Spin-out founders set to gain more financial benefits
Academics and students who commercialise their ideas are set to gain greater financial benefits from their efforts after the government accepted the recommendations of a review into the way in which universities support spin-outs.
The Treasury launched the review in March as part of the chancellor’s plan to nurture “the world’s next Silicon Valley”. It came after complaints from technology founders and some venture capital investors over the amount of equity demanded by universities, particularly when compared with their peers in the United States, as well as the time involved and complexity of negotiating deals.
Hundreds of technology companies are spun out of Britain’s universities every year. In 2022 the 1,166 active spin-outs raised £2.13 billion in new investment, according to Beauhurst, a data provider.