Mike Lynch
A chubby, bald man with an imposing body was sitting beside a woman in a room inside the San Francisco Court, on a June morning in 2024. When the foreman of the jury pronounced a “Not Guilty” verdict, the British entrepreneur Mike Lynch and his wife, nervously waiting in the front row of the gallery, suddenly burst into tears. Likewise, the defendant’s lawyers celebrated the verdict, led by US Star Litigator Chris Morvillo, from the global law firm Clifford Chance, a key part of the legal team. In August, the same people, plus other guests, including Jonathan Bloomer, a top investment banker from Morgan Stanley, one of the big four Wall Street firms, were celebrating the victory on a sailing trip aboard the luxury yacht, Bayesian: the 56-meter long sailing yacht built by Italian shipyard Perini Navi, which showcased one of the tallest masts in the world topping 75 meters in height, sank off the coast of Sicily, in the Mediterranean Sea: as a sudden and violent gale brought the stunning boat down to the seabed, at some 50 meters depth. Lynch died only 60 days after his acquittal: a former UK cabinet minister, Lord Deben, a friend of Lynch’s praised him as a significant figure in British tech and expressed that he was ready to start a new life following his acquittal. The tech billionaire was celebrating the dawn of a new chapter in his life, only to discover his own tomb instead. Five days after the shipwreck, divers from the Italian fire department rescue team recovered four bodies from the wreck: two of them were Lynchs: Mike and his teenage daughter Hannah. Life of the “British Bill Gates”, as he was nicknamed and famous for, ended in tragedy, suffocating inside a sunken sleeping cabin.
LONDON BOY
Lynch was born in Ilford, a suburb town some 9 miles north-east of London, in the summer of 1965 as the UK had just created the Greater London Council. He was a real “London Boy” and one of the first: at the time the newly created London borough was a white-British working-class residential area. The future tech mogul did not spend his childhood as a Londoner though: he grew up near Chelmsford, a town in Essex, even more east. His mother worked a nurse while his father was a firefighter who immigrated from Cork, Ireland. At 11, he won a scholarship to Bancroft's, a renowned institution which was a private, independent grammar school at the time. From there, he was admitted to Cambridge: he enrolled at the prestigious Christ's College, which hosted students such as John Milton, the greatest English poet; and biologist Charles Darwin, who discovered evolution. There he studied mathematics. After graduation, Lynch went on to read for a PhD in artificial neural networks (a pioneering way of machine learning) under the supervision of Peter Rayner: his filed PhD thesis studied adaptive pattern recognition.
SILICON FEN
Cambridge, the British tech hub of the country, renamed the Silicon Fen (from the Silicon Valley in California, while ‘fens’ refer to a broader region of low-lying, marshy land in eastern England), proved to be fertile soil for Lynch, too. The year is 1996: a young political leader, named Tony Blair, is warming up the engines to bring the Labour Party back to government after decades, with a historic victory; BritPop is dominating European charts, with Oasis and Blur fighting each other; every British teenage girl wants to be like one of the Spice Girls. Another young man, however, is less interested in music: at 31, Lynch founded a company called Autonomy, with David Tabizel and Richard Gaunt. It’s a start-up born as an offshoot of Cambridge Neurodynamics, a company specialized in fingerprints electronic recognition. It was not his first venture, though: he had set up a company in the late 1980s, while reading for his PhD. Lynett Systems was financed with a £ 2,000 loan negotiated in a bar and produced designs and audio products for the Atari ST, a famous personal computer in that era.
Autonomy, which collects and processes data, an old precursor of Data Analytics, becomes one of the UK's top 100 public companies. Soon after it gets listed on the Nasdaq Stock Exchange, the American share index of technology companies that was booming back in those years. Autonomy shares skyrocketed from a nominal value of £ 0.30 to a peak of £ 30 during the DotCom bubble. In 2008 the British tech guru was appointed Commander of the Order of the British Empire (CBE) in the Queen’s Birthday Honours.
We’re in a new era where information is the currency, and understanding that information is the differentiator in business.
Source: Mike Lynch, discussing the role of data in modern business during various public talks and interviews: Financial Times
THE BIG SHORT
The real turning point for Autonomy, however, came in 2011: the American computer giant HP (Hewlett-Packard) offered US $42 per share to buyout Lynch’s creation. The entire company was bought for $11.1 billion. Lynch became the new tycoon of Great Britain as the sale earned him the title of "The British Bill Gates". It has been claimed that he earned around $ 800 million from the sale. Enthusiasm, though, did not last long: just one year after the acquisition, HP fired him because profits of the overpaid Autonomy collapsed. The new owner smelled something fishy: suspicions grew that Lynch had sold a “scam”, hence his dismissal. The US computing firm made an $8.8 billion write-down on the acquisition, saying it had discovered “serious accounting improprieties” at the UK company.
This started a 12-year long legal battle. After so much time, in 2024 the 59-year-old Lynch was finally free. The holiday on the Bayesian was a reward to some of those who had stood by him. Morgan Stanley International chairman, Mr. Bloomer, who also died in the shipwreck had told the US court that Lynch had never attended company’s audit committee, because he was mostly interested in strategy and technology. So, basically, whether Autonomy’s books were rigged or not, he simply wasn’t aware. The outpouring of emotion at the US court was an indication of the intense pressure that the whole group of people had been under leading up to and during the 12-week case. Some months earlier, Lynch had suffered an ignominious extradition to the US, frogmarched from his Suffolk home in handcuffs, to face charges for falsely boosting Autonomy’s revenues to defraud the US tech giant. For years, the entrepreneur had been dogged by allegations of fraud and wrongdoing. Nevertheless, it did not prevent him from venturing into another start-up.
If you’re not failing sometimes, you’re not pushing hard enough.
Lynch has spoken frequently about the importance of failure in the process of innovation: Financial Times Interview