Oxford, UK – 17 November 2023 – Oxford Science Enterprises (OSE) today welcomes the findings of the Treasury’s Independent Review of University Spinouts, which comes at a pivotal time for the UK’s ambition to become a global science superpower. By supporting the growth and success of spinout companies, the UK has the potential to drive societal impact, transform lives globally and fuel economic growth.
At OSE, we have seen first-hand the key ingredients required to build a thriving spinout ecosystem and are encouraged by the review’s recognition of the need for collaboration between government, universities and investors.
Innovation-friendly university policies:
- We welcome the review’s call for universities to adopt policies that encourage innovation and recognise the vital role of Technology Transfer Offices (TTOs) in creating successful spinouts.
- At Oxford, OSE and Oxford University Innovation (OUI) have agreed standard terms for spinouts – including term sheets, investment documents and intellectual property licences – that improve efficiency and accelerate timelines. When OUI works with other investors, these terms are available off-the-shelf.
- OSE also contributed to the development of the University Spinout Investment Terms (USIT) Guide, a collaboration between investors, universities and TTOs. Referenced in the review, the guide provides best practice advice for creating spinouts.
Role of university-affiliated funds:
- The review rightly highlights the importance of dedicated university funds in driving spinout creation, supporting local innovation ecosystems and attracting investment.
- Since 2015, OSE has raised £853 million of capital solely dedicated to Oxford spinouts. During this period, the average number of new spinouts per year has increased threefold, and annual investment in Oxford spinouts has risen tenfold.
- OSE has also attracted over 200 new investors into the Oxford ecosystem and added more than 55,000 sq. ft of state-of-the-art lab and start-up space.
- Both Oxford University and OSE welcome new investors and capital at all stages. While OSE is the University’s preferred IP partner, founders have full freedom to choose how their IP is commercialised and to select their investment partners.
- Beyond capital, OSE supports founders with strategy, team building, governance, facilities and access to expert networks – from first cheque through to exit.
Government reforms to support scale-up capital:
- We welcome government efforts to bring new capital into the UK’s science and technology sectors. OSE recently signed the Treasury-backed BVCA Investment Compact, which encourages collaboration between venture managers and pension investors to unlock greater long-term funding.
- OSE also supports initiatives such as the R&D tax credit scheme and investment schemes that attract capital to early-stage growth companies.
Collaboration across ecosystems
The review also acknowledges the need for knowledge-sharing across the UK’s spinout ecosystems. OSE is committed to supporting this, for example through its partnership with the University of Birmingham’s PHTA accelerator announced earlier this year.
OSE looks forward to working with government, Oxford University, academic founders and the wider investment community to build on the review’s recommendations and put the right support in place to create the successful companies of the future.