TAKING OFF
Grant Wheeler, Head of Company Formation and Incubation at Edinburgh Research and Innovation explains how University initiatives are helping new ventures get off the ground
Edinburgh Research and Innovation has supported more than 180 spin-out and start-up businesses that have emerged from the University in the last 10 years, and many have gone on to achieve notable success – though often in different ways. Edinburgh spin-out MTEM provided the University with one of its most significant ‘exits’ when it was acquired in 2007, less than four years after launch. While MTEM is now part of a larger group, the company still operates as a subsidiary entity and provides employment for staff within the Edinburgh region.
Sometimes, spin-out companies, such as text-to-speech software spin-out company Rhetorical Systems Ltd, are acquired by market-leading companies and integrated within their operations. This allows key people to return to the University to either resume research or support new ventures – as Matthew Aylott did in spinning out new text-to-speech technology company, Cereproc. Meanwhile, more established spin-outs, such as Wolfson Microelectronics, remain independent and compete successfully in global markets.
The rapid growth in company formation activity at the University has really emerged in the last five years, with 143 spin-out and start-up businesses formed. Many are still in their nascent stage, such as Pufferfish, Snocat, Actual Analytics, Hubdub, Carbon Masters, Fios Genomics and, perhaps most notable, NGenTec. Although clear evidence of any success is not obvious, and those companies are not yet acquisition targets, many have shown real signs of progress. For Edinburgh’s student entrepreneurs, support comes through LAUNCH.ed, an ERI initiative offering extra-curricular teaching, seminars, workshops and on-site support for students forming businesses during study or soon afterwards. Edinburgh’s commitment to supporting student enterprise starts at the very top through Professor Sir Timothy O’Shea,
Principal of the University, who has been a board director of both Scottish Enterprise and the Scottish Institute for Enterprise, and remains a fervent supporter of LAUNCH.ed.
With that level of support, it can be no surprise that LAUNCH.ed’s success has been sector-leading. During the academic year 2010-11, Edinburgh students formed 30 new businesses – the highest number ever. But the wider impact of entrepreneurial skills gained by Edinburgh
“Rapid growth in company formation at the University has really emerged in the last five years, with 143 spin-out and start-up businesses formed”
students and taken into their future employment is immeasurable. In the past year, we have also launched a new initiative, the Accelerator Pipeline, to meet the needs of postgraduate student technology entrepreneurs, who needed support comparable to those of members of University staff spinning-out platform technology companies. For the first time, these entrepreneurial students will have access to the sort of top-end high-growth company formation support only offered by a select group of universities to their top spin-out projects.
In the Accelerator Pipeline’s first full year of operation, the results have been hugely impressive. Of the ten projects and new
companies that are currently receiving support, one of these companies,
Speech Graphics, has secured a UK- wide award for its innovative audio-driven animation product.
The current economic climate is clearly impossible to ignore, but there is a credible view offered by many that during these times of change – some would say chaos – the greatest opportunities appear. Large companies are looking to save money and are willing to implement new processes to achieve that – perhaps taking risks with new suppliers, services or products. That makes it a time of opportunity for new spin-out and start-up businesses to show how they can deliver innovative or improved products/services to the market. Yes, other issues make it hard – lack of investment for instance. But it’s not an entirely negative situation. Indeed, the University has seen this as an opportunity to launch a new investment fund focused on Edinburgh’s new companies with global ambitions. Old College Capital has already made its first investment, with others to follow in the year ahead. However, what the current economic climate demands is careful planning and analysis of markets and their trends. Making the right decisions at the right time is critical. That is where ERI can help – from the very first step and onwards from there.
GET IN TOUCH For more details on
how the University of Edinburgh is encouraging entrepreneurship, contact…
Grant Wheeler Head of Company Formation & Incubation
grant.wheeler@ed.ac.uk
Speech Graphics is one start-up to receive support from the University. Read about its success and how the Accelerator Pipeline can help many other ventures. See overleaf on page 17
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