UCL recognised for spinout best practice by Research England

Spinouts are companies which are founded to commercialise the research, ideas and innovations coming from university academics.

The best practice recommendations were set out in the Independent Spinout Review which was published in November 2023. This week Research England published a list of the universities which have publicly adopted the recommendations so far.

The spinout review was based on best practice guidelines developed in consultation with the UK’s leading university technology transfer offices, including UCL’s commercialisation company UCL Business (UCLB).

The review made a number of recommendations to improve the formation of university spinout businesses. Recommendations include academic founders retaining as much equity in their business as possible, and agreeing set-up deals faster so spinouts can get on with growing and getting ideas to market quicker.

UCLB is already a leader in adopting these principles. They have established a model called ‘Portico Ventures’ which provides pre-formatted deals to enable founders to retain up to 95% equity in their business, and reach those deals quickly. This is particularly important in rapidly evolving areas of innovation such as artificial intelligence.

Driving innovation and improving society

The review recognised the vital role universities play in driving innovation, improving society and transforming lives through the commercialisation of intellectual property developed from university-based research.

Over the last five years, 51 spinouts were started at UCL through UCLB. Collectively, these businesses have raised over £2.9 billion in investment and currently employ over 2,200 people, making UCL third in the UK for attracting external investment.

Dr Anne Lane, CEO of UCLB, said: "Over the last year we've seen a major increase in the number of UCL academics approaching us to discuss the commercialisation of their research. That’s a hugely positive sign and I believe that indicates an increase in awareness and entrepreneurial ambition among academics, and a sense of confidence in the support and professionalism that UCLB offers throughout the commercialisation journey."

Dr Kathryn Walsh, Executive Director, UCL Innovation & Enterprise, said: "At UCL our technology transfer company UCLB is already highly successful at commercialising UCL’s world leading research to drive innovation, jobs and growth. We’re committed to adopting these recommendations. We wholeheartedly believe that by working even closer with fellow universities, governments, and the investment community, more cutting-edge research will be turned into exciting UK businesses that have the ability to come up with the complex solutions needed to tackle some of society’s toughest challenges."

Examples of UCL spinouts

Autolus Therapeutics uses technology that programmes immune cells to target and destroy cancer cells, offering new hope for people with difficult-to-treat cancers. The company has raised $921.6 million and employs 450 people. It's UK-based manufacturing and infrastructure includes a new 70,000 square foot production facility in Stevenage.

Endomag uses magnetic-based sensing to replace the need for radioactivity to determine whether breast cancer has spread into the lymphatic system. Endomag is used by over 1,000 hospitals in 45 countries and over 500,000 women have benefited from more precise diagnosis and less invasive breast cancer treatment.

Bramble Energy is at the forefront of the hydrogen revolution. Bramble Energy’s innovative hydrogen fuel cells could help drive down carbon emissions.

Carbon Re, which originated from the UCL Energy Institute, uses AI technology to help heavy industry cut its emissions by up 20%, and recently secured a £1 million investment.

Satalia uses artificial intelligence to solve hard efficiency problems, helping the likes of Tesco and PWC.

Cogstack uses AI to interpret narrative patient records and assist clinicians with prognoses.

Links

Find out more about:

• Research England’s list of spinout best practice universities
• UCL Business
• UCL Innovation & Enterprise