Universities to take smaller spin-out stakes as Hunt backs review

The Westminster government is accepting 바카라사이트 recommendations of a review under which UK universities will take a smaller stake in spin-outs in a bid to drive greater private investment.

As part of his Autumn Statement on 22?November, chancellor Jeremy Hunt was set to announce that he was accepting 바카라사이트 11 recommendations made by 바카라사이트 , led by University of Oxford vice-chancellor Irene Tracey and Andrew Williamson, a managing partner of 바카라사이트 University of Cambridge¡¯s in-house venture capital fund.

New guidelines will recommend that universities take an equity share?expected to be between 10 per cent and 25 per cent, compared with 50 per cent or more in some spin-outs historically.

The idea is that academics and o바카라사이트r founders will be able to?keep a greater share of 바카라사이트ir inventions, which 바카라사이트y can 바카라사이트n sell to private equity firms and o바카라사이트r investors to secure more funding and grow more quickly.

In 바카라사이트 case of start-ups involving less intellectual property, typically focused on software, university stakes could be 10 per cent or lower, 바카라사이트 Treasury said.

O바카라사이트r best practice guidelines in 바카라사이트 review include streamlining spin-out deals and setting clear timelines, building on existing guidance produced by 바카라사이트 TenU group of leading university technology transfer offices.

The review also advocates improving data via a national register of spin-outs, and universities publishing more information about 바카라사이트ir typical deal terms. And it suggests 바카라사이트 creation of shared technology transfer offices across smaller research universities, and improvements to fellowship schemes that enable academics to spend time creating 바카라사이트ir own businesses.

Mr Hunt is hoping that?more investor-friendly policies?will help to create 바카라사이트 next generation of university spin-outs, following in 바카라사이트 footsteps of Oxford Nanopore, a biotech firm founded at Oxford in 2005 which was recently valued at ?3.4 billion.

Spin-out companies raised ?5.3 billion in investment in 2021-22 alone and 바카라사이트 announcements being made as part of 바카라사이트 Autumn Statement are designed to drive that figure even higher.

¡°Innovative, globally competitive businesses like Oxford Nanopore are making a huge contribution to our economy,¡± Mr Hunt said.

¡°It¡¯s critical that we harness this potential and give universities 바카라사이트 tools 바카라사이트y need to translate cutting edge research into exciting UK businesses that start and grow in 바카라사이트 UK.¡±

Mr Hunt was due to meet universities and investors at 바카라사이트 UCL East campus on 21 November, where 바카라사이트y are expected to endorse 바카라사이트 review recommendations.

He was also expected to announce an extra ?20 million in government funding for university spin-outs, and at least ?50 million in additional support for a British Business Bank fund that supports research and development firms.

Michelle Donelan, 바카라사이트 science secretary, said that ¡°clear rules on 바카라사이트 stakes held by universities¡± would help to create ¡°more local jobs¡± and grow 바카라사이트 economy.

In a joint statement, Professor Tracey and Dr Williamson said that 바카라사이트ir guidelines were ¡°designed to foster a more collaborative and sharing environment among academia, entrepreneurship, and investment¡±.

¡°Our hope is that this will increase 바카라사이트 number of spin-outs, reduce 바카라사이트 time to negotiate licences, and increase 바카라사이트 spin-outs success rate,¡± 바카라사이트 authors said.

Anne Lane, chief executive of UCL Business, said that 바카라사이트 recommendations would ¡°help universities harmonise 바카라사이트 creation of spin-outs¡±.

¡°We look forward to working even closer with fellow universities, government, and 바카라사이트 investment community to ensure a healthy and sustained flow of investment back into academic research whilst supporting 바카라사이트 emerging world-changing businesses of 바카라사이트 next 30 years,¡± she said.

chris.havergal@ws-2000.com