PraxisUnico and Young Company Finance join forces
The project output - The PraxisUnico Spinouts UK Survey - will, for the first time, provide a continuous series of data which will be updated regularly to give the most comprehensive and reliable source of information about this important sector. The extensive database includes 1,500 spinout and start-up companies. This is the first survey to investigate this sector by taking a cumulative ‘bottom up’ approach, compiling data company by company and updating it regularly. The annual reports will analyse and comment on trends in the data, and highlight successful outcomes for spinout companies as possible exemplars or case studies for improving success rates overall.
The first analysis of this data has already provided data to dispel some myths about spinout companies. For example, it is widely believed in some quarters that most spinouts are very short-lived - this is mistaken; the Survey shows that spinouts fare as well as most other early stage companies in this regard with73% of the companies in the survey over five years old.
Many spinouts grow into successful businesses with around 10% achieving stock market flotation or trade sale. The results are impressive - we have price data for only 50% of spinouts achieving trade sales, but the figures we do have, plus the valuations of spinouts floating on stock markets, amount to a conservative total of just short of £5 billion.
Dr Douglas Robertson, Chair of PraxisUnico and Director of Research and Enterprise Services, Newcastle University, said “It is clear that spin-out companies are only part of the technology transfer portfolio; but in my view an important part. Spinning out a company is a real challenge, particularly in the present financial environment. However, between 2003 and 2010 PraxisUnico data produced for the Department of Business Innovation and Skills shows spinouts going to trade sale and public offerings had a combined capital value of £4.8 billion. Clearly only a small part of that value will end up as a financial return to the university concerned, but the activity contributes employment and economic value to UK plc.“
The link with PraxisUnico will enable Spinouts UK to build the database and keep it updated much more effectively. Both partners share the goal of communicating the successes of the university commercialisation sector more widely.
For more about Spinouts UK, see the website www.spinoutsuk.co.uk
Posted on Thursday, 24 November 2011 under Company News