SETsquared Partnership Universities and QantX Launch £300m Investment Vehicle for Science and Tech Startups
The SETsquared Partnership universities, including the University of Southampton, and QantX have announced plans for a new £300m spin-out focused investment vehicle to drive the creation and growth of science and technology companies addressing global challenges.
The initiative was announced by Sir Richard Olver, Chair of QantX, at Bristol City Hall on 11 October at the Regional Investment and Health & Life Sciences Summit, which Science Minister Lord Patrick Vallance and MP Darren Jones also attended.
Combined, the SETsquared Partnership of six universities – Southampton, Bath, Bristol, Cardiff, Exeter and Surrey – has a research portfolio of more than £600m and has produced over 230 spin-out companies through collaboration across vibrant regional innovation ecosystems.
Despite this success, the potential impact of research and development to power regional growth and productivity is being held back due to significant imbalances in equity funding across the UK. Startups in the region raise, on average, five times less at early stages than in the Golden Triangle.
QantX is on a mission to bring modern economic success to the region by increasing the number of spin-outs, protecting intellectual property, and creating long-term impact. They have a track record of backing the most ambitious science and technology founders – including award-winning teams at Senisca, Ensilitech, iFAST Diagnostics, and Neuronostics – and developing connections across University innovation ecosystems.
SETsquared is widely recognised as one of the UK’s most successful innovation partnerships and was recently ranked by the Financial Times and Sifted as one of the top three start-up hubs in Europe. The partnership brings the pipeline and track record from working with over 400 ventures per year in critical technologies such as AI, engineering, biology, semiconductors and quantum, with members securing over £5bn in investment and creating over 15,000 jobs since 2002.
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.”
Professor Mark Spearing, Vice-President (Research and Enterprise) at the University of Southampton , said: “I am excited by the potential for the new investment vehicle to accelerate the progress of science and technology start-up companies across the SETsquared region, and particularly those originating from the entrepreneurial ecosystem associated with the University of Southampton.
“Having worked in the USA, I am very aware that the availability of investment capital in the UK is a key constraint on the progress of promising early stage companies.”
Richard Haycock, Co-Founder & CEO, QantX, added : “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.”