Small businesses founded at Scottish universities accounted for the highest number of equity investment deals to UK spin-outs last year, according to the British Business Bank.
Of the 211 equity deals involving spin-outs across the UK during 2021, 44 (21% of the total) came from Scottish academic institutions – the highest figure of any region or devolved nation.
The south east of England was second with 39 spinouts receiving funding, while the east of England and London had 35 and 32 respectively.
It was the second year in a row Scotland was top for equity investment deals in university spinouts after recording 64 in 2020 – ahead of the south east’s and east of England’s 41 each.
Scottish deals announced during the first half of the year include an £8m investment in Elasmogen, a biotechnology business spun out from the University of Aberdeen, and a £1.2m investment in WellFish Diagnostics, an aquaculture spinout from the University of the West of Scotland.
Barry McCulloch, senior manager for Scotland at the British Business Bank, said: “Scotland is home to a number of world-class research institutions that are developing ground-breaking products and processes, particularly in sectors such as life sciences and technology.
“Investing in research-led businesses is an essential part of fostering an innovation economy and the British Business Bank is committed to driving sustainable growth and prosperity across the UK, including ongoing funding for R&D-intensive businesses such as spinouts from Scottish universities.”
Scotland produces large volumes of spinout companies due to its world-leading research capability. However, these companies raise less funding on average than their counterparts based in the ‘Golden Triangle’ of London, Oxford and Cambridge, at £10m compared to £17m on average. Although, this is higher than any other area beyond the Golden Triangle.
Ottoline Leyser, chief executive of UK Research and Innovation, added: “To drive an innovation-led UK economy, we must be able to form and scale R&D intensive innovative businesses.
“In understanding how businesses access the support we each deliver and making this process smoother and better coordinated, we will support emerging businesses better and in turn play a key role in driving an R&D intensive economy and delivering better outcomes right across the UK.”
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
