Northern Grit: University Ventures

Alright, folks, picture this: a map of UK venture capital, all lit up like a Christmas tree around London, Oxford, and Cambridge. The “Golden Triangle,” right? But hold up, something’s stirring up north. It’s like discovering a secret tunnel under a shopping mall leading to… untapped innovation! I’m talking about a new wave of investors setting their sights on the science and tech gems bubbling up from Northern England’s universities. Think cutting-edge research, groundbreaking startups, and a whole lot of potential just waiting to be unleashed. The big question? Why has the North been overlooked, and what’s changed to make it a hotbed of investment activity now? Armed with my magnifying glass, let’s get to the bottom of this, shall we?

Bridging the “Valley of Death”: Northern Gritstone’s Bold Mission

So here’s the deal – plenty of brilliant ideas get cooked up in university labs, but turning those ideas into real, thriving businesses? That’s a whole different ballgame. It’s what they call the “valley of death,” seriously a killer for early-stage companies. Northern Gritstone waltzes onto the stage, aiming to be more than just a financial backer; it is building scaffolding to ensure these ideas actually make it across.

Founded in 2021 by a consortium of the Universities of Leeds, Manchester, and Sheffield, Northern Gritstone recognized a serious funding gap. Initially aiming for a £500 million fund, they hit a final close of £312 million in November 2023. But here’s the juicy part: this wasn’t just your typical VC cash from London. We’re seeing local and regional authority pension funds, plus serious backing from British Patient Capital and Aviva. Talk about a vote of confidence in the North’s potential! This isn’t just about investment; it’s about regional economic revival, baby! Their total capital racks up to £362 million, showing investors are seriously backing this play.

And they’re not messing around with their focus. We’re talking life sciences, deep tech, and health tech – the kind of stuff that could genuinely change the world. They’re targeting companies from pre-seed all the way to Series B and beyond. And the proof is in the pudding. To date, they’ve already supported 29 companies, spanning everything from advanced materials to robotics, and generated almost £100 million in further investment. That’s a serious impact!

Collaboration is Key: Partnering for Maximum Impact

But here’s where things get really interesting, folks, like finding a secret map in an old book. Northern Gritstone isn’t going it alone. They are building a network and working with other firms to broaden their capabilities in finding and nurturing the UK’s next generation of innovation leaders.

What really caught my eye is their partnership with Parkwalk Advisors through the Northern Universities Venture Fund. Parkwalk knows their stuff when it comes to university spin-outs and has a knack for tapping into the Enterprise Investment Scheme (EIS). See, the EIS gives investors tax breaks for backing risky ventures, which of course is a sweet deal and draws more capital to the Northern region.

But this isn’t just a marriage of money; it’s a strategic alliance. Northern Gritstone knows the Northern university landscape like the back of their hand, and Parkwalk knows how to raise the big bucks. Together, they’re a force to be reckoned with. Add to that Northern Gritstone’s NG Studios venture building accelerator, with £15 million in new funding, and you’ve got a comprehensive ecosystem for nurturing startups.

Northern Gritstone: Beyond Capital, Building Ecosystems

Now, what if I told you that this whole thing isn’t just about making money? Crazy, right? But it’s true! Northern Gritstone is actively working to reshape the whole innovation scene in the North, seriously aligning with the government’s “levelling up” agenda. By channeling investment into the North, they’re aiming to spark economic growth, create high-skilled jobs, and transform the region into a global science and tech hub.

And get this: their success is inspiring others! University-affiliated venture funds are popping up all over the UK, with like 92% of Russell Group universities now backing spinout activity. Recent investments in companies like adsilico and Sileray just prove their commitment to backing serious cutting-edge tech.

As if that wasn’t enough, Northern Gritstone is considering a general partner-limited partner structure, potentially adding another £180 million to their fund. Their goal to become the second-largest university spinout fund in England, rivaling the Oxford Sciences Innovation fund, and potentially creating numerous “unicorn” companies (valued at over $1 billion), says a lot about their ambitions.

So, after digging through all the data I can say that the situation boils down to this: world-class innovation is everywhere and by placing a focused eye on the Northern UK universities, world-class technologies, scientists and engineers are now being unleashed.