A Message from Lord Pickles and Lord Blunkett, followed by Grapeshot's best practice article

The ability to listen and learn from one another has always been vital in parliament, in business and in most aspects of daily life. But at this particular moment in time, as national and global events continue to reiterate, it is uncommonly crucial that we forge new channels of communication and reinforce existing ones. The following article from Grapeshot is an attempt to do just that. We would welcome your thoughts on this or any other Parliamentary Review article.

Blunkett signature Rt Hon The Lord David Blunkett
Pickles signature Rt Hon The Lord Eric Pickles

CEO and co-founder,
Celebrating our new
home in Cambridge
Last year, Grapeshot grew revenues 160 per cent, with
a profit margin of 19 per cent. They sell “contextual
intelligence” data in 148 countries, and book 70 per cent
of their revenues in US dollars. They provide real-time contextual
data to advertising agencies buying media programmatically.
As co-founder and CEO of Grapeshot, John Snyder is proud of
building a fast-growth Tech 100 company paying wages and
taxes into the Treasury.
As a board member of the EEDA (East of England Development Agency), appointed
by a government minister in 2003 to an economic development agenda, I got my
first glimpse of the government apparatus. This ranged from think-tank events at
Downing Street to being on the Norfolk coast with dire “in need” communities,
wrestling for broadband connectivity and economic inclusion in our digital
economy. Five years’ public service helps me ponder what makes UK limited
companies innovate and how entrepreneurs go global.
Peacock feathers
The early stage is hard work. It’s hard to get funding, and it’s hard to punch above
your weight, especially if you have no product yet and only an idea of how you could
change the world. At Grapeshot, working from an attic room, I was able to partner
with IBM, and win a government technology strategy board grant. This helped me to
get an information research project underway. We web-crawled news websites and
blogs to discover how a story broke, gathered pace and splintered into sub-stories.
We initially lacked reputation, so leant on IBM’s brand equity. TSB paid 50 per cent
»CEO and co-founder: John
»Incorporated in 2002,
commercial from 2006
»Based in Cambridge, with
offices across the globe
»Services: Contextual in-the-
moment marketing engine
»No. of employees: 170
»No. of VC investors: 3 British,
1 American
»Serves 7,000 advertiser brands
»Monitors 5 billion webpages
Highlighting best practice
costs of my R&D investment. I puffed up
these IBM and TSB peacock feathers to
look bigger than we really were.
Winds of regulatory change
GDPR, by requiring companies to opt
into digital tracking on the internet,
is fundamental privacy protection
for consumers. Every day, Grapeshot
crawls 500 million webpages to
understand precisely what a consumer
is reading, live in the moment, as
soon as a webpage loads inside a
browser. No user tracking is required;
Grapeshot provides real-time contextual
intelligence about the page, not the
user. Advertisers target webpages
using their own choice of words.
Agencies effect precision targeting and
customised brand safety screening,
choosing ad slots on relevant pages,
based on context alone – perfect for
our new GDPR-managed world. No user
tracking or user opt-ins are required
with contextual placements. Grapeshot
expects to grow another 150 per cent
this year, as advertisers swing away
from user profiling to context targeting.
Smart talent
In digital advertising, 140 billion ad
impressions are auctioned in real time
each day. This somewhat overshadows
the one billion daily trades on a stock
market like the LSE. Our Cambridge
headquarters hires smart people, but
we cannot find those staff easily.
This makes us wonder: why have our
schools and colleges not got behind
the Raspberry Pi revolution and given
computer science a stronger presence
in the curriculum? Where are the
apprenticeships and internships that
nudge young people into an exciting,
technological future? Experience is
more valuable than a wage, yet payroll
legislation inhibits today’s 14-year-
olds receiving easy access to business
exposure. The classroom restricts
them from real-life learnings until
after they leave school. The bridge
between business and education still
seems non-existent from where I sit
today, hungry for talent and wanting
to train tomorrow’s generation. At
Grapeshot, we sponsor interns from
16 years old to undergraduate level in
our Cambridge, London and New York
offices. Many return as full employees.
UK limited companies need to get
much smarter in connecting young
people with the engines of commerce,
revenue, profit and taxes.
Government grants
At EEDA, we distributed small business
grants. Analysing years of data across
400 grantee companies, I observed
that aggregate employees doubled
year on year. The return on investment
to the Treasury was incredible. This
cohort attracted 20 times more
capital after our early-stage funding
intervention, yet I witnessed no
longitudinal analysis of beneficiaries.
What journey did each of these
companies take towards growth? At
Grapeshot, account management is
vital to support customers, predicting
Real-time contextual
Every day,
crawls 500
webpages to
precisely what
a consumer is
reading, live in
the moment
future revenues and innovating as we
learn from clients too. Where is the
longitudinal account management
in government? Grapeshot took
£250,000 from government subsidy,
and has since raised £16 million from
UK investors. We now command the
interest of many US investors and are
both profitable and self-sufficient.
Exporting own culture
The US market is difficult for any British
company. You are an unknown brand
with no local customers. I landed in
Manhattan and tasked my most junior
UK team to earn $1,000 revenue each
from five accounts before I employed
my first US citizen. Less than 48
months later, four US salespeople now
book over $3 million each month. The
secret was to take my junior staff from
London, frame the US culture around
this UK transplant and build a New
York office out like a mini start-up.
This meant committing my time to
New York, and relying on my London
and Cambridge managers to watch
our UK business. Much like playing
, you have to sequence your
marshalling of resources and choose
when and where to take your fighting
energy. Today we span the globe with
offices in Sydney, Shanghai, Hong
Kong, Singapore, London, Cambridge,
New York, Toronto, Chicago, Palo Alto
and Los Angeles. We are still growing,
and still precious about our culture and
its sustenance.
Networking like crazy
I got UKTI assistance via a US
investor programme that found me
a US venture capitalist. It opened my
New York network in an instant. At
EEDA, I witnessed incubator building
programmes, and as a business leader
I always thought people networking
was more valuable than a bricks-
and-mortar investment. Pizza and
beers after a two-hour listen-and-
learn session with peer CEOs is the
best way to help each other; learn
from others’ mistakes, not just your
own. Expensive spending on easy-to-
photograph incubator offices misses
the point. Catalysing the opportunity
for people to meet in any building
and facilitating quality networking is
surely the cheapest and best return
on investment. After attending a
Tokyo British Embassy event last year,
Grapeshot will be setting up in Japan
in 2018.
Government resources gave me access
to early R&D funds and credibility.
Networks have given me additional
reach. Finding smart talent is, as ever,
difficult and the type of capital supply
in UK venture capital is not optimised
for building tomorrow’s billion-dollar
global companies.
I am thankful that we continue
to grow apace, adding more jobs
and funds to the economy, as part
of building one Grapeshot culture
and a footprint of GDPR-compliant
advertising data across the globe.
Today we span
the globe with
offices in Sydney,
Shanghai, Hong
Kong, Singapore,
Cambridge, New
York, Toronto,
Chicago, Palo
Alto and Los
Grapeshot Singapore
team at lunch

