University of Cambridge leaders have issued a stark warning that the UK risks falling behind in the race to commercialise world-class research unless it does more to support academic spin-out companies struggling to scale.
Speaking at a London showcase of Cambridge’s most promising spin-outs, university figures and venture capitalists said that while Britain remains a hub of scientific excellence, it lacks the investment firepower and infrastructure needed to turn breakthrough research into category-defining global businesses.
“The world isn’t waiting for UK and European science to commercialise,” said Gerard Grech (pictured), managing director of Founders, a Cambridge initiative to boost entrepreneurial growth. “Founders in Silicon Valley, Shenzhen and Bangalore are already building, and very, very quickly. The question is: can European universities match that pace without losing the depth that makes our research world-class?”
Grech said that many of the best commercial opportunities emerge when university science interacts with bold capital, adding: “This is where real innovation happens.”
Cambridge’s vice-chancellor, Deborah Prentice, highlighted the university’s strong track record in spin-out formation. Last year, Cambridge spin-outs raised more than $2 billion, and the institution now produces more spin-outs per capita than any other UK university.
“Cambridge is by many measures the highest-performing innovation ecosystem in Europe,” she said. “International investors, large companies and world-class scientists are recognising that we’re punching above our weight — but we need to go further.”
However, the ability to grow these ventures into globally competitive firms remains a major hurdle. Data from Dealroom cited during the event showed that while Cambridge has a healthy pipeline of start-ups with up to $10 million in venture capital, the number of firms that go on to raise $100 million or more remains significantly lower than in Silicon Valley.
“That is the problem. It is as simple as that,” said Suranga Chandratillake, general partner at Balderton Capital. “You can build so much of a business with $10 million, $20 million, or $30 million. But you need hundreds of millions to build truly global, category-defining companies. And we just don’t have enough companies raising that kind of money.”
The showcase featured pitches from several early-stage, high-impact ventures looking to address complex medical problems. Prodromic, for example, is developing predictive diagnostics that could detect the early onset of brain diseases like dementia. Gastrobody Therapeutics is working on ingestible, stable antibodies for treating gastrointestinal diseases such as Crohn’s, potentially eliminating the need for injections.
Such innovations demonstrate the commercial potential sitting within UK universities, but investors and academics alike warned that unless Britain finds a way to provide follow-on capital at scale, these businesses may never realise their full potential — or may end up relocating abroad.
The message from Cambridge was clear: if the UK wants to turn scientific leadership into economic leadership, it must urgently improve its ability to fund, grow and retain its most promising ventures.
With international capital accelerating elsewhere, and breakthrough research already happening on British soil, the missing piece is not invention — it’s investment at scale.
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Cambridge warns UK must scale up investment to turn spin-outs into global success stories