拢320 million plan to usher innovation and deliver Mansion House Reforms
The Chancellor has announced a 拢320 million plan to drive innovation and unlock the first tranche of investment from his Mansion House Reforms.
- New investment vehicles tailored to the needs of pension schemes to support investment into the UK바카라 사이트檚 most promising high-growth companies.
- Latest step in delivering the Chancellor바카라 사이트檚 Mansion House Reforms unlocking 拢75 billion
- Expected to provide an extra 拢1,000 a year for the average earner that starts saving from 18
The Chancellor has announced a 拢320 million plan to drive innovation and unlock the first tranche of investment from his Mansion House Reforms.
A raft of measures 바카라 사이트� which are expected to provide an extra 拢1,000 for people바카라 사이트檚 pension pots every year 바카라 사이트� will help pension funds invest in high growth, innovative companies to deliver for savers and grow the economy.
The government is supporting new investment vehicles tailored to the needs of pension schemes, allowing investment into the UK바카라 사이트檚 innovative companies.
拢250 million will be committed to two successful bidders under the Long-term Investment for Technology and Science (LIFTS) initiative, subject to contract. This will provide over a billion pounds of investment from pension funds and other sources into UK science and technology companies.
To complement private investment vehicles, a new Growth Fund will be established within the British Business Bank. The Growth Fund will draw on the BBB바카라 사이트檚 strong track record and a permanent capital base of over 拢7 billion to give pension schemes access to opportunities in the UK바카라 사이트檚 most promising businesses. 聽This has been welcomed by 8 pension schemes and fund managers as a potentially valuable addition to the market.
Building on the recent BVCA Venture Capital Investment Compact, the package also includes measures to further strengthen the UK바카라 사이트檚 renowned venture capital industry. A new Venture Capital Fellowship scheme will support the next generation of world-leading investors in our VC funds, similar to the successful US Kauffman Fellowship.聽
The Chancellor, Jeremy Hunt, said:
바카라 사이트淚nnovation is the key to our future success as a nation and its vital that we do all we can to help companies start, scale and grow in the UK.
바카라 사이트淭omorrow바카라 사이트檚 Autumn Statement will be a huge step towards delivering our Mansion House Reforms and unleashing the full potential of our pensions industry.
It comes as the Chancellor is convening representatives from several universities and investors at University College London (UCL) East where they will endorse a new set of 바카라 사이트榖est-practice policies바카라 사이트� that are recommended by the independent review of spinouts.
The Chancellor is to inject 拢20 million to foster more 바카라 사이트榮pin-out바카라 사이트� companies, firms created using research done in universities. He is also providing at least 拢50m additional funding for the British Business Bank바카라 사이트檚 successful 바카라 사이트楩uture Fund: Breakthrough바카라 사이트� programme 바카라 사이트� that will provide direct investment to support these innovative companies to scale up.
Spin-out companies raised 拢5.3 billion in investment in 2021-22 alone. Today바카라 사이트檚 announcements are designed to increase investment for the future and help ensure researchers in our world-leading universities have the tools they need to start, scale, and grow innovative new businesses in the UK.
The independent review 바카라 사이트� led by Irene Tracey, Vice-Chancellor of Oxford University and Andrew Williamson, Managing Partner of Cambridge Innovation Capital 바카라 사이트� recommends innovation-friendly policies that universities and investors should adopt to make the UK the best place in the world to start a spin-out company.
In the past, many spin-outs deals were created from scratch, which is both inefficient and sometimes fails to learn the lessons from previous success stories. Today바카라 사이트檚 recommendations aim to speed up the process and build on TenU바카라 사이트檚 University Spin-out Investment Terms (USIT) Guide by recommending 10-25% university equity for life sciences spinouts, and 10% or less for less IP-intensive sectors, common in software.
The Chancellor has accepted all the recommendations and will set out his full response as part of the Autumn Statement tomorrow.
This move will help deliver the Prime Minister바카라 사이트檚 pledge to grow the economy by supporting our world-leading university research institutions, which generate around 拢10 billion a year for the economy.
