting them talking to customers, expanding their team with our networks into management, and bringing in co-investors such as the balance sheet funds to take them through to growth and exit.
To drill down a bit more into how that pathway works, Parkwalk, as I've just said, will invest at the kind of seed A, B round stage. We will hold investments all the way through, but the size of the round might be getting a bit beyond us. What that investment stage of our EIS funds does is give the group as a whole great insight to these companies as they grow up. When they come to the IP Group balance sheet fund for investment, and we have Quantum Motion in the room outside for you to talk to who are at that stage, when they come to the balance sheet, the group as a whole has had many years of close due diligence and involvement with these companies.
We have far greater understanding of the technology and the team and their prospects than we would have if something coming in off the street. Obviously, as the company develops further, the managed funds can come in and invest at a growth stage through to graduation. We are constantly having conversations around this. We have monthly investment team meetings. We have regular water cooler moments where we talk about the companies that are coming through and how exciting they are. At adsilico, who are also here in the room, is a great example of a company that's at the early stage in the pipeline, but our balance sheet funds will be keeping an eye on it as it matures and hopefully invest as it gets to the right stage.
All this deal flow and our relationships brings in about 1,000 opportunities a year or more that we look at on the Parkwalk side of things, not just from these funds, but also direct from our relationships with co-investments, as I said. We're very picky about which ones we invest in. This is where our experience across many companies in this sector allows us to concentrate on those few companies that we think have the right teams and technology for success. Once we've invested, we will bring in our existing networks and ecosystems to help them develop. We'll link them up with co-investors to form syndicates for further funding rounds. As I've already mentioned, we can use our own and the wider IP Group's resources to call in on experienced founders and management because often the commercial team will need building out from its university base.
For our underlying investors, one of the most important things we bring to the party is, of course, the EIS fund structure, which provides some kind of, I guess, insurance or upside on top of the high risk of investing in this asset class and was really designed by the U.K. government to make it much more feasible and reduce the risk of investing at this stage. It is now a very embedded and crucial part of the U.K. tech ecosystem. I think the stats show that over 48% of U.K. unicorns have had EIS investment at some stage in their journey. That was a lot of dry, boring facts for you. Now I am going to talk about the more interesting bit, which is some of our companies. The first one of these is Accelercom, which is totally out of this world.
I mean this literally as it's wireless communications in space. Accelercom came out of signal processing at the University of Southampton. What their technology enables is the use of existing space-hardened chips. You may not have known, but chips have to be space-hardened to go up in space. I'm talking silicon, not McCains, obviously. Their software allows you to make existing hardware systems into base stations for 5G communication. What does that mean in real terms? It means that your gaming will be much quicker and smoother. Far more importantly, it means you can get 5G to the most remote places of the world. Whether that's for defense reasons or just for getting 5G out to the most remote places in the world. Oh, sorry. Our last investment round was in the Series B, which was very recent, of $15 million.
We were joined by Swisscom, Hostplus, and of course, the balance sheet. We are looking to great things from Accelercom. Slightly more down to earth, next up, we have Cytora. Cytora are using generative AI in the insurance space and were founded by four young entrepreneurs from the University of Cambridge. I first invested in them with a Cambridge hat at the very early stage of their journey and then got Parkwalk involved. Their last investment round was a Series B of $25 million. What they are doing is just brilliant because their generative AI system allows you to de-risk risk processes, digitize risk processes in the insurance industry. By digitizing your risk process, you can dissociate the growth of your risk management from your number of people, and therefore, your profits can grow better than your expenses. That is my best way of explaining it.
They're doing brilliantly, and our co-investors in that company are EQT and Cambridge Innovation Capital. Another Cambridge company, not that I'm biased, it's just that I know these companies better than some of the others. Cambridge GaN Devices, I am biased about because it's great. It is a company that is developing next-generation gallium nitride, which is what the GaN bit is, gallium nitride chips to replace silicon. It is a spinout from the Centre for Applied Photonics and Engineering from the laboratory of Professor Florin Udrea. It's his fourth spinout in the power electronics space. He's a bit of an expert. Their gallium nitride power devices basically allow you to be much more efficient in your power handling. I mean, the most obvious example, but not the best market, is your power charger for your laptop that will have a power device in the block.
