For those who measure the success of startup ecosystems by counting unicorns, the Cambridge University cluster is doing particularly well. A report by Sifted, using numbers provided by Dealroom, suggests that out of the 78 $1 billion companies created in Europe last year, the university and its alumni accounted for 12, with another 22 tipped to attain unicorn status in the near future.
But Cambridge would like to do better. This week, Cambridge Enterprise – the body responsible for supporting the commercialisation of university research – announced the launch of a new initiative aimed at boosting the creation and scaleup of technology and science-driven companies.
Headed up by U.K. tech industry veteran, Gerard Grech, Founders at Cambridge University has been positioned as a “flagship program” designed to accelerate the progress of company creators while also helping the university cement its position as a leading center for the commercialisation of research.
“Cambridge is not just about academic excellence,” says Grech. “It is also about excellence in the creation of leading companies.”
And the ability of the U.K. to exploit the potential of research carried out in university labs – not just in Cambridge but around the country as a whole – has never been more important. From biotechnology and life sciences to artificial intelligence, there is no shortage of ground-breaking work being carried out within Britain’s universities. Unless this work is successfully brought to the market, however, the danger is that other countries will secure the leadership positions with all the associated economic gains.
Bringing In Expertise
So, how can Founders At Cambridge University help?
Well, the first thing that has to be said is that Gerard Grech has form when it comes to nurturing technology ecosystems. Until earlier this year, he was CEO of Tech Nation, an organization funded largely by the British government with a brief to fuel the growth of the innovation economy. Over its ten-year lifespan, Tech Nation accelerated around 1,250 companies through 48 growth programs. Controversially, public support was withdrawn in January of this year. Government funding was redirected to Barclays Bank’s Eagle Labs while Tech Nation was acquired by Founders Forum. Having moved on, Grech brings expertise in ecosystem development to his role at Cambridge.
But what does that mean in practice?
It’s a work in progress but unsurprisingly perhaps, accelerator programs will be an important part of the mix, helping founders to spin out and scale at a faster rate than might otherwise be the case. Expert help and mentoring will be on hand. There will also be financial help, with the university offering convertible loan notes. There won’t be direct equity investment in the first instance.
Founder Friendly
Grech stresses that the initiative – in line with broader university policy – is intended to be as founder-friendly as possible. That extends to the way IP rights are assigned.
“The whole point is to make sure the infrastructure is in place – backed by the university – to spin out companies in a programmatic way,” he says.
Benefits Driven
If there is an overarching theme to the direction of the initiative it probably revolves around accelerating ventures with the potential to deliver social and environment benefits. “The program is driven by impact, not by economic maximization,” says Grech.
That’s not to say that future investors shouldn’t expect a return – investability will be an important part of the mix – but the focus will be on helping businesses that can address big issues such as the climate crisis, the environment or the growing demand for healthcare.
But to what extent does Cambridge need another initiative to support founders? As the press release for Founders is not slow to claim, the university produces more founders than any other city in the world (that number comes from Dealroom) and has been a fertile breeding ground for unicorns. ARM was born there, as was Raspberry Pi, Darktrace and many others. Stepping back to look at the bigger picture, data from consultancy, London Economic says the university contributed almost £30 billion in economic impact in 2021/2022, with £23.1 billion of that attributed to research and knowledge exchange activities. In total there were 178 spinouts and 213 startups associated with university.
But if Cambridge has done pretty well so far, Grech stresses that it is essential for universities and their alumni to make the most of their research. “We are entering a new phase in the commercial exploitation of science,” he says.
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