University of Bristol Joins Forces in £300 Million Investment Vehicle to Boost Innovation and Growth

The University of Bristol is one of six universities in the SETsquared partnership teaming up with leading regional investment firm QantX to launch a new £300m spin-out focused investment vehicle.

The new investment vehicle aims to significantly boost the creation and growth of science and technology companies in the South and West ready to address 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.

This new investment vehicle will drive a much needed step change in early-stage patient capital, expertise and support available to University spin-outs and start-up companies in the region that are working in areas of true global impact – such as sustainability, clean energy and transformative healthcare.

Combined, the SETsquared Partnership of six universities – Bath, Bristol, Cardiff, Exeter, Southampton and Surrey – has a research portfolio of over £600m and has produced over 230 spin-out companies through collaboration across vibrant regional innovation ecosystems.

Despite this success, the potential impact of R&D 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.

As demonstrated by successful models elsewhere in the UK and internationally, this new vehicle will 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.

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.

The University of Bristol has a rich history of research commercialisation and has been spinning out companies since the 1990s, with a steadily increasing output. Typically, between four and six new spin-out companies are created each year.

The University already has a strong portfolio of spin-out companies thriving in fields such as quantum computing, artificial intelligence, clean energy and health technology, and the new investment vehicle will help cement Bristol’s reputation as a thriving hub for world-leading tech companies.

The University’s new Temple Quarter Enterprise Campus, due to open in 2026, sits at the heart of an emerging innovation district and will catalyse opportunities for knowledge exchange: advancing research across digital, business and social innovation.

Meanwhile, the University is also home to the multi-award winning Centre for Innovation and Entrepreneurship and the University of Bristol Business School. Bristol graduates are some of the most sought after by top employers.

Professor Guy Poppy, University of Bristol Pro Vice-Chancellor for Research and Innovation, said: “Bristol and the South West already receive international recognition for the strength of our entrepreneurship in fields such as quantum tech, advanced materials, future telecommunications and engineering biology.

“This unique opportunity allows us to build on the proven track record of the SETsquared Partnership as part of our wider innovation ecosystem.

“By helping us nurture early-stage spin-out companies, it will bring ground-breaking research discoveries to market faster, boosting the economic growth of our region and letting us directly tackle questions of global significance.”

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: “The UK is ranked fourth globally for tech, digital, and science-based innovation, the sectors that drive a thriving modern economy. Yet historically, it has failed to turn its world-leading research into commercial success.

“When it does, the benefit is often lost overseas. To accelerate economic growth and create high-skilled jobs, the UK needs to channel risk capital and business expertise into these high-growth, innovative sectors.

“This new investment company will address these challenges and ensure that vital innovations come to market more quickly, where they can create the most social, environmental, and economic impact.”

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.

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.”