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At SuperVenture, two key themes emerged: the transformative power of artificial intelligence and the growing importance of dual-use technology in defense and beyond. Insights from Ross Morrison, Adams Street Partners and Matthew Spence, Barclays, highlight the opportunities and challenges shaping the future of innovation and investment.

AI: The Biggest Technological Advancement in 25 Years

Artificial intelligence has emerged as a transformative force, reshaping industries at an unprecedented pace. Ross Morrison, Partner, Adams Street Partners, described AI as "one of the biggest technological advancements in both magnitude and speed that I’ve seen in 25 years." Since the introduction of ChatGPT in 2022, AI has added $25 trillion in public market value and driven $300 billion in infrastructure investments by 2025. Its impact spans both consumer and enterprise sectors, with the full extent of its potential still underestimated.

Despite the promise of AI, the venture capital landscape in 2025 is marked by uncertainty. Geopolitical shifts and economic dislocation have tightened liquidity, with the IPO window largely closed. However, Adams Street Partners has demonstrated resilience, successfully closing a dedicated European venture fund to support both established and emerging venture capital managers. With 50 years of experience and a disciplined approach, the firm remains committed to fostering innovation and long-term growth.

Dual-use technology: A new frontier in defense and innovation

Matthew Spence, Managing Director and Global Head of Venture Capital Banking at Barclays, brought a complementary perspective, focusing on the intersection of defense, dual-use technology, and venture capital. Drawing on his experience in government and investment banking, he highlighted the challenges and opportunities in leveraging cutting-edge technology to address global security risks.

Spence emphasized the importance of dual-use technology - commercial innovations that can also be applied to defense. He cited GPS as a prime example of a military technology that has become foundational in the commercial sector. “The best commercial technology should be brought into government use,” he argued, extending this principle to areas like state and city governments. Ethical considerations, he noted, are critical to ensuring these technologies align with societal values.

A return to deep tech

Both speakers pointed to a resurgence in deep tech investments, which combine hardware and software to solve real-world challenges. Spence described this as a return to venture capital’s roots, referencing the early success of companies like Digital Equipment Corporation in the 1960s. While the past decade favored software and SaaS, the pendulum is swinging back toward hybrid technologies, driven by improved capital efficiency and the need for hardware-software integration.

This trend is particularly evident in defense innovation, where advanced technologies like AI and sensors are moving beyond traditional "bullets and bombs." Spence sees significant opportunities for Europe to lead in this space, especially as defense spending increases. He also highlighted the potential for emerging markets to leapfrog outdated technologies, drawing parallels to how mobile technology revolutionized communication in Africa.

The role of venture capital in a new era of innovation

Both Ross and Matthew underscored the critical role of venture capital in bridging the gap between early-stage innovation and large-scale deployment. Whether it’s navigating the challenges of AI adoption or accelerating the integration of dual-use technologies, venture capital is uniquely positioned to drive transformative change. Adams Street Partners’ disciplined approach and focus on long-term partnerships ensure they are well-positioned to capitalize on emerging opportunities. Meanwhile, Spence emphasized the importance of improving government procurement processes and fostering collaboration between governments, investors, and entrepreneurs.

A shared vision for the future

Both Ross Morrison and Matthew Spence share an optimistic outlook, rooted in a commitment to resilience, innovation, and collaboration. As Spence aptly concluded, “This is both a new opportunity and a return to what venture capital has always been about - investing in transformative technologies.”