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 Symbiosis IP, a part of professional services group Gateley.

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.

Andrew Tingey, director of Licensing & IP Transactions at Symbiosis IP, said: “Despite their best intentions, the USIT Guides have not convinced many university technology transfer offices that reducing institutional equity is the way forward with 60% stating that they have not, or are not expecting to, change the amount of equity as a result of these guides.

“Many respondents were also sceptical about the effectiveness of applying sweeping, one-size-fits-all policies to universities in the UK, which vary significantly in terms of their overall ‘deal’ for spin outs, as well as their research specialisms, resources, capabilities, and facilities.”

He continued: “Our survey demonstrated a palpable sense of frustration within the sector, with respondents referencing a funding model that is pushed to breaking point.

“It is clear that significant investment and support focused on universities outside of the South East is needed to allow institutions to capitalise on their research and ensure the UK’s 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 & commercialisation.

A summary report on the survey, titled Institutional equity and enterprise: Does one size fit all?, is available to view here.

ENDS