Gallium nitride is a much more efficient way of handling that. Where it's really exciting is opening up power management in electric vehicles and in data centers. They're now on Series C. We recently raised GBP 32 million from ourselves, British Growth Fund, British Patient Capital, and Foresight. Last but not least, as I mentioned earlier here in the room today, you can go and see their really cool beating electronic hearts, is adsilico, which is based on computational modeling from the University of Leeds. What adsilico's great expertise enables you to do is to make a proper computer model of a human heart. That can be transformative for the development of medical devices such as mitral heart valves. It goes way beyond that because you can't just create one heart from the human data that you have. You can create multiple virtual twin hearts.
Then even better, you can go a stage further and make chimeras of those virtual hearts. If you're wanting to test a valve in 100 hearts with anatomy that's very much more representative of the population, this is now possible through an in-silico route. They're a very early stage company that we got involved at the seed round alongside Northern Gritstone. Just to finish up, companies are exciting. Exits are even more exciting. As I recently, a few minutes ago, said, we've returned over $166 million to our underlying investors. That has included some stellar exits such as Cambridge CMOS Sensors, Florin's previous company, YASA, Refine. There's a number of stars in the portfolio. You'll also see that we do secondary exits for our underlying investors.
If there's an opportunity in an oversubscribed round with externals coming in, it's great to be able to return some of the money to those individual investors if the return level is correct for them. The last couple of years have been a bit more tricky, but it's great to see that 2025 seems to be going off at steam. In the first half of this year, we've already announced four exits. That is all from me. Just to summarize, Parkwalk is the U.K.'s leading investor in university spinouts. We act as a fabulous pipeline to the wider IP Group and the balance sheet and managed funds. We also return great returns to our underlying investors. Did you want to do questions? We weren't. Okay, sorry. Over to Mark then.
Good afternoon, everyone. Thank you. Very inspiring presentation.
I'm strangely drawn to the idea of producing space-hardened oven chips. I wonder if we can find an opportunity in that area. I'm Mark Reilley, Managing Partner of the portfolio across IP Group. Hopefully, you're very familiar with what we look for when we're doing new investments at IP Group. We're looking for technologies that have global scope and world-changing impact that can really have a deep impact on the world and a positive impact on society. We're looking for differentiated technology that by its nature is defensible and different to what's come before. Usually, these companies have developed these technologies developed by highly skilled technical founding teams. That's usually a characteristic of our companies and our portfolio.
We do this across these three huge mega trends, these sort of trends, societal mega trends that are creating huge economic opportunity. The first being the transition to renewable energy away from use of fossil fuels, which is a $2 trillion market opportunity expected by 2030, growing at about 8% at the moment. We do it in healthcare, aging population implications for societal health. Again, a huge more than $2 trillion opportunity globally by 2030. Finally, this transition to an ever more digitized world, robotics, intelligent computing, another huge market opportunity, $4.6 trillion opportunity by 2030. This is an increasingly popular activity in Europe. The IP Group has been doing this for a very long time. We celebrated our 20-year anniversary a few years ago. We've been innovation investors since before.
That was really a term since before deep tech was a thing and before spinout investing was an industry. It is becoming much more of an asset class now. This is a report from McKinsey that McKinsey produced recently about European deep tech. They said they are witnessing a significant surge in both innovation and interest that is leading to this wave of potential scientific and technological breakthroughs. They talked about the European share of the investment that is going into innovation investing across the world has increased quite rapidly over this sort of five-year period between 2019, when we only had about 10% of the money that was going into innovation across the world was happening in Europe. That ramped up to 19% by 2023. McKinsey talked about these compelling reasons to be optimistic about Europe's potential to become a powerhouse in the deep tech arena.
They highlighted this data that they had researched and found that what they're describing as a deep tech innovation investing delivers much better returns than traditional tech investing. This is not me saying this. This is McKinsey's data. This is what's driving this real interest in this space and developing this whole industry as an asset class in its own right. They attribute that better returns to all sorts of things of lower competition because you have a more differentiated technology, these founders that have this great technical skill set, opportunities in these huge market areas, the global mega trends that we play across, patent protection, and so on. Right now, the whole world is being disrupted. Our world is being disrupted. Every industry is being disrupted. My seven-year-old daughter came into the room when I was preparing this bit of the presentation.
