A £300m investment vehicle to help university spinout companies has been launched.
SETsquared is a partnership between the universities of Bath, Bristol, Cardiff, Exeter, Southampton, and Surrey and regional investment firm QantX.
The initiative was announced by Sir Richard Olver, chair of QantX, at Bristol City Hall, an event which Science Minister Lord Patrick Vallance and MP Darren Jones also attended.
The new vehicle aims to open up significant co-investment opportunities, de-risk early-stage deep tech propositions for the VC and Angel investment community, and increase the overall amount of capital available.
Science Minister Lord Patrick Vallance said: “The UK is home to brilliant innovators, and this investment vehicle that brings together six Universities with a private sector investment firm, QantX, will help turn great ideas into thriving companies that create high-skilled jobs and exciting new products.
“As we prepare for next week’s UK-hosted International Investment Summit, the Government is clear that the UK is open for business. Partnerships like this, between investors and innovators, are vital if we are to grow the economy, boost opportunities and ultimately improve lives.”
Richard Haycock, co-founder & CEO, QantX, said: “While the UK ranks fourth globally in cutting-edge research and innovation, we’ve often struggled to commercialise these breakthroughs. Our partnership with the SETsquared Universities aims to change this in the South and South West. We’re witnessing a surge in university spin-outs led by brilliant founder entrepreneurs.
“By connecting these visionaries with risk capital and expertise in transformative fields like life sciences, sustainability, and deep tech, we’re cultivating a thriving innovation ecosystem. This collaboration will accelerate economic growth, create high-skilled jobs, and deliver returns for our investors. We’re not just funding companies; we’re empowering local entrepreneurs to transform our region into a powerhouse of innovation, ensuring the fruits of our world-leading research flourish right here at home.”
Marty Reid, executive director, SETsquared, said: “The potential scale and quality of science and technology companies emerging from across the SETsquared University clusters is a match for any ecosystem. Creating this new investment vehicle could be a vital step forward in addressing funding gaps we see today, and through a deep connection with our support ecosystem, could inspire a new generation of talent who will get technologies out of the lab and shape the industries of tomorrow.
“We are delighted to formalise our collaboration with QantX, who bring a wealth of complementary experience from global industry and finance and a shared ambition to build a truly world-leading regional ecosystem and an economy with innovation at its heart. Collaboration is key to what we are building, and we would be delighted to engage with the broader investor community and any stakeholders interested in playing a part as we move forward.”
