A lack of access to capital, particularly proof-of-concept funding, is stifling growth in the UK’s university spinout sector, according to a recent survey conducted by our Symbiosis IP team.
Described by one respondent as a “broken funding model”, the sector’s lack of funding and difficulty securing much-needed investment capital, particularly outside of the South East, are two of the most urgent issues facing the university spinout sector.
Respondents also noted a lack of access to the senior management and professional services outside of the ‘Golden Triangle’ of London, Oxford, and Cambridge needed to commercialise university research.
Furthermore, contrary to recent guidance issued in the TenU University Spin-out Investment Terms (USIT) Guides, 70% of respondents believed that reducing a university’s institutional equity stake in spinouts would not help the sector to grow.
Lee Samuel, director and patent attorney at Symbiosis IP, said: “The results of our survey show a clear scepticism concerning the recent guidance. 60% of respondents, for example, state that they have not, or are not expecting to, change the amount of institutional equity in line with recommendations within the USIT Guides.
“A sense of frustration is also palpable from the responses, with many sceptical of the effectiveness of one-size-fits-all policies for universities that otherwise vary significantly in the research specialisms, resources, capabilities and facilities that they can offer.
“Greater investment for universities outside of the South East should remain a top priority if the UK is to allow institutions to capitalise on their research and ensure its spinout sector remains competitive.”
The findings in the survey are based on responses from senior stakeholders engaged in technology transfer and spinouts, including heads of technology transfer, chief business officers, and heads of IP and commercialisation.