She asked me what I was up to. I said, "Oh, I'm going to tell people about this amazing thing that's changing the world and changing all our lives." She looked at me very puzzled. She said, "You're doing a presentation about Taylor Swift." It is not Taylor Swift, of course. I'm talking about artificial intelligence. This won't be news to anybody in the room, I don't think. Artificial intelligence over the past 10 years or so has been catching up very rapidly with human capability. Human capability is the sort of zero benchmark in this graph. You can see that handwriting recognition and speech recognition has caught up with that human equivalent with our inability to recognize those things.
Also now language recognition, predictive reasoning, even getting to the point of human comparable in some of these use cases, exceeding human capability. To the point that we're now, it's not much point in sort of comparing it to your average human's capability. We've now invented something called humanity's last exam, which is every bit as foreboding as it sounds. They wrote to all these experts, all these experts in different fields all around the world, and asked them to send in their hardest questions about your own field. They compiled all of these into an exam and gave it to the latest artificial intelligence large language models. It did okay to GPT-4.0, only 3% initially, but they're getting better. The models more recently up to 0.1, the latest OpenAI model is 0.01, managed to deliver 8.8% on that test. Who knows?
This graph elongates to the right where it will get to and how quickly. It is matching human capability. All the time, the price of these models, the price of using the models to infer a fact, is dropping very rapidly. This is a logarithmic scale on the y-axis here. The price of these models just in that three-year period has fallen dramatically. This is completely changing every industry. If a large language model can write an entire software application in a matter of seconds, what does that mean for the software industry? What does it mean for all of these other industries that it is disrupting and creating all this ability to be far more efficient and reach every piece of information that is relevant to your task in an instant? How do you play that as an investor?
What does all that mean? What does all this rapid change mean for an investor? One way to play it is to invest alongside somebody who's been investing in artificial intelligence for a very long time. IP Group has been investing in companies that are applying artificial intelligence across all of those mega trend areas that I've been talking about for a long time by way of example in the healthcare domain. This is an interesting graph. This is how large language models perform helping with diagnosis of medical conditions. This is given a set of symptoms, how well does the diagnoser do in getting the correct condition that the patient's suffering from? GPs over here, these are physicians in the green bar over here on the right. They do okay, sort of 75% of the time.
They're getting it right based on the symptoms. If they're augmented with ChatGPT-4 in the middle there, they do a little bit better, not all that much different. If they get out of the way altogether and ChatGPT-4 does the diagnosis, then it does a lot better. The diagnosis is much more accurate. We're seeing this huge wave now of medical devices that are being approved by the FDA that have AI enablement. This capability is being embedded into our healthcare system today. That's something that IP Group has been investing in for a long time. This is Oxehealth, one of our portfolio companies, Oxford University spinout that uses cameras to observe human beings. It can detect from the change in coloration in your skin and small changes in your physiology what your respiratory rate is and what your heart rate is.
This is used to ensure the care of patients, to make sure people are okay in custodial settings or in care settings to monitor patients. Doing very well now, working with the NHS and growing revenue rapidly. You might also be aware that we invested in a company called Hinge Health, which uses artificial intelligence to watch you. You put your phone or your iPad in front of you as you're doing your physiotherapy exercises. It will tell you if you're moving your arm wrong and to change your physiotherapy. That's been very successful. They sell into huge companies that roll it out across their whole workforce. You may have read that it's listed on the New York Stock Exchange two or three weeks ago, very successful IPO for us in the portfolio.
Of course, later on today, for those staying in the room, it will later be available online. For those of us in the room, we'll hear from one of our portfolio companies, Genomics, which is also using AI in really interesting ways for genomic research. That's in, sorry, I'll skip over it. That's in healthcare. We're also very interested in applied AI for applications in the digital domain and AI applications that solve a specific problem and have a specific value proposition in given industry verticals. A good example of that is our former portfolio company, Featurespace, which was a University of Cambridge company that was able to ingest payment information.
It would observe the behaviors of users or people who were paying for goods and was able to work out the patterns of the behavior of those individuals and therefore spot anomalies when there were unusual behavior in their payment patterns and detect fraud as a result. It could tell when there was a fraudulent payment and when it was not. Huge gain in accuracy in terms of spotting fraud when it was occurring. Also vastly reduced the number of times that fraud was falsely occurring when you get refused or your payment gets refused when you are just trying to pay for your shopping.
