Call to adopt US model to create more UK university spinouts

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The problem, says Rich Ferrie, director of operations at the University of Manchester’s intellectual property office, is that investors in UK spinouts tend to be risk-averse, which leads to a lack of funding. “There is a high degree of risk that the technology might fall over,” he says. “And if the technology or product does work and goes to market, the early-stage investors are the guys that get diluted.” As a result, he adds, UK investment comes in small tranches and is milestone-driven while in the US it seems “they are much more likely to put a larger investment in at an earlier stage”.