This article was sponsored by Grapeshot. The Parliamentary Review is wholly funded by the representatives who write for it. The publication in which this article originally appeared contained the following foreword from Rt Hon Kwasi Kwarteng.

Rt Hon Kwasi Kwarteng's Foreword For The Parliamentary Review

By Rt Hon Kwasi Kwarteng

This year’s Parliamentary Review reflects on a tumultuous and extraordinary year, globally and nationally. As well as being an MP, I am a keen student of history, and I am conscious that 2020 would mark the end of an era. It will be remembered as the year in which we concluded Brexit negotiations and finally left the European Union. Above all, it will be remembered as the year of Covid-19.

In our fight against the pandemic, I am delighted that our vaccination programme is beginning to turn the tide – and I pay tribute to the British businesses, scientists and all those who have helped us to achieve this. But the virus has dealt enormous damage, and we now have a duty to rebuild our economy.

We must ensure that businesses are protected. We have made more than £350 billion available to that end, with grants, business rates relief and our furlough scheme supporting more than 11 million people and jobs in every corner of the country, maintaining livelihoods while easing the pressure on employers. The next step is to work with business to build back better and greener, putting the net zero carbon challenge at the heart of our recovery. This is a complex undertaking, but one which I hope will be recognised as a once in a lifetime opportunity.

Through the prime minister’s ten point plan for a green industrial revolution, we can level up every region of the UK, supporting 250,000 green jobs while we accelerate our progress towards net zero carbon emissions.

With our commitment to raise R&D spending to 2.4% of GDP and the creation of the Advanced Research & Invention Agency, we are empowering our fantastic researchers to take on groundbreaking research, delivering funding with flexibility and speed. With this approach, innovators will be able to work with our traditional industrial heartlands to explore new technologies, and design and manufacture the products on which the future will be built – ready for export around the globe.

And I believe trade will flourish. We are a leading nation in the fight against climate change. As the host of COP26 this year, we have an incredible opportunity to market our low-carbon products and expertise. Our departure from the EU gives us the chance to be a champion of truly global free trade; we have already signed trade deals with more than 60 countries around the world.

As we turn the page and leave 2020 behind, I am excited about the new chapter which Britain is now writing for itself, and for the opportunities which lie ahead of us.
Rt Hon Kwasi Kwarteng
Secretary of State for Business, Energy and Industrial Strategy