Equity investment into UK Spinouts

Investment into the UK’s Spinout Companies

In collaboration with Parkwalk, we’ve analysed the equity investments made into UK spinouts to spot emerging trends and patterns.

Introduction

Academic spinouts are a key element of the innovation ecosystem. By commercialising the intellectual property created in the UK’s universities, they facilitate the application of these technologies in the world. 

Beauhurst tracks all the UK’s spinout companies that have been incorporated since 2011, and will also track those that are older but have shown other signs of growth ambition (e.g. have raised equity or have attended an accelerator). We collaborate with all the UK’s universities to ensure we have comprehensive coverage of the spinout population at any time. 

This report focuses in on one area of the activity of these spinout companies: equity investment. We detail the equity investment activity into spinout companies, as well as the source and destination of these investments. Beauhurst captures both announced and unannounced fundraisings by checking through Companies House records as well as across the web. We employ a fusion of artificial intelligence and human data experts to ensure the accuracy of this data.

Parkwalk comments

“This report reinforces our view that despite world-leading research, UK “Deep Tech” is still hugely underfunded at the scale-up stage. Time and again we see extremely innovative companies raising early stage funding and then hitting the “Valley of Death” at Series B or C. This leads to huge lost opportunities for the UK: The successful companies often lose their technical lead to better funded international rivals or are sold to international acquirers, losing the benefits to the UK: the knowledge, skill sets, employment and taxes.”

The key findings from 2019

Key findings from Beauhurst Parklwak report on Investment into academic spinout companies in the UK

About the authors

Henry Whorwood headshot circle

henry whorwood

Henry leads Beauhurst’s research and consultancy, and is an expert on equity finance and high-growth business. He has worked on briefs for clients including Barclays, Syndicate Room, Innovate UK, Smith & Williamson and the British Business Bank. Henry regularly gives presentations on finance and market trends at events around the country. Henry studied Classics at the University of Oxford.

Ava scott

Ava is an expert data cruncher and business analyst in the Research & Consultancy team. She provides research and insights for multiple clients, including the Royal Academy of Engineering, Syndicate Room and Penningtons Manches. She holds a BA in Human Sciences from the University of Oxford.

Where does the data come from?

All data featured comes from the Beauhurst platform, a searchable database of the UK’s fastest-growing startups and scaleups.