Technology is redefining what is possible in every walk of life, and that includes the scaling of climate technology. The net-zero transition, hailed as the economic opportunity of modern day, is reshaping global markets and spurring innovation.
The UK starts from a position of strength. Our skilled workforce, technology innovation and ecosystem have enabled the emergence of internationally competitive, homegrown technology solutions. In the past, the UK has faced a growth challenge as it looked to retain and scale start-ups and SMEs. Many domestic technology companies have found it difficult to secure funding beyond initial rounds, sometimes relocating overseas for easier access to later-stage funding. This ‘failure to scale’ has caused the UK economy to miss out on significant technological and economic growth opportunities.
However, the tide is changing. Start-ups and SMEs, such us at Pulpex – our sustainable packaging technology company – have overcome this barrier because of greater access to finance and the utilisation of domestic skills and infrastructure required to commercialise and thrive.
Achieving scalable success
Pulpex originated as an innovation project from Diageo, a global leader in premium drinks such as Johnnie Walker and Smirnoff. Diageo and Pilot Lite saw a clear opportunity for developing Pulpex in the UK, which provided our initial financing, allowing us to advance our R&D process quickly.
As with many start-ups and SMEs, our greatest financial challenge post the early investment rounds was securing funding to scale-up from full R&D validation of automation to deploy commercialisation execution. Understandably, this stage carries significant risks for investors, even more so in current economic conditions, because they cannot judge risk on operational performance and return on their investment.
In our case, we secured funding from the National Wealth Fund whom crowded in support with the Scottish National Investment Bank to construct our first commercial factory in Glasgow, due to open this summer. We believe that changes introduced by the government’s Industrial Strategy, such as removing blockers to investment and growth have enabled investors to support UK businesses more confidently, in turn boosting economic growth. This has made it easier and quicker for companies to make long-term investments in their domestic operations and scale-up domestically.
Our current consideration is scale, a factor key to why Glasgow was selected to house our factory. The city was identified in the Industrial Strategy as having enormous potential and boasts financial support from local investment institutions, excellent industrial infrastructure and access to skilled workers that could be retrained or upskilled.
The UK a pioneer of innovation
The UK is a global innovation leader, particularly in cutting-edge technology and advanced manufacturing, many of which are born from start-ups or SMEs. To maintain this status, the UK must support these businesses or risk haemorrhaging the economic benefits of these enterprises.
Green solutions offer huge growth opportunities because they work towards, not against, international net zero targets. The demand for sustainable solutions has enabled us to realise our global ambition to export our homegrown expertise on an international stage. Despite our technology being relatively new, its tangible impact on corporations’ sustainability strategies has already seen us partner with major brand owners such as PepsiCo and Unilever.
Pulpex created a simple yet effective business model which the Department for Business and Trade (DBT) is accelerating – provide and license our technology, allowing companies to acquire the capital equipment from Pulpex and install these in their own production lines. Our partnership with the DBT has provided us with sustained support throughout our international growth phase, including assisting us in securing high-level government introductions, such as senior-level engagement in India.
Despite the ‘failure to scale’ headlines, start-ups and SMEs can draw inspiration from our journey. UK-born technology and advanced manufacturing businesses hold genuine potential to drive national productivity and economic prosperity. These economic benefits, along with the government’s ambition to make the UK a conducive environment for start-ups and SMEs to thrive is encouraging. Homegrown enterprises are crucial in cementing the UK’s position as a global leader in technology solutions.
Scott Winston, Scott Winston, managing director & chief science and sustainability officer at Pulpex
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