Ben Backx

The UK has created 163 unicorn companies to date. Each one had a strategy that matched their vision. If you're aiming to build a billion-pound business, your strategy must reflect that level of thinking. Far too often, founders stop at the surface-level decisions. They don’t align the mission, vision, and actions that drive long-term growth. That's why this infographic is really helpful. It breaks down strategy into three simple but powerful layers: ✅ Purpose ↳ Why do we exist? What matters to us? This is where your mission, values, and vision come to life and keep your team aligned. ✅ Strategy ↳ How will we get there? This is the bridge between aspiration and execution, covering plans, focus areas, and enabling tools. ✅ Execution ↳ What will we do next, and how will we track it? This is where actions, targets, and KPIs create real results. I’ve seen too many businesses stall because they ignore this process. But every billion-pound business I've backed or built has done the opposite. They've had a crystal-clear mission, a strong strategy, and consistent execution. And more importantly, they believed it was possible to build something big. That belief needs to show up in every step of the funnel.  If you’re building a business with serious potential, My book How to Make a Billion in 9 Steps will help refine your strategy. You can order the book here 👇 https://lnkd.in/eRYDKXdT What’s one part of your strategy that you’re currently refining? I’d like to hear how you’re approaching growth. ⬇️ ♻️ Repost if you believe Britain needs more billion-pound businesses. And for more on scaling with purpose, Follow me Richard Harpin.

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This week on the podcast we were joined by Cliff Obrecht, co-founder and COO of Canva. He was an amazing guest. It was great to get his take on the IPO landscape, where Canva is on the AI adoption curve, and the advice he no longer gives to founders. A few takeaways: Managing your company well is the only thing that matters. Valuations can be wrong by a lot. If you keep growing and keep compounding, you can still come out on top. In Canva’s case, that means a billion dollars cash in the bank and eight years of profitability. It’s easy to build hype, especially around AI. It’s much harder to cross over into the mainstream the way Canva has done. Initial product traction for an AI tool is great, but scaling to people who don’t know or care what people are saying on X is how you build a billion-dollar company, and it will be interesting to see who is able to do it. The internal mandate for AI is to try everything. There are some guidelines (you only get two LLMs but they don’t care which two) but for now, Canva employees can use what they want. He expects to consolidate as the winners become clearer over the next 12-24 months. When public markets were valuing companies as lower than the private markets, the incentive to IPO wasn’t particularly strong, especially for Canva who simply didn’t need the money. With the public markets the way they are today, however, it becomes a bit more appealing. The cost of running AI is high but it will come down. Cliff is already starting to see it. It gets more efficient as you pick the right model for the job, running AI on device or self-hosted, etc. For now, it might cost 4 cents an image, but over the next six months, they’re counting on it dropping to .02 cents an image. The upfront costs are not indicative of long-term spend. Listen here: https://lnkd.in/guuQUdN7

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We’ve raised €1.5Bn across our studio ventures 🎉 I realised: Funding is a function of future clarity. When we work with founders, we ask them to go 5-10 years into the future. Get concrete. Not just a vision, but a plan you can walk through, step by step. - What’s your CPA? And over time? - What channels are driving your growth? - What needs to be true in the market for this to work? - What does the team look like now, in 6 months, 2 years etc? - What will you do if something big changes? (New tech, new rules, new rivals?) The more detail, the easier it is for investors to see what you see. When you pitch with this level of clarity, you don’t sound like someone asking for money. You sound like the CEO of a unicorn, inviting people to join your story before the world catches up. You start to embody that future leader. Investors feel it. They respond to it. Founders, if you’re pitching, ask yourself: Can you describe your business in 2030 in extreme detail?

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The numbers tell a story, and it's not a pretty one for Rachel Reeves. UK 30-year gilt yields have hit 5.69% - the highest they've been since May 1998. That's a 27-year high. For those wondering what this actually means: gilt yields are the amount the UK govt is having to offer to borrow money. And the 30-year gilt is basically a 30-year loan so the principal is repayable in 30 years' time with interest in the meantime. Think of it like this: if you had a poor credit score, lenders would demand higher interest rates from you. The same logic applies to countries. The markets are essentially saying: "UK, we're not entirely confident in your future financial position." With the autumn budget looming, this adds serious pressure to the Chancellor's plans. Higher borrowing costs mean either less money for public services or higher taxes to balance the books. And it gets more interesting: because inflation is also going up whilst interest rates are going down (normally these would move in the same direction). What are the root causes of all this? Persistent inflation and rising public debt have spooked investors. They're demanding higher returns to compensate for what they see as increased risk. But the Bank of England is conscious that keeping interest rates where they are or raising them will weaken an already weak economy. For investors, this creates an interesting dynamic. Higher yields mean better returns on government debt - but only if you believe the UK can actually service these obligations long-term. It's a reminder that in finance, as in life, confidence is everything. And right now, the markets aren't feeling particularly confident about Britain's fiscal trajectory. The question for Reeves: how do you restore that confidence without choking off economic growth? That's the £1 trillion question. #UKEconomy #Gilts #PublicFinances #Investment

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I believe the UK has a real opportunity to lead a new, ethical model for growth with digital labour. In a recent piece for The Guardian, I shared my thoughts on how people and agentic AI can work together. Our goal is to augment human capabilities, not replace humans. We’re achieving this by automating routine tasks and freeing up teams to concentrate on strategic, high-impact work. We're already seeing the results firsthand. Our AI agents have now handled over 1 million customer conversations, showing how digital labour can alleviate routine queries and let our teams focus on the complex challenges that drive real value. I hope you'll read the full article to explore how we can build a more dynamic, hybrid workforce for the future: https://lnkd.in/eVDB_sYt

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In a world obsessed with DPI, I wanted to ask: 𝐰𝐡𝐚𝐭’𝐬 𝐭𝐡𝐞 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 𝐜𝐨𝐬𝐭 𝐨𝐟 𝐬𝐞𝐥𝐥𝐢𝐧𝐠 𝐞𝐚𝐫𝐥𝐲? Earlier this week, I shared how hurdle rates are quietly reshaping GP incentives. Today’s post builds on that theme - this time focusing on what happens when GPs sell too early. I modelled 𝐞𝐢𝐠𝐡𝐭 𝐬𝐜𝐞𝐧𝐚𝐫𝐢𝐨𝐬 based on a $100 investment compounding at a 𝟭𝟔% 𝐚𝐧𝐧𝐮𝐚𝐥𝐢𝐳𝐞𝐝 𝐫𝐞𝐭𝐮𝐫𝐧. In the base case, the capital compounds for 12 years, producing a 𝟓.𝟗𝐱 𝐌𝐎𝐈𝐂. In the other seven, the full $100 is returned in different years (4–10), with only the remaining unrealized value continuing to compound at 16%. The result? Selling early dramatically reduces long-term value. At a 16% compounding rate, returning the full capital in Year 4 produces a 𝟑.𝟕𝐱 𝐌𝐎𝐈𝐂, while returning it in Year 8 yields 𝟓.𝟏𝐱. The difference represents the hidden cost of shortening time and cutting off compounding before it can fully do its work. In a market obsessed with DPI and liquidity, it’s easy to forget that the real driver of fund performance is 𝐭𝐢𝐦𝐞 𝐢𝐧 𝐦𝐚𝐫𝐤𝐞𝐭, 𝐧𝐨𝐭 𝐭𝐢𝐦𝐞 𝐭𝐨 𝐥𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲. Managing distributions and pacing exits is critical - but so is recognizing that compounding is back-end loaded, and once you sell, that growth engine stops. 🔍 𝐊𝐞𝐲 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 1️⃣ 𝐓𝐢𝐦𝐞 𝐢𝐬 𝐭𝐡𝐞 𝐬𝐢𝐥𝐞𝐧𝐭 𝐦𝐮𝐥𝐭𝐢𝐩𝐥𝐢𝐞𝐫. At 16%, four extra years of compounding adds more value than most realize - which could be the difference between a great fund and an exceptional one. 2️⃣ 𝐋𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲 𝐭𝐢𝐦𝐢𝐧𝐠 𝐝𝐫𝐢𝐯𝐞𝐬 𝐟𝐮𝐧𝐝 𝐨𝐮𝐭𝐜𝐨𝐦𝐞𝐬. Many GPs target 1.0x DPI for optics or fundraising ease, but returning capital too early can quietly cap terminal fund performance, if done incorrectly. 3️⃣ 𝐇𝐮𝐫𝐝𝐥𝐞𝐬 𝐢𝐧𝐭𝐞𝐧𝐬𝐢𝐟𝐲 𝐭𝐡𝐞 𝐩𝐫𝐞𝐬𝐬𝐮𝐫𝐞. As discussed earlier this week, compounding hurdles often push GPs to “stop the clock” - this model shows how doing so can directly reduce long-term performance. 4️⃣ 𝐏𝐚𝐭𝐢𝐞𝐧𝐜𝐞 𝐢𝐬 𝐚 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐥𝐞𝐯𝐞𝐫. In venture, compounding is exponential - not linear. A 16% annual return adds just $16 in Year 1, $29 in Year 5, but $61 in Year 10 - a 3.8x jump. It’s a powerful reminder that most value creation happens late, and that time - not timing - is often the biggest driver of returns. 5️⃣ 𝐄𝐚𝐫𝐥𝐲 𝐬𝐚𝐥𝐞𝐬 𝐨𝐟𝐭𝐞𝐧 𝐦𝐞𝐚𝐧 𝐬𝐞𝐥𝐥𝐢𝐧𝐠 𝐲𝐨𝐮𝐫 𝐛𝐞𝐬𝐭 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬. The assets that attract secondary buyers are usually a fund’s strongest performers - the ones driving future upside. Selling them early may boost DPI today but risks cutting off the very power-law outcomes that define venture returns. Venture capital rewards those who understand the math of patience. Selling early might feel like progress, but as this data shows, 𝐭𝐢𝐦𝐞 𝐜𝐚𝐧 𝐛𝐞 𝐲𝐨𝐮𝐫 𝐠𝐫𝐞𝐚𝐭𝐞𝐬𝐭 𝐬𝐨𝐮𝐫𝐜𝐞 𝐨𝐟 𝐚𝐥𝐩𝐡𝐚 - 𝐢𝐟 𝐲𝐨𝐮 𝐥𝐞𝐭 𝐢𝐭 𝐰𝐨𝐫𝐤. 𝐒𝐢𝐠𝐧𝐚𝐥𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐍𝐨𝐢𝐬𝐞 🤓

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We’ve been sharing glimpses of how AI is changing the way Carta works - both internally and for our customers. Here’s another one I’m really excited about. Historically, if our fund admin team or a GP wanted to get a clear picture across all their funds, it required jumping between individual fund views. Even something simple like checking a bank transaction  could take way too many clicks. Over the past few weeks, we’ve been testing an internal AI tool that can surface answers across an entire firm. Want to know if a wire went out to a specific beneficiary? Need to see the related journal entries? Just ask. Right now, this is a tool for our team. But we’re building toward a future where GPs can get answers like these instantly - without digging, waiting, or switching context.

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It's a proud moment for me, as we announce our $30bn (£22bn) investment to power the UK’s AI future. This hugely significant investment – spanning 2025 to 2028 – is Microsoft’s largest ever financial commitment in the UK and shows how much belief the company has in our country’s potential. $15bn of this investment will go towards building new #Cloud and #AI infrastructure, including the country’s largest supercomputer (23,000+ advanced GPUs), in partnership with Nscale. The rest of the investment will: ◾ strengthen our existing operations and boost technological innovation to the benefit of our customers; ◾drive progress on the UK Government’s #AIActionPlan; ◾support our focus on providing free AI skills to more than a million people by the end of 2025. Our commitment today will fuel a prosperous AI-powered future for the UK built on trust, security and responsibility. Find out more here: https://lnkd.in/eKf482ps #Innovation #Investment #AgenticAI #UKEconomy #AISkills Brad Smith | Satya Nadella

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