Building leadership teams for the future of compute

The UK’s computing landscape is undergoing a revolution. From quantum processors to specialised AI accelerators and sustainable data infrastructure, a new generation of startups are reimagining what “compute” means in a world dominated by AI.

These startups are also attracting investors. In the UK alone, investment in this space has grown from £3m in 2015 to £284m in 2024 source. Looking at the wider picture, stats from Dealroom show that $1.2bn was invested into European Future of Compute startups last year.

Spin-out to exit

 

It’s not just investors who are paying attention. In September, quantum computing startup, Oxford Ionics, was formally acquired by US quantum leader, IonQ, for $1.075 billion. It was a landmark deal – one of the largest the sector has seen – and it came just six years after the business spun out of the University of Oxford.

However, this kind of success story is uncommon. The path from spin-out to exit is not an easy one, and, as a sector, the Future of Compute is yet to build a strong track record of M&A activity.

This is perhaps unsurprising, given the historic lack of investment in the space, but whether we see more billion-dollar-plus exits will depend not just on the strength of innovation or the depth of VC pockets, but also on the talent leading these ventures on their growth journeys.

The talent landscape

The UK benefits from world-class academic pipelines in physics, computer science, and electronic engineering, as well as an ecosystem where graduates can move fluidly between academia, startups, and big tech.

However, this pipeline hasn’t always been nurtured, and the impact of that is becoming apparent.

For example, the UK has a rich heritage in the semiconductor sector, and companies like Inmos and Arm have produced a generation of experienced leaders, many of whom have gone on to create their own startups. But increasingly, that cohort is now transitioning into portfolio work or retirement, leaving a big skill gap behind them.

This industry, now at the epicentre of tech innovation, economic, and strategic growth, faces a real shortage of leadership talent capable of scaling startups, commercialising technologies, and navigating the lab-to-fab process.

The challenges

• Hardware and semiconductor expertise is in short supply - particularly at a senior level

• Global competition for talent — especially from US and Asian hyperscalers — is intense, driving up salary expectations and making retention difficult

• Venture-backed startups often struggle to compete on compensation

• The number of startups that have reached profitability and/or exit is low, so there are relatively few leaders with experience of successfully navigating the full commercialisation and growth journey

• Lack of diversity across the sector

To examine how companies are responding to those challenges, Upscale Partners has recently conducted research into ten of the UK’s top semiconductor / compute startups, exploring how they are building their leadership teams.

You can read the full report here:

Compute Leadership Report.pdf

Download PDF • 2.04MB

In the meantime, here are some of the takeaways….

Hiring from networks

In several of the startups we investigated, it seemed certain hires might have been ‘known quantities’ to the CEO. For example, at Paragraf, both the CEO and COO are ex-Aixtron; at Oriole Networks, the CEO and two VPs used to work at EFFECT Photonics; while, at Forefront RF, the CEO and Director of NPI share a similar history including roles at SemiBlocks and Qualcomm.

Hiring from existing networks can be very effective, potentially minimising cost and risk. That said, avoid over-reliance on this strategy to ensure there is a diversity of backgrounds and perspectives across the senior team.

Hiring rising stars

It’s never too early to start thinking about succession planning and building a robust talent pipeline into the business. When hiring for more junior positions, keep an eye on the future and look for individuals with the potential to step up when the time is right. Once you have them on board, ensure this potential is nurtured.

Providing clear progression opportunities is great for retention, and having the option to promote internally is a real advantage when it comes to leadership appointments.

Hiring in the US

The North American market is a vital part of the strategy for most Future of Compute startups, and it’s unsurprising that six out of the ten profiled startups have US-based members of their leadership teams. However, making that first US hire can be expensive and risky, so it is imperative to plan the right approach and budget.

For some, a US-based Chair can be a great first Transatlantic appointment. Finding someone with industry credibility and investor / commercial contacts can be an impactful way of tapping into that market at a lower cost than for a full-time executive hire

Hiring beyond the UK

Given the talent shortages in the industry, try casting a wider net to broaden the options. Several of the profiled startups have hired outside the UK when adding to their leadership teams, and we frequently advise clients to consider international candidates for senior roles, even if a regular in-person presence is desired. Often, individuals are prepared to relocate, travel, or work away from home for the right opportunity. 

Hiring from startups

Many of the executives we’ve looked at for this report have worked for large multinationals at some point in their career. However, we also found a significant amount of startup experience across the board.

This experience is valuable as it shows they can perform outside of a corporate structure, and understand the reality of working in a startup environment. Ideally, you will hire someone who has successfully navigated the growth journey before - but don’t be too quick to rule out the failures: they can provide valuable learnings and help you avoid the same mistakes.

Competing with big tech

It’s no secret that big tech is on a hiring spree, and investing heavily to attract talent with rare skillsets in areas such as AI and quantum. With any novel technology, there is a scarcity of senior talent who possess the relevant domain experience, so it is important to be competitive. You need a strong proposition to present to candidates - emphasise the vision and values of the startup, the growth and exit potential, and the autonomy and impact they will have in coming on board.

If you don’t have the budget to compete on salary, be prepared to be creative with bonuses and generous with equity and its structured. For example, we are increasingly seeing startups offering secondaries to their employees, allowing them to realise financial gains from their equity ahead of a traditional exit event.

If we can help you build your leadership team, please get in touch.