Independent Review of University Spin-Outs

As long term advisers to spin out companies we very much welcomed the initiative that gave rise to the Independent Review on University Spin-Outs.

This review, reporting on the current status of spin-out activity in the UK noted the success of spinout activity in the UK with investment in spinouts increase from £1.06Bn in 2014 to £5.3Bn in 2022 – second only to the US in terms of total investment in spinouts.

The review noted that in the UK it was not only science and technology that was generating spinouts but that humanities, social sciences and the arts were also beginning to capitalise on tech transfer opportunities; thereby providing opportunities for the UK to become very successful in generating significant value from spinouts.

The review identified the following key features of a successful spinout ecosystem:

• The existence of a diverse and experienced portfolio of academic founders
• The quality of anchor institutions  - particularly Universities  - enabling the development of leading IP
• A range of professional service providers and support to the spinout entities and their founders
• Accessible investment
• Supply of early employees
• Infrastructure

In the UK the review acknowledged that Cambridge and Oxford were beginning to exhibit many of the characteristics outlined above and were continuing to evolve.

There were a number of detailed recommendations on the back of these observations, which in response to the review, the Government accepted.

Actions promised by Government include:

• Working with tech transfer offices to improve the spinout process through standardisation of best practice including model terms
• Funding to facilitate tech transfer and proof of concept research – with £20million announced
• The mapping of support services available to founders and develop proposals to fill gaps. UKRI will additionally make available entrepreneurship training to all PhD students it funds.
• Improvement in access to equity investment. This includes establishing a new growth fund and extending British Patient Capital to 2033/34 with £3billion of funding
• It will be made easier for academics to move into commercialisation

Taking a unified approach to the spinout industry in the UK is critical to the maximisation of the commercial opportunities within our research institutions and it is to be hoped that this Review and the Governmental response to it move us along this path.

To discuss in further detail, please contact one of our Technology Team members.