British Patient Capital Response to Nations and Regions Tracker 2023

This report highlights the potential for more parts of the UK to become leading innovation hubs with the right investment. Academic spinouts in 33 clusters across the UK represented 23% of technology and IP-related deals since 2011, with a significant share of funding going into highly innovative sectors such as advanced materials, nanotechnology and life sciences. Regions outside of the golden triangle of London, Oxford and Cambridge are also seeing stronger academic spinout activity, and investors are starting to capitalise on these new opportunities. Investment is essential if these companies are to convert promising research into commercially viable products.

While early-stage funding is critical for proof of concept, patient capital is vital for the scale-up of spinout businesses over the long-term. Academic spinouts received 12% of total equity investment in 2022, representing a value of £2 billion. At British Patient Capital we are excited about the opportunity that spinouts offer as demonstrated by our recent £30 million investment into Northern Gritstone, an investment company focused on spinouts and R&D-intensive businesses across the North of England. 69% of our Future Fund: Breakthrough programme of direct investments are also in spinouts, underscoring the importance of British Patient Capital as a force for the continued development of the innovation ecosystem.

Catherine Lewis La Torre CEO, British Patient Capital