Life sciences spin-outs from the University of Cambridge attract the highest amount of equity per funding round on average and enjoy greater long-term business success than those elsewhere according to a new study.
It shows Cambridge spinouts have secured 133 per cent more equity funding compared to comparable peer institutions. The study from accountancy firm Price Bailey looked at data from 584 university spinouts in life sciences, medtech, artificial intelligence, and genomics sectors that received equity funding between 2012 and 2022. The study also showed that university spin outs were significantly likely to achieve a ‘good’ exit, offering a beneficial entry route for entrepreneurs.
It highlights an 'Oxbridge premium' with life science spinouts from the universities of Oxford and Cambridge securing £3.2m more capital. Oxford University spinouts receive the largest share of equity investment in the UK and lead in spinout creation. Despite a 79 per cent decline in UK spinouts since 2020, the overall number has doubled over the last decade.
Chand Chudasama, partner at Price Bailey, said: “Our findings highlight an impressive £12.65m economic impact for every £1m of publicly funded research income that the University of Cambridge generates. This reflects the “multiplier effect” of university based research investment on economic growth, job creation and innovation.”