North-east universities launch joint spin-out fund

Universities in north-east England are launching a new spin-out fund in collaboration with their local mayor, in what has been billed as a move that will help “derisk” attempts to commercialise academic research.

The five institutions involved – Durham, Newcastle, Northumbria and Teesside universities and the University of Sunderland – have collectively invested £12.5 million in the fund, with Kim McGuinness, who was elected mayor for the north-east in 2024, contributing a further £12.5 million.

With an aim of supporting at least 30 spin-out firms in its first five years in operation, The North East Spinout Inspire Fund will provide funding for high-potential start-ups that seek to translate research into businesses in areas such as clean technologies, digital innovation, life sciences and advanced manufacturing.

Officially launched on 11 June, those involved said it was needed to fill a “critical gap” in support for early-stage companies, where risk is higher and funding is often harder to secure from private sector investors alone.

It is hoped that the fund will also strengthen university links to private sector investors and share the risks of investing, as well as help retain high-growth companies in the region and create new jobs.

It comes in the week that Universities UK announced it wants to double the amount of industry investment going into university spin-outs and student-led start-ups.

A report released last week by the Royal Academy of Engineering also found that spin-out activity is extending beyond the golden triangle of Oxford, Cambridge and London and the value of university spin-out companies has tripled since 2020,

McGuinness called the new fund a “bold move” that will “recognise the talent on our campuses to launch new enterprises, create jobs and grow the economy”.

Three businesses have already been supported by the fund; Newcastle spin-out NunaBio; H2CHP, which builds on research into electric generators, led by Tony Roskilly of Durham University; and AI-powered digital healthcare firm Gnosis Health.

Collectively they have received more than £1 million, which has unlocked more than £5 million in funding from other investors and grant providers.

Andy Long, vice-chancellor of Northumbria University and chair of Universities for North East England, said: “This Fund will help our researchers go further and faster in converting their ideas into successful businesses, creating jobs and prosperity in our region.   

“We are confident this investment will attract high-quality researchers and investors to the region, with the investment leading to clear benefits for the people of our region, the local economy, and the national economy.”

tom.williams@timeshighereducation.com