Oxford University recently hosted an event aiming to attract investors to emerging deep-tech startups in the area. The event, organized by Oxford University Innovation, focused on sectors such as quantum computing, climate tech, AI, space, and energy. The goal was to bring attention to research-based businesses in the city and surrounding areas. Despite Oxford’s strong startup ecosystem and infrastructure, such as the Harwell innovation campus, raising capital remains a challenge, especially when it comes to translational funding for spinout companies.
The lack of capital for new technologies transitioning from laboratory research to viable products and commercial success is a common challenge for universities. Access to translational funding, needed to commercialize research work, is crucial for spinout companies. While the UK government announced a £20 million fund to support spinouts, more funding is required to support the large scale of opportunities presented by universities across the country. Gibbs stresses the need for further government investment and partnerships with businesses to support the journey of turning Britain into a science superpower.
Oxford University provides support for spinouts through various funding opportunities, such as awards under the University Challenge Seed Fund. These funds have helped create 40% of the university’s spinouts. However, additional funding is necessary for Seed, Series A, and growth finance, which is why the university is actively seeking investors. Since 2010, spinouts from the university have raised £2.5 billion in external finance and 10 are listed in London or New York. Increasing the flow of finance remains a policy priority for the university, with the aim of attracting more investors to support emerging technologies.
Alongside facilitating finance, Oxford University Innovation assists researchers in identifying use cases for technologies. While some applications may be straightforward, others require an iterative process to determine potential markets. For example, autonomous vehicle software developed by Oxa found unexpected applications in airport transfer pods. Identifying use cases in niche areas such as quantum or AI requires proactive engagement with potential customers. The university provides support through entrepreneurs in residence, investor days, and pitch sessions to help aspiring entrepreneurs shape their ideas and pitch them to potential backers.
The commercialization of intellectual property developed in university labs is a priority for UK institutions, as they seek to exploit technologies like AI and quantum to drive innovation and clean energy solutions. While US institutions have seen significant success in company creation, British universities are working to increase investment and funding to support the translation of research into successful businesses. Bringing in increased investment and funding remains a continuous battle for universities, even those with strong reputations like Oxford. The push to attract investors and support deep-tech startups is essential to drive innovation and economic growth in the UK’s science and technology sectors.