Further information
Supportive statements for the Independent Review of Spin-outs
- Chancellor, Jeremy Hunt, said:
바카라 사이트淚nnovative, globally competitive businesses like Oxford Nanopore are making a huge contribution to our economy.
바카라 사이트淚t바카라 사이트檚 critical that we harness this potential and give universities the tools they need to translate cutting edge research into exciting UK businesses that start and grow in the UK.바카라 사이트�
- Science and Technology Secretary, Michelle Donelan, said:
바카라 사이트淭urning new ideas and innovations into blossoming businesses is the bedrock of a vibrant economy and our 拢20m investment will drive more successful UK spinout companies like Oxford Nanopore and Darktrace, ensuring world-class research translates into world-leading industries.
바카라 사이트淎t the same time, we need clear rules on the stakes held by universities which offer world class facilities and expertise to get those companies off the ground, so we can back future generations of innovators, in turn creating more local jobs and growing our economy.바카라 사이트�
- Co-leads for the independent review Professor Irene Tracey CBE, FRS, FMedSci, Vice-Chancellor of the University of Oxford, and Dr Andrew Williamson, Chair of the Venture Capital Committee at the British Private Equity & Venture Capital Association (BVCA) and Managing Partner of Cambridge Innovation Capital, said:
바카라 사이트淭he UK바카라 사이트檚 world-class university sector is a crucial driver of economic growth and innovation. Over the past eight months, we have engaged extensively with the major stakeholders in the UK바카라 사이트檚 university spin-out ecosystem. Today바카라 사이트檚 publication of our review and its recommendations are the culmination of this extensive work. We propose a set of spin-out terms and practices designed to foster a more collaborative and sharing environment among academia, entrepreneurship, and investment.
바카라 사이트淥ur hope is that this will increase the number of spin-outs, reduce the time to negotiate licenses, and increase the spin-out바카라 사이트檚 success rate. It was a privilege to contribute to this report and we are extremely grateful to our colleagues for their willingness to engage in the review, and especially the advisory board. Across diverse sectors, including AI, quantum computing, advanced therapeutics, diagnostics, and climate tech, university spin-outs across the UK are rapidly generating economic growth, societal impact, and fulfilling career opportunities for the next generation.바카라 사이트�
- Responding to the recommendations set out in the Independent Review of Spin-outs Anne Lane, CEO of UCL Business (UCLB), said:
바카라 사이트淔or 30 years, UCLB has created successful spinout businesses from UCL바카라 사이트檚 ground-breaking research, which have raised 拢2.75 billion investment in the last 5 years alone.聽 As well as creating jobs and economic impact, these spinouts scale up solutions to complex societal challenges, from reducing carbon emissions to therapies for rare hereditary diseases.
바카라 사이트淭he recommendations published in this review will help universities harmonise the creation of spinouts. We look forward to working even closer with fellow universities, government, and the investment community to ensure a healthy and sustained flow of investment back into academic research whilst supporting the emerging world-changing businesses of the next 30 years.바카라 사이트澛�
- Professor Sir Anton Muscatelli, Principal and Vice-Chancellor of the University of Glasgow, said:
바카라 사이트淚 very much welcome the findings and recommendations of this Review and believe wholeheartedly in the untapped potential for innovation and entrepreneurship within our universities across the UK. Our institutions are at the forefront of the groundbreaking R&D which can drive productivity and economic growth across the country, and to be globally competitive we must ensure we are creating a framework which is investor-friendly, founder-friendly, nurtures university spinouts and unleashes this untapped potential.
