A shift in investor views on university spin-outs has unfolded in the past year.
- The focus on equity stakes in spin-outs has been addressed, reducing previous concerns.
- Oxford’s Vice Chancellor noted a positive change in spin-out funding perception.
- 49 UK universities have adopted new guidelines to support spin-outs.
- Government backing increases for proof-of-concept projects to reinforce confidence.
In the year since the government-commissioned review on university spin-outs, investor concerns over equity stakes have significantly subsided. Dr. Andrew Williamson, co-author of the review, expressed that previous debates surrounding equity splits had overshadowed the broader positive potential of spin-outs. He highlighted the necessity to move past this narrow focus to foster more constructive conversations about academic entrepreneurship.
Oxford University Vice Chancellor, Professor Irene Tracey, highlighted a remarkable turnaround in investor attitudes towards spin-out funding. She recalled how initial negativity has shifted to an appreciation of the swift advancements made. Tracey emphasised the vast potential of university spin-outs and the need to adjust expectations accordingly.
The review anniversary event revealed that as many as 49 UK universities have now embraced guidelines aimed at supporting spin-outs. These guidelines promote technology transfer collaborations, helping academics from smaller institutions commercialise their research more effectively. By granting equity shares that mirror the level of support universities provide, investor concerns over excessive equity demands have been alleviated.
Additionally, the review advocated for increased government support to proof-of-concept funds, essential for building confidence before companies spin out. Chancellor Rachel Reeves recently committed £40 million over five years for these initiatives, also hinting at a structural overhaul of pension funds to boost investments in high-risk ventures and UK equities. This move aligns with the review’s recommendations to strengthen the UK’s capital market support for spin-outs.
The focus on equity in spin-outs has shifted, paving the way for more constructive progress in university entrepreneurship.
