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Mike Lynch (businessman)

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Mike Lynch
OBE DL FRS FREng
Lynch in 2014
Born
Michael Richard Lynch

(1965-06-16)16 June 1965
Ilford, London, England
Died19 August 2024(2024-08-19) (aged 59)
Mediterranean Sea, off Porticello, Santa Flavia, Sicily
Alma materUniversity of Cambridge (MA, PhD)
Known forAutonomy Corporation
SpouseAngela Bacares
Scientific career
FieldsSoftware engineering
ThesisAdaptive techniques in signal processing and connectionist models (1990)
Doctoral advisorPeter J.W. Rayner

Michael Richard Lynch OBE DL FRS FREng (16 June 1965 – 19 August 2024) was a British technology entrepreneur who co-founded Autonomy Corporation and founded Invoke Capital. He then became a co-founder, alongside Invoke Capital, of the cybersecurity company Darktrace. He had various other roles, including in an advisory capacity.

Following an undergraduate degree, a doctorate and post-doctoral research at the University of Cambridge, Lynch applied his research in machine learning to set up software companies and become a major figure in Silicon Fen. He was described in the press as the British equivalent of the American businessman Bill Gates, with an estimated worth of £852 million in 2023.

The sale of Autonomy to Hewlett-Packard in 2011 led to accusations of fraud and resulted in civil litigation in the UK and Lynch's extradition to the US. He went on trial in 2024 and was found not guilty of all charges. In August 2024, Lynch died after his family's superyacht, Bayesian, capsized and sank off the coast of Sicily.

Early life and education

Lynch was born in Ilford, London Borough of Redbridge, on 16 June 1965.[1][a] and grew up near Chelmsford in Essex.[4] His mother was a nurse from County Tipperary and his father a firefighter from County Cork in Ireland.[5]

Aged 11, he won a scholarship to Bancroft's School, Woodford.[6] He was later the lead Patron of the Bancroft's Foundation, which was established to provide means-tested scholarship support to enable bright pupils to study at the school regardless of family income.[7] From Bancroft's he went to Christ's College, Cambridge, to study Natural Sciences.[4] After graduating he studied for a PhD in artificial neural networks (a form of machine learning) under the supervision of Peter Rayner, director of studies in engineering at Christ's College, and produced a thesis with the title Adaptive techniques in signal processing and connectionist models.[8][9][10][11] He undertook a research fellowship in adaptive pattern recognition.[12]

Career

Lynch set up his first company in the late 1980s, while he was studying for his PhD. Lynett Systems Ltd was financed with a £2,000 loan negotiated in a bar, and produced designs and audio products including synthesisers and a sampler for the Atari ST.[8][13] In 1991, he founded Cambridge Neurodynamics, which specialised in computer-based fingerprint recognition.[8] There were three spin-offs from Cambridge Neurodynamics: Neurascript, which searched business documents based on character recognition and was bought by German company Dicom in 2004; NCorp, which searched databases; and Autonomy which searched unstructured sources including phone calls, emails and videos.[14][15]

In 1996, Lynch founded Autonomy, a search software company, with David Tabizel and Richard Gaunt.[8] With Lynch as chief executive officer (CEO), Autonomy become one of the UK's top 100 public companies, and a leading company in Silicon Fen.[15][6] Lynch was described in the press as the British equivalent of the American businessman Bill Gates.[16][17] In October 2011, Autonomy was sold to Hewlett-Packard for more than $11 billion (£8.6 billion).[15] Lynch made an estimated $800 million from the sale.[15]

After the sale, Lynch founded a venture capital firm, Invoke Capital.[6] One of the first companies backed by Invoke Capital was cybersecurity firm Darktrace.[8] Invoke Capital became the biggest shareholder of Darktrace, with Lynch and his wife Angela Bacares being the second biggest, holding shares worth nearly £200 million. Many of the staff at Darktrace, including its CEO, had moved across from Autonomy and Lynch was a member of the board until 2018 and continued as a member of the advisory council until 2021. Lynch was a member of the Darktrace science and technology council until February 2023. As well as having to deal with questions about Lynch's involvement with the company, Darktrace had to counter scepticism about its technology, which analysts referred to as "snake oil".[6][18]

Other technology companies backed by Invoke Capital include Featurespace, which specialises in software to detect and prevent fraud and financial crime.[19] Invoke Capital has invested in the legal technology firm Luminance, established in collaboration with Slaughter and May.[20] Sophia Genetics, a Swiss medical data company, is also backed by Invoke Capital.[21]

As a leading technology entrepreneur, Lynch held a number of positions on boards and committees. When he was charged with fraud in the United States he resigned from his role as a government advisor on the Council for Science and Technology and from Royal Society committees. He had previously been on the board of Cambridge Enterprise, Royal Botanic Gardens in Kew, the BBC, the British Library, Nesta, and the Francis Crick Institute.[22]