They sold to a lot of the big sort of banks and payment providers and ended up last year, as hopefully you'll be aware, they sold to Visa, yielding well over GBP 100 million for us as shareholders and a very strong multiple for IP Group. We continue to invest in this area. Please take the opportunity when you go outside for your coffees, those in the room, to meet Diffblue using reinforcement learning, a different form of artificial intelligence to large language models to produce testing for software code. Very valuable market opportunity there that Diffblue is at the forefront of, another AI spinout from Oxford that it's well worth you spending the time to get to know.
All of this application demand, all of these new forms of artificial intelligence application have a huge implication for the compute stack and the communication stack that's supporting them. That's something that my colleague Lee will talk about a little bit later on in the second session. We've got other companies here today that are demonstrating another company that you can meet, Quantum Motion. That's very worthwhile getting to know them and their approach to producing qubits, the building blocks of quantum computers. You'll also later on hear a presentation from Intrinsic that's building resistive RAM, semiconductor memory technology that has huge implications for our capability to process very large volumes, very high compute load applications of the type that we're now seeing in regular use.
All of that stuff means that we're at the beginning of what Jensen Huang, the CEO of NVIDIA, refers to as the beginning of two industry-wide transitions. He talks about accelerated computing and generative AI driving a doubling of the world's data center infrastructure in the next five years. That has huge implications for our energy consumption. These large language models have pretty material carbon footprints. They use a lot of energy. This is just the training required, the training carbon footprint required to train some of these models, which is equivalent to sort of lifetimes of motorcar usage now. There are a lot of these models coming along. The International Energy Agency predicts that we will use as much as a France and a Germany's worth of extra energy to power all these data centers that are coming along.
That is why we are one of the many reasons why we're investing in the area of clean energy and clean technologies that will address the energy transition. You might say we're in this sort of clean tech is out of fashion. We're in the era of Trump and we're going back to drilling for oil and this is not sort of relevant anymore. You may be right, but we've been very wrong about that before. The blue lines are all the predictions of what we made at the time of the adoption of clean energy. The orange line is what actually happened. What we have done is systematically underestimated the adoption of clean energy technologies vastly. It has grown exponentially in a way that we didn't expect at any of these inflection points in the last 10 or 15 years.
The reason for this is because the economic case is there. This is no longer just a political motivation. The economic case is there for these clean energy technologies. This is an area that we at IP Group have been investing in for a long time. A good example is Dukosi, our portfolio company, Dukosi, which used artificial intelligence again to individually evaluate the characteristics of every cell in a car battery. Each cell, because they have tiny material fluctuations, each cell has slightly different energy voltage characteristics, current characteristics, resistance characteristics. Dukosi would dynamically measure those as the battery is in action and adjust the load across the cells in the battery, which could elongate the life by significant amounts. We sold that company three or four years ago.
We also were the sort of cornerstone investor in Ceres Power, which turned out to be a great success for the group. We made a many multiples return on our investment in that company, a hydrogen fuel cell company. Later on today, you will hear from Hysata, Paul, the Chief Executive, here to talk to you later about Hysata, a very exciting current star of the portfolio, hydrogen electrolyser. I'm wearing the socks, Paul. Take note, other portfolio companies in the audience. Paul gave me socks. I've got Thursdays covered, but the rest of the week is free. Look, as a reminder, we are investing in these global, world-changing technologies, differentiated technologies with highly skilled teams behind them across these three mega trend areas. We are very well placed to take advantage of and leverage these huge opportunities that are created by AI.
You will see that in the companies that you meet later on today. Thank you very much all for coming along this afternoon.
Excellent. Thank you very much, Anne and Mark. I hope that gave you a bit of a flavor. I sort of touched on the context, the market opportunity here in the U.K., the overall market opportunity, and then talked about how we've got differentiated sourcing. I talked a little bit about the capital and the capital journey that's available. I hope you were suitably inspired by Mark's view from the coalface of what's possible in terms of technology, but also crucially, the exposure that we have in the portfolio to those mega trends and the opportunity you have to go and spend a bit of time and talk with them.
To all of those of you online, thank you very much for taking the last hour to spend some time with us. We are pretty much spot on time. We will break now for a coffee. We will be circulating, so please come and talk to us and ask any questions that you have got. We will then reconvene in 20 minutes. We will have three portfolio company presentations. For those of you online, they will be up over the next couple of weeks for you to review on one and a half time speed at your leisure in your commute, which is how these things are done. Very good. Thank you all for your attention. We will see you in 20 minutes.