바카라 사이트淯niversities like mine are developing the technologies needed to fuel the UK바카라 사이트檚 economy and tackle the greatest challenges facing the world, so it is very welcome to see the UK 바카라 사이트 recognise the integral role our institutions can play in facilitating the creation of new ventures to bring new ideas and breakthrough innovations to market. As a sector we look forward to working together with the 바카라 사이트 in the months ahead to deliver the ambitions set out in the Review.바카라 사이트�
- Michael Moore, Chief Executive, British Private Equity and Venture Capital Association said:
바카라 사이트淭he independent university spin-out review is a hugely welcome statement of intent.聽Private capital has an important role to play by bringing both investment and expertise together to transform the world class research in UK universities into world class businesses. The recommendations in this review can help to generate ways to get more capital working together with the best ideas to achieve that.바카라 사이트�
- Julia Hawkins, Partner at LocalGlobe said:
바카라 사이트淭urning the UK바카라 사이트檚 world-leading science and innovation into viable global businesses takes so much more than just IP and investment. We applaud the recognition in this review that founders benefit from the support of experienced investors, who are also seasoned company builders. At Phoenix Court we co-founded the Newton Fellows program to help train the next generation of investors and entrepreneurs, and we especially welcome spinout founders and investors. We are also working with interns from PhD/Postdoc programs who are looking to gain experience of the investment and entrepreneurship worlds, and we want to do more in this area. And we have long argued that founders should not give up too much equity in their businesses and are delighted to have joined the TenU working group to recommend appropriate terms to help spinouts achieve market competitive terms that both incentivise and reward.바카라 사이트�
- Steve Bates OBE, CEO of the UK BioIndustry Association (BIA), said:
바카라 사이트淪pin-outs are the lifeblood of life science innovation ecosystem. This report shows that the UK university spin-out process is getting simpler, faster, and more repeatable. This is creating a virtuous circle of increased deal flow, more life science companies and investor confidence in the UK.
바카라 사이트淧eople moving easily both ways between academia and industry is key to successful research translation. This report demonstrates practically just how highly-connected the UK바카라 사이트檚 unique life science innovation ecosystem is. 聽It바카라 사이트檚 because of this collaboration that I바카라 사이트檓 confident the report바카라 사이트檚 recommendations will be delivered.바카라 사이트澛�
- Tim Bradshaw, CEO of the Russell Group, said:
바카라 사이트淲e바카라 사이트檙e pleased this review highlights the enormous value spin-outs have added to the UK economy and demonstrates the vital role universities play in commercialising research and enabling new enterprises across a range of industries to flourish.
바카라 사이트淭hese businesses simply would not exist without the resource, skills, and investment of our world-leading universities as well as support from the investor community and 바카라 사이트.
바카라 사이트淚n turn, university spin outs have created thousands of high value jobs right across the country, and we are eager to do even more.聽
바카라 사이트淲e look forward to working closely with the 바카라 사이트 and investors to build on the momentum from this review to ensure we can not only sustain but hopefully grow the already thriving UK spin-out eco-system.바카라 사이트�
- Vivienne Stern, CEO of Universities UK, said:
바카라 사이트淲e welcome this review바카라 사이트檚 recognition of the positive impact and important role that university spin outs have on driving growth and supporting the national and local economy. We support the ambitions of the review for universities, investors and 바카라 사이트 to come together and work collaboratively to maximise opportunities for university spinout activity. University spin outs create thousands of jobs across the UK and will play an important role in driving the economic growth and local regeneration that the country needs.바카라 사이트�
British Business Bank
- The British Business Bank (BBB) has engaged widely with the market to explore the case for government to play a greater role in establishing investment vehicles to allow pension schemes to invest quickly and effectively in UK unlisted growth companies, building on the skills and expertise of the BBB바카라 사이트檚 commercial arm.
- The organisations, listed below, have confirmed that they are supportive of the government바카라 사이트檚 ambitions to encourage additional institutional investment into UK venture and growth assets, and that a government established vehicle run by the BBB could be a valuable addition to the market, alongside other vehicles that already exist or are in development.
- They have also confirmed their availability for continued engagement with the BBB to help design this vehicle to meet schemes바카라 사이트� needs, alongside the wider work of government and the market to establish suitable vehicles.
- Aviva, L&G, M&G, Smart Pension, Aegon, Phoenix, AON and USS