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23 May 2025

University spinouts are struggling, and here's why.

University spinouts are struggling to get funding and infrastructure to grow. Read our analysis.

The UK government has been clear: Universities are crucial for scientific innovation. Academics are expected to commercialise their research through spinouts, turning ideas into companies that solve real-world problems. But while the expectation is high, the support is lacking.


Spinouts need money to get off the ground. The Government’s £40m proof-of-concept fund was supposed to help, but demand has been overwhelming. According to an article this week by City AM, the first £9m round had 2,750 applicants—far more than the funding could handle. That means thousands of potential startups may never make it past the first hurdle.


But even when spinouts do secure funding, there’s another issue: where do they go next? 


Kate Carlisle from Royal Society of Chemistry presented the spinouts ideal journey at London Lab Live
Kate Carlisle from Royal Society of Chemistry presented the spinouts ideal journey at London Lab Live

Early-stage science companies need space, flexible labs and business support to grow into something real. They also need for these resources and facilities to be well integrated into their development journey, as “upping sticks” to find affordable lab space elsewhere, when it’s not provided close to their university ecosystem,  can sever precious links and lose specialised expertise that has taken time and effort to build,


When spinouts exceed incubators capacity and don't find suitable lab space in their ecosystem, they are forced to move elsewhere, which breaks their flow.
When spinouts exceed incubators capacity and don't find suitable lab space in their ecosystem, they are forced to move elsewhere, which breaks their flow.

That’s where Sciopolis' scaling hubs approach and campaigns like #MoreChemLabs spearheaded by the Royal Society of Chemistry come in. Having access to affordable, well-equipped labs and facilities near universities, with supportive ecosystems and room to grow can make the difference between success and failure for university spinouts.


Kate Carlisle from the Royal Society of Chemistry made the argument well in her presentation at the London Lab Live event last week (see slide below) and we couldn’t agree more: think ecosystem, not just infrastructure.


If the UK wants to stay ahead in scientific innovation and be a catalyst for companies that will change the world, it must do more than just encourage spinouts—it must support them properly, with funding, space, and partnerships.


Spinouts need more affordable, ready-to-occupy, university-adjacent labs they can move into after leaving incubators. This allows them to stay rooted in the ecosystems that nurtured them, avoiding disruptive and costly relocations.

Otherwise, we risk losing out on world-changing discoveries before they even get started.




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