University spinouts have seen a first drop in investment for more than a decade, according to a new report.
Parkwalk, the UK’s largest spinout investor, commissioned a report showing the number of funding deals rising to a record 414 last year, but the value fell by £400 million to £2.3 billion and has tumbled to £743 million in the first half of 2023.
“Growing political support for unlocking the full commercial potential of the UK’s science base gives cause for optimism but the job is not yet done,” said Moray Wright, Parkwalk’s chief executive.
“We want the government to stop tinkering with things, such as changing the rules on R&D tax credits and provide stability for funds to plan ahead for multiyear investments,” he added.
“More must be done to encourage UK investors to back spinouts, such as through the Enterprise Investment Scheme, to ensure more founders can access the funds needed to grow in the UK.”
Parkwalk is a subsidiary of IP Group.