The University of Aberdeen is to drastically reduce the equity share it takes in its spinout firms to encourage more business creation.
In line with a recent independent review of spinouts, commissioned by the Treasury, the university could reduce its stake in new businesses to as a low as 5% from the previous 21%.
Future equity arrangements will also take a sector-specific approach that considers the level of university investment in the underpinning research and nature or extent of the intellectual property.
“An independent review commissioned by the UK Treasury looked at the most successful university spinout ecosystems across the world and within the UK, to identify best practice and opportunities to support spin-outs to attract greater investment and grow faster,” said Professor Peter Edwards, the university’s vice-principal for regional engagement.
“The independent review reported criticism from spinout founders that universities have been taking too great a share, with some taking 40% or even 50% equity, well above levels that investors would see as encouraging the level of investment needed to support the company and founders would consider fair. As a result, they have effectively been stifling these businesses’ ability to grow.”
He added: “The University of Aberdeen has an excellent track record and reputation for life sciences spinouts with firms such as Elasmogen, TauRx and NCIMB in our portfolio. We want to replicate this success across other sectors from green energy to digital technology and, in producing a more nuanced approach, we will be able to provide clarity for founders and improved opportunities for investors which we believe will stimulate future growth and development.”
The new policy is just one element within a much broader set of measures being implemented by the University to support new company creation and economic growth.
These range from changes to academic promotion criteria to recognise commercialisation of academic research, to involvement in initiatives like the recent ICURe Discover North East programme in which the University partnered with Innovate UK, Opportunity North East and The Helix Way. The programme saw 10 teams of university entrepreneurs complete an eight-week journey to equip them with invaluable market understanding and customer discovery skills.