Salford and Liverpool universities climb league table of spinouts
The University of Liverpool and the University of Salford were big climbers in a league table of the best universities at supporting enterprise and spin out companies, but the report concluded that far more needs to be done to promote and encourage enterprise from universities, particularly in creating tech spinouts.
Compiled by venture capital firm Octopus Ventures, the report, Gateways to Growth, sets out to highlight the essential role the UK’s universities stand to play in building the next generation of deep tech businesses.
Liverpool climbed 12 places to enter the top 20 at 19, while Salford also leapt 3 places to 26th in the table, since the survey was last done in 2020.
The University of Manchester dropped 10 places to 33, while Manchester Metropolitan University fell 25 places to 82nd.
The ranking was determined by factors such as numbers of patents, spin-out companies created and recent portfolio success, which for chart topping Dundee University included the £2.2 billion IPO of Exscientia on the US NASDAQ, one of the largest ever UK university exits.
Dr Amy Nommeots-Nomm
Dr Amy Nommeots-Nomm, Investment Associate, Octopus Ventures, said: “By harnessing local pockets of excellence like these, we can help the whole of the UK flourish.
“Since our last report, the race to tackle Covid-19 highlighted the power of academic institutions to mobilise quickly and develop solutions which transform millions of lives. Sustained funding for research and innovation, and consistent support for spin outs is vital if the UK’s universities are to continue generating globally impactful technologies.”
The US, Germany, South Korea, Israel and Japan invest more than 3% of their GDP into research and development. The UK invests 2.4%. But for every £1 invested in research, the government sees around £3.60 in economic benefit.
Her colleague Zoe Reich, General Partner of the Octopus Investments pre-seed deep tech fund, commented: “While spinouts are faced with a complicated ecosystem, during the research stages of the report we were pleased to find that a number of institutions are working to identify and fix the current challenges.
“For example, we’ve seen a rise in the amount of capital available to invest in spin-outs. Northern Gritstone’s £250 million mandate to deploy capital across spinouts from Manchester, Leeds, and Sheffield, and Mindforge’s intention to raise a fund to deploy across the Midlands, are exciting developments. In July, we also saw the announcement from the UK Government that it will unlock 5% of UK pension capital for investment into high growth companies. It’s reassuring to see that capital is being raised with the specific mandate of supporting the growth and success of spinouts in the UK.”
Prof Janice Allan
Professor Janice Allan, Dean of University of Salford Business School, commented: “We are pleased to learn that the University of Salford has risen three spots to rank 23rd in the UK in the latest Entrepreneurial Impact Ranking by Octopus Ventures. This is a significant affirmation of our focused commitment to fostering an entrepreneurial culture and mindset amongst both staff and students.
“Salford Business School plays a central role in this achievement. Our efforts directly resonate with the report’s emphasis on the transformative power of deep tech in solving global challenges. By equipping our students with essential digital skills and understanding of immersive technologies, we lay the foundation not just for employability but also for the entrepreneurial spirit that can disrupt industries and create new markets.
“In line with the report’s call for coordinated, long-term support for deep tech, we are committed to being a catalyst in this ecosystem, partnering with entrepreneurs to translate academic achievements into world-changing businesses.”
