The North East’s five universities have joined forces with mayor Kim McGuinness in a multimillion-pound project that aims to turn academic research into high-growth businesses. The North East Spinout Inspire Fund is being launched with £10 million investment from the North East Mayoral Strategic Authority and £12.5 million from Durham, Newcastle, Northumbria, Sunderland, and Teesside universities.
Supporting early-stage spinouts
The fund aims to support at least 30 early-stage spinout businesses, where risk is higher and funding is often harder to secure from private sector investors alone. The launch has been welcomed by business leaders and the heads of all five universities. It will be officially launched by former Legal and General chief executive Sir Nigel Wilson, who grew up in the North East and went on to lead one of the country’s biggest firms.
Mayor’s vision
North East mayor Kim McGuinness said: “Small businesses are the beating heart of our economy, and through the North East Fund we are backing the innovators and entrepreneurs with more than £100 million to turn brilliant ideas into thriving companies creating thousands of new jobs as we go. Our five universities have joined with us in a bold move to ensure their spinout companies can succeed for our region, and that shows the rest of the country how we do business here in the North East. We’re making deals that recognise the talent on our campuses to launch new enterprises, create jobs and grow the economy.”
University collaboration
Prof Andy Long, vice-chancellor of Northumbria University and chair of Universities for North East England, said: “Durham, Newcastle, Northumbria, Sunderland and Teesside universities are hotbeds of research that transforms lives. This fund will help our researchers go further and faster in converting their ideas into successful businesses, creating jobs and prosperity in our region. We welcome the North East MSA’s significant investment in this Fund and all five members of Universities for North East England are determined to support this agenda. We are 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.”
Investment focus
The Fund will invest in businesses emerging directly from university research, providing funding for high-potential start-ups in areas such as clean technologies, digital innovation, life sciences, and advanced manufacturing. It also aims to strengthen university links to private sector investors through its co-investment approach, building investor confidence, and develop new venture models that encourage longer-term investment partnerships. It is hoped that the funding will help retain high-growth companies in the region, create new jobs and contribute to regional productivity. The fund will be managed by Newcastle-based Northstar Ventures.
Business community support
John McCabe, chief executive at the North East Chamber of Commerce, said: “The North East Spinout Inspire Fund shows that the region’s five universities, local government and businesses are ready to work together to create innovation-led growth, turning cutting-edge research into new business. We believe in the power of place-based approaches and innovation – solutions designed with, for and by the North East – to unlock our area’s full potential, and this is a strong signal that the region is ready to deliver. The fund will drive investment and create real opportunities, achieving maximum impact for our communities and delivering true inclusive economic growth.”