Civil and criminal cases

See also: Hewlett-Packard § Takeover of Autonomy

In November 2012, Hewlett-Packard announced a US$8.8 billion (£5.5 billion) writedown of assets following their purchase of Autonomy due to "serious accounting improprieties, disclosure failures and outright misrepresentations" which occurred before the acquisition and artificially inflated the value of Autonomy. Lynch denied the allegations.[23] The allegations were investigated by the UK Serious Fraud Office, who announced in January 2015 that it was ending its investigation with no action due to insufficient evidence in respect of some aspects of the allegations, while other aspects were ceded to the United States authorities.[24] In November 2018, Lynch was indicted for fraud in the US along with Stephen Chamberlain, former vice president of finance at Autonomy. Earlier in 2018 Sushovan Hussain, Autonomy's former finance chief officer, had been found guilty of fraud in the US and sentenced to five years in prison.[25][26]

The civil case was heard at the Rolls Building, London.

In March 2019, Hewlett-Packard brought a civil action for fraud in the High Court in London. The action alleged that Autonomy CFO Sushovan Hussain and founder Lynch "artificially inflated Autonomy's reported revenues, revenue growth and gross margins". The case was heard by Mr Justice Hildyard sitting for 93 days over a period of nine months at the Rolls Building.[26][27][28] The judge delivered his conclusions in January 2022, ruling that Hewlett-Packard had substantially succeeded in their claims. Damages were to be decided later, but the judge said they were likely to be considerably less than the $5 billion claimed by Hewlett Packard.[26][28]

While the civil trial was taking place in London, the American authorities were seeking Lynch's extradition to face criminal charges of conspiracy and fraud in the United States. Through his lawyers, Lynch said he "vigorously rejects all the allegations". As a formality, he submitted himself for arrest in February 2020, and was released on bail of £10 million by Westminster Magistrates' Court.[29] The case created a debate about the workings of the Anglo-American extradition treaty of 2003. Five former cabinet ministers signed a letter to The Times arguing against the extradition, and MP David Davis said in parliament that it was an attempt by the American authorities to "exercise extraterritorial jurisdiction".[30][31]

In July 2021, a district judge ruled at Westminster Magistrates' Court that Lynch could be extradited to the US.[32] Lynch applied for a judicial review; the application was rejected by High Court Judge Mr Justice Swift in January 2022 and Home Secretary Priti Patel approved his extradition.[33][28] During the extradition proceedings Lynch was represented by Alex Bailin KC, who argued that Lynch should face trial in the UK.[30] After a further appeal failed, Lynch was flown to the US in May 2023, and held under house arrest in San Francisco to await trial.[34]

Lynch and Chamberlain went on trial in San Francisco on 18 March 2024. Lynch was charged with 16 counts of wire fraud, securities fraud and conspiracy, while Chamberlain faced 15 counts of wire fraud and conspiracy. Both pleaded not guilty.[35] The court heard evidence and arguments over the course of 11 weeks, and one count of securities fraud was dropped. The jury retired for deliberation on 4 June.[36] On 6 June, Lynch and Chamberlain were found not guilty of all charges.[37] Chamberlain died after being struck by a car while running in Stretham, Cambridgeshire, on 17 August.[38]

Death

Lynch died after his superyacht, Bayesian, sank off the coast of Sicily, on 19 August 2024, with Lynch and 21 other people on board. Lynch was celebrating after having been cleared of charges.[39] According to witnesses, the yacht, which was anchored off Porticello, Santa Flavia, was struck by a waterspout during a powerful storm in the early hours of the morning.[40] Lynch's wife, Angela Bacares, was among the 15 people rescued.[41] On 22 August, the bodies of Lynch and four others were recovered from the boat and identified by the Coast Guard. His teenage daughter Hannah remains missing.[42]

Personal life

Loudham Hall in Pettistree

Lynch was married to Angela Bacares and they had two daughters.[6] In 2023, the Sunday Times Rich List estimated the couple's net worth at £852 million.[43] Lynch's entry in Who's Who lists his recreations as jazz saxophone and preserving rare breeds.[1] He kept a herd of Red Poll cattle on his Loudham Hall estate at Pettistree, in East Suffolk.[44]

Awards and honours

Lynch was appointed an OBE for services to enterprise in the 2006 New Year Honours.[6] In June 2008, he was elected a Fellow of the Royal Academy of Engineering.[45] In 2011, he was named as the most influential person in UK IT by Computer Weekly.[46] In 2014, Lynch was elected a Fellow of the Royal Society[47] and made a Deputy Lieutenant of the County of Suffolk.[48] He was a Lady Margaret Beaufort Fellow at Christ's College, Cambridge.[4]

