PraxisAuril is delighted to share the release of a new technical report from the University Commercialisation and Innovation Policy Evidence Unit (UCI) headed up by Tomas Coates Ulrichsen and based at the University of Cambridge. The report marks a significant step forward in our shared understanding of current practice in taking equity in university spinouts in the UK. Thank you to all the PraxisAuril members who took the time to speak to the UCI team about your spinout policies, typical practice and experience with the wide variety of stakeholders involved.
Creating university spinouts is a complex and lengthy process, involving many internal and external stakeholders. No two universities are the same, and no two spinouts are the same. We sometimes shy away from saying ‘it’s complicated’ but when it comes to spinouts it is worth setting out that complexity rather than hiding behind anecdotes and assumptions, often linked to extreme cases. Instead, this report seeks to understand typical practice and approaches along with outcomes.
The report authors note that they aim to “provide a robust evidence baseline that captures important complexities of the spinout process and UK university approaches to drive more informed discussions on the topic around how we can build on our strengths, overcome any challenges, and improve outcomes for the overall benefit to the economy and society.” The link between university equity stakes and the ability of spinouts to raise finance and grow will be explored in a later report.
One of the striking findings from the report is that universities review their spinout policies within 5-year timeframes, often actively involving stakeholders. This is a process of learning and improvement that goes to the heart of PraxisAuril’s mission to promote good practice in KE. Another key finding is the level of ongoing support that universities provide to their spinouts including through access to facilities and equipment and finance, both crucial to emerging companies and the value of which should not be underestimated. Tamsin Mann, interim-MD of PraxisAuril said:
“I’m delighted that PraxisAuril members have had the opportunity to work with the UCI team on this report. All too often we find ourselves on the backfoot, reacting to anecdote or hearsay when it comes to spinout creation and particularly the issue of equity share. This report is incredibly valuable because it sets out the evidence about typical practice across the sector in a rounded and objective way.”
The report can be downloaded from the UCI website here https://www.ifm.eng.cam.ac.uk/research/uci-policy-unit/uci-news/uci-report-on-university-approaches-to-spinout-equity/ .