New £300 million investment vehicle to drive innovation across South Wales

Cardiff University, along with other SETsquared Partnership universities and leading regional investment firm QantX, have announced plans for a new spinout-focused investment vehicle to catalyse the creation and growth of science and technology companies.

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

Cardiff has been a member of the SETsquared partnership since 2021 and has collaborated with them since 2018 as part of the Research England and HEFCW-funded Scale-Up Programme.

Combined, the SETsquared Partnership of six universities - Bath, Bristol, Cardiff, Exeter, Southampton, and Surrey - has a research portfolio of over £600 million and has produced over 230 spinout 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 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 spinouts, 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.

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 £5 billion in investment and creating over 15,000 jobs since 2002.

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, with Science Minister Lord Patrick Vallance and MP Darren Jones in attendance.

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 the 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.”

Professor Roger Whitaker, Pro Vice-Chancellor for Research, Innovation, and Enterprise at Cardiff University said: “We are delighted by the development of this new investment vehicle. It will play a critical role in accelerating the commercialisation of our research and innovation, supporting delivery of breakthrough ideas to the market, and shaping the industries of the future.

Richard Haycock, Co-Founder and CEO of QantX, explains: “While the UK ranks fourth globally in cutting-edge research and innovation, we've often struggled to commercialise these