New £22.5 million fund launched to support North East university spinouts

A new £22.5 million investment fund has launched on Thursday 11th June to help turn research from five universities in the North East into growing businesses.

The North East Spinout Inspire Fund will support companies created to commercialise research and innovation from Durham, Newcastle, Northumbria, Sunderland, and Teesside universities. Backed by a £10 million investment by the North East Mayoral Strategic Authority and a total of £12.5 million from the five universities, the fund is aimed at helping early stage spinout companies access investments, scale up, and tackle market failures that have mitigated innovation in the region.

It will invest in technologies developed by academic staff across the region, including life sciences, energy and net zero, artificial intelligence, and digital innovation.

North East mayor Kim McGuinness said: “Small businesses are the beating heart of our economy… we’re making deals that recognise the talent on our campuses to launch new enterprises, create jobs and grow the economy.” 

The fund will be managed by Northstar Ventures, which has previously invested in more than 25 university spinouts. It will also counterpart existing programmes like Northern Accelerator, which includes the five North East universities. 

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Chris Day, vice-chancellor of Newcastle University, said: “By investing in our researchers and innovators, we are nurturing the pipeline of businesses, securing future employment opportunities and ensuring that the benefits of discovery are felt here in our region.”  

Andy Long, vice-chancellor of Northumbria University, said: “This fund will help our researchers go further and faster in converting their ideas into successful businesses, creating jobs and prosperity in our region,” and that he is “confident this investment will attract high-quality researchers and investors to the region, with the investment leading to clear benefits for the people of our region, the local economy, and the national economy.”  

In its first five years, the fund aims to support at least 30 spinout firms. Through shared risk and cooperative funding, it hopes to create new jobs and contribute to regional productivity.

Featured image via press release.