Notes

  1. ^ Sometimes described as having been born in Ireland, Lynch has confirmed he was born in Ilford.[2][3]

References

  1. ^ a b "Lynch, Michael Richard". Who's Who. Vol. 2015 (online edition via Oxford University Press ed.). A & C Black. (Subscription or UK public library membership required.)
  2. ^ "Who is Mike Lynch, the tech tycoon born to Irish parents, missing after a luxury yacht sank off Sicily?". The Irish Times. 19 August 2024. Archived from the original on 22 August 2024. Retrieved 20 August 2024.
  3. ^ "Cambridge tech entrepreneur Mike Lynch and his 18-year-old daughter still missing after superyacht sinks off coast of Sicily". Cambridge Independent. 19 August 2024. Archived from the original on 20 August 2024. Retrieved 20 August 2024.
  4. ^ a b c "Mike Lynch". Christ's College, Cambridge. Archived from the original on 20 August 2024. Retrieved 20 August 2024.
  5. ^ "Dr Michael Lynch trial to go ahead in California in March". The Irish Post. 22 February 2024. Archived from the original on 22 March 2024. Retrieved 22 March 2024.
  6. ^ a b c d e f "Mike Lynch: the rise and fall of the extradited tech tycoon". The Guardian. 12 May 2024. Archived from the original on 22 August 2024. Retrieved 22 March 2024.
  7. ^ Kitchen, The Web (20 February 2012). "Bancroft's School". Bancroft's. Archived from the original on 22 August 2024. Retrieved 20 August 2024.
  8. ^ a b c d e Shead, Sam; Ghosh, Shona (26 December 2018). "Inside the life of Mike Lynch, who sold his search startup to HP for $11 billion and was charged with fraud". Insider. Archived from the original on 22 August 2024. Retrieved 1 July 2021.
  9. ^ "The Quest for Meaning". Wired. February 2000. Archived from the original on 13 May 2012. Retrieved 10 March 2017.
  10. ^ "Rayner, Prof. Peter John Wynn". Who's Who. Vol. 2015 (online edition via Oxford University Press ed.). A & C Black. (Subscription or UK public library membership required.)
  11. ^ "This is the thinking computer's man". Independent. 22 November 1999. Archived from the original on 26 March 2024. Retrieved 26 March 2024.
  12. ^ Garside, Juliette (19 August 2011). "Profile:Mike Lynch". The Guardian. Archived from the original on 15 November 2016. Retrieved 12 December 2016.
  13. ^ "The Searcher". Forbes. 3 April 2000. Archived from the original on 26 March 2024. Retrieved 26 March 2024.
  14. ^ Connell, David; Probert, Jocelyn (January 2010). "Exploding the Myths of UK Innovation Policy" (PDF). Judge Business School. Archived (PDF) from the original on 26 March 2024. Retrieved 26 March 2024.
  15. ^ a b c d "Mike Lynch: Autonomy founder's fraud trial begins in US". BBC News. 19 March 2024. Archived from the original on 26 March 2024. Retrieved 26 March 2024.
  16. ^ Browne, Ryan (20 August 2024). "'Britain's Bill Gates': Who is Mike Lynch, the UK tech entrepreneur missing after superyacht sinks?". CNBC. Archived from the original on 21 August 2024. Retrieved 21 August 2024.
  17. ^ Strick, Katie (21 August 2024). "Missing tycoon Mike Lynch: the 'British Bill Gates' who was 'starting a second life'". Evening Standard. Archived from the original on 22 August 2024. Retrieved 21 August 2024.
  18. ^ "'Snake oil': doubts loom over tech firm Darktrace's high-octane sales strategy". The Guardian. 25 January 2022. Archived from the original on 31 January 2022. Retrieved 31 January 2022.
  19. ^ "Lynch backs software company that seeks to predict behaviour". Financial Times. 10 June 2014. Archived from the original on 9 July 2021. Retrieved 1 July 2021.
  20. ^ "Mike Lynch Steps Down From Luminance Board To Fight US Extradition". Artificial Lawyer. 5 February 2022. Archived from the original on 26 March 2024. Retrieved 26 March 2024.
  21. ^ "Autonomy boss Mike Lynch invests in Swiss DNA analysis start-up". The Standard. 8 July 2014. Archived from the original on 26 March 2024. Retrieved 26 March 2024.
  22. ^ "Mike Lynch steps down as government adviser following criminal charges". Financial Times. 30 November 2018. Archived from the original on 26 March 2024. Retrieved 26 March 2024.
  23. ^ Rushe, Dominic; Arthur, Charles; Garside, Juliette (20 November 2012). "Hewlett-Packard blames Autonomy 'improprieties' for $8.8bn writedown". The Guardian. Archived from the original on 22 August 2024. Retrieved 26 March 2024.
  24. ^ "Autonomy HP sale investigation by Serious Fraud Office closes". BBC. 19 January 2015. Archived from the original on 22 January 2015. Retrieved 10 February 2015.
  25. ^ "Ex-Autonomy boss Mike Lynch charged with fraud in the US". BBC. 30 November 2018. Archived from the original on 22 August 2024. Retrieved 26 March 2024.
  26. ^ a b c "HP wins multibillion-dollar fraud case over Autonomy sale". BBC. 28 January 2022. Archived from the original on 28 January 2022.
  27. ^ "Rolls judge warns US over epic trial". The Law Society Gazette. 8 July 2019. Archived from the original on 22 August 2024. Retrieved 26 March 2024.
  28. ^ a b c "Tech entrepreneur Mike Lynch can be extradited to US, rules Priti Patel". The Guardian. 28 January 2022. Archived from the original on 22 August 2024. Retrieved 26 March 2024.
  29. ^ "UK tech giant founder arrested over US extradition". BBC. 5 February 2020. Archived from the original on 5 February 2020. Retrieved 6 February 2020.
  30. ^ a b "Autonomy co-founder's lawyers attack 'overweening' US extradition effort". The Guardian. 9 February 2021. Archived from the original on 22 August 2024. Retrieved 26 March 2024.
  31. ^ "One-time Brexit Secretary David Davis demands Mike Lynch's extradition to US be halted". The Register. 23 January 2020. Archived from the original on 22 August 2024. Retrieved 26 March 2024.
  32. ^ "British businessman Mike Lynch faces extradition to US". The Guardian. 22 July 2021. Archived from the original on 22 August 2024. Retrieved 26 March 2024.
  33. ^ "Software billionaire loses bid to delay decision on US extradition". The Law Society Gazette. 26 January 2022. Archived from the original on 19 August 2024. Retrieved 26 March 2024.
  34. ^ "Autonomy founder Mike Lynch extradited to US after losing appeal". The Guardian. 12 May 2023. Archived from the original on 12 May 2023. Retrieved 12 May 2023.
  35. ^ "What have we learned from week one of Mike Lynch's US fraud trial?". The Guardian. 23 March 2024. Archived from the original on 22 August 2024. Retrieved 26 March 2024.
  36. ^ "Mike Lynch: four key takeaways from the fraud trial of 'Britain's Bill Gates'". The Guardian. 5 June 2024. Archived from the original on 22 August 2024. Retrieved 6 June 2024.
  37. ^ "Mike Lynch 'elated' as he's cleared of all fraud charges over $11bn sale of Autonomy to HP". Cambridge Independent. 7 June 2024. Archived from the original on 20 August 2024. Retrieved 20 August 2024.
  38. ^ "Mike Lynch's co-defendant in US fraud trial 'fatally struck' by car while jogging". The Guardian. 19 August 2024. Archived from the original on 22 August 2024. Retrieved 20 August 2024.
  39. ^ Grierson, Jamie; Weaver, Matthew; Tondo, Lorenzo (22 August 2024). "Mike Lynch confirmed dead after yacht sank off Sicily coast during storm". The Guardian. ISSN 0261-3077. Retrieved 22 August 2024.
  40. ^ "Bayesian yacht Sicily latest: UK tycoon Mike Lynch, 18-year-old daughter, and chef among missing after yacht sinks". BBC News. Archived from the original on 19 August 2024. Retrieved 19 August 2024.
  41. ^ Montgomery, Samuel (20 August 2024). "Inside the £30m Bayesian superyacht". Daily Telegraph. London. Archived from the original on 21 August 2024. Retrieved 21 August 2024.
  42. ^ Evans, Holly (19 August 2024). "Mike Lynch yacht latest: Search for daughter Hannah continues as coastguard identifies billionaire's body". The Independent. Archived from the original on 22 August 2024. Retrieved 22 August 2024.
  43. ^ "Who is Mike Lynch? The British billionaire missing after sailing superyacht sinks". The Independent. 21 August 2024. Archived from the original on 21 August 2024. Retrieved 21 August 2024.
  44. ^ "Red Poll Newsletter No. 109, Winter 2017" (PDF). Red Poll Cattle Society. 2017. Archived (PDF) from the original on 19 April 2022. Retrieved 26 March 2024.
  45. ^ "List of Fellows". Archived from the original on 8 June 2016. Retrieved 21 October 2014.
  46. ^ "UKtech50: Meet Mike Lynch, the most influential person in UK IT". Computer Weekly. 8 December 2011. Archived from the original on 26 March 2024. Retrieved 26 March 2024.
  47. ^ "Dr Michael Lynch OBE FREng FRS". Archived from the original on 2 May 2014.
  48. ^ "Deputy Lieutenants of the County of Suffolk". Archived from the original on 30 March 2014.
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