Bridging Capital and Capability How IMS Digital Ventures' venture builder model is transforming UK tech investment with operational firepower and global reach

The UK's tech and investment landscape is evolving fast. At the forefront of this transformation is London- based IMS Digital Ventures, an investment house with multiple asset classes across venture building, private credit, real estate, and hedge fund stakes - all while delivering an eye-watering 100% internal rate of return. One of its founding partners, Manuela Burki, offers an insight into the firm's early vision, its unique model, and what the future holds for UK start-ups and family offices.

"There are three key parts to it," Burki explains when asked what inspired IMS Digital Ventures and propelled its remarkable success. "We learned early on that there is a critical gap between capital and capability. An MVP, even with good tech, won't get you far without operational firepower, regulatory fluency (especially in emerging sectors like tokenisation), and distribution." This understanding became the foundation of IMS's hybrid approach: "Merging operational experience with an ecosystem advantage driven by an internal R&D lab that focuses on proprietary, defensible tech. It's how we beat industry benchmarks across the board."

This model not only accelerates start-ups' journeys but also offers family offices an attractive way to engage. According to Burki, "There is a changing of the guard for family offices with a new generation of decision makers who want to be in on the action. But unless you have built up in-house capabilities and have exceptional access to entrepreneurs and spare resources to be hands-on with your investment, knowing which early-stage tech companies to invest in is hard."

The challenges of vetting technology, helping with distribution, and pivoting when necessary make traditional investment approaches risky, she says: "A venture builder model that is backed by a network of investors like you, each one bringing something unique to the table, is an incredibly powerful way to strategically structure venture capital investing."

IMS's strategy is defined by a long-term vision that operates independently of market noise. Burki notes, "We were never distracted by the tech industry's hype cycles. For example, B2B SaaS has gotten a lot of attention in the last few years but we were there before it was cool." They focus instead on "underexplored categories with asymmetric upside where our tech is a serious threat or deterrent to other competitors." And while the crypto boom dazzled many, IMS took a more measured approach: "We often joke we were the last ones to invest in crypto. All of our blockchain and NFT investments are backed by real-world assets with serious industry use cases and have liquid secondary markets."

On the broader UK fintech landscape, Burki is optimistic about the nation's potential to become a hub for tokenised real-world assets (RWAs) like real estate. "The UK recognises that long-term investor and industry confidence in cryptoassets depends on clear and competitive regulation." The recent FCA draft legislation around cryptoassets and stablecoins is a step in the right direction. She adds, "We believe that the UK can merge its financial legacy with forward-thinking policy to position it as a leading market for fintech. It's about recognising the role that crypto can play as a credible, positive force for growth."

While the UK trails markets like Dubai or Switzerland on crypto regulation, Burki believes it can lead in RWAs: "RWAs are a natural extension of the UK's institutional base and asset management space. Take the forces shaping real estate in the UK today. Over £260bn in UK property wealth is held in UHNW portfolios. Higher-end properties fell 1.6% compared with 0.6% for smaller properties in London. Tokenisation can create liquidity and infrastructure for broader participation as investors favour smaller-ticket, cross-border access in a time of general market uncertainty."

When it comes to start-ups, Burki highlights challenges unique to the UK: "UK-based start-ups are in a big market but face their own challenges, and specifically ones that slow them down just as they are trying to scale-up." In the US, corporates are less cautious about early-stage procurement, and in Asia or the Middle East, governments often act as early adopters. But in the UK, start-ups must navigate "tougher processes to get early validation." She points to IMS's AI cybersecurity company Blacklight as a case study, where "it takes so much time and effort to get contracts over the line with governments and tier-one clients in the financial industry."

The venture builder model, Burki argues, can provide vital legitimacy, reassurance, and hands-on support during these fragile early phases. This approach is especially timely, as the traditional "blitzscaling" mindset loses favour: "The blitzscaling playbook doesn't sit well with investors any more, especially with family offices and HNWIs who are increasingly turning to venture capital as a way of diversifying their portfolios." Today's investors demand resilience, defensible IP, and clear paths to profitability: "A good venture builder provides proven experience with teams that have fought on the VC battlefield and understand how to scale defensible IP portfolios that align with future market needs."

The UK's venture capital ecosystem also depends heavily on international capital for later-stage companies. Burki observes, "Different investor profiles from markets like Singapore or Dubai are backing UK tech start-ups in verticals such as fintech and AI. Other UK start-ups look to the US, offering competitive valuations and a way to diversify into other markets." This global connectivity imposes additional demands on founders who must "travel, build relationships, create compelling go-to market strategies in international markets, and fend off global tech competitors." IMS's hybrid model bridges these gaps: "We merge operational expertise with a well connected global partnership of family offices that have real skin in the game to support our portfolio companies."

Finally, Burki addresses how UK family offices are adapting to emerging technologies like blockchain and AI: "What's changing now is speed. UK family offices don't want to be the last in the room. What they need is a platform that speaks both languages: innovation and intergenerational capital stewardship." But many still lack the infrastructure to vet, support, and scale next-gen tech investments. IMS has responded by offering "venture building as a service: we give them skin in the game and back it up with infrastructure that de-risks and accelerates company growth."

This model - where operational expertise, technical depth, and strategic capital converge - offers a sharp contrast to traditional venture capital. In a landscape where speed, resilience, and hands-on support increasingly determine success, it may well signal the next chapter in the evolution of UK tech investment.