The UK Life sciences and AI University spinout landscape

The UK has long been recognised as a hub for world-class education and scientific research, with its academic institutions consistently producing ground breaking discoveries across various disciplines.

In order for these discoveries to have a meaningful impact on society and the economy, they need to be transformed into viable products, services, and technologies. This is where University spinouts have made significant contributions. Born out of the research and expertise nurtured within academic institutions, University spinout companies play an increasingly important role in making the UK a frontrunner for global innovation.

However, recent news and press coverage have called into question the impact that the Universities themselves are having on the commercial success of their spinout companies.

Therefore, with the use of Beauhurst’s high-growth database, we collected data on 584 University spinout companies who received equity funding between calendar year 2012 – 2022, who have developed spinouts commercial ventures within:

• Life sciences
• MedTech
• Artificial Intelligence (AI)
• Genomics

With the view to answering the question: Do UK based University spinout companies have a greater chance of business success than their non-academic peers? 

The report explores the key themes identified from within the data that indicates where success presides.

Amongst some of the key themes that emerged from the data, we explore:

1. The funding and valuation trends among University spinout companies vs. non-academic companies over the last decade.
2. The presence of an ‘Oxbridge premium’ as the University of Oxford and the University of Cambridge lead the way among institutions creating commercial opportunities from academic research.
3. Whether large innovation grant funding is the key to success for academic spinout company value growth.

There are currently 1,709 active University spinouts in the UK; 34% of these are within the aforementioned sectors. These sectors are the subjects of interest both within academia and government, and it is felt that the principles and findings explored here are applicable to all University spinout sectors.