At the EUVC Summit 2025, Kerry Baldwin (IQ Capital) and Chris Elphick led one of the most urgent conversations of the year:
Can Europe mobilize its pension capital to fund innovation—or will it stay stuck on the sidelines?
With £1 trillion expected to be funneled into innovation, growth, and venture by 2030, the opportunity is massive. But unlocking it will take more than speeches and slogans. It will take structures, translation, and a whole lot of education.
The Landscape: Shifting Regulations, Real Potential
Chris opened by setting the context:
In July 2023, 10 of the UK’s largest pension funds agreed to invest 5% of assets into unlisted equities—representing £5 billion of fresh capital.
That capital is (unsurprisingly) biased toward private equity. But the real win?
Getting a meaningful slice of it into venture.
We now have the technical tools to do it:
The introduction of Long-Term Asset Funds (LTAFs)—with 27 launched to date—means the legal infrastructure is in place.
Regulatory shifts have opened the door. Now it’s time to walk through it.
“The pipes are built. Now we need to make the case.”
The Real Bottleneck? Language & Understanding
As Kerry pointed out, it’s not just about access—it’s about alignment.
“The pension world doesn’t speak venture. It speaks in valuations, risk ratings, board approvals, and actuarial models.”
To bridge the gap:
Ditch the pitch decks. Instead, build relationships.
Use case studies. Show, don’t just tell.
Speak their language. Get founders in the room. Educate through stories and real-world examples.
And yes, explain your fees—transparently.
→ “We charge fees because we hunt. We engage with professors. We run deep knowledge sessions. That’s where the value lives.”
A Word of Warning: Don’t Harm the Ecosystem
Kerry closed with a critical reminder from someone who’s seen the cycles before—2001, 2009, and now:
“Just play nicely.”
→ That means fair terms.
→ Respecting early-stage angels.
→ Not forcing founder-unfriendly clauses when capital is tight.
Venture doesn’t work when trust is broken at the seed layer.
A Trillion-Pound Opportunity—If We Get This Right
The prize is on the table. The pipes are laid. The policymakers are listening.
Now it’s up to us—as GPs, founders, LPs, and ecosystem builders—to:
Make venture legible
Build long-term trust
And design financial vehicles that serve founders, fuel returns, and unlock national innovation agendas
“Let’s stop waiting for the future to finance itself. Let’s build the financial architecture to fund it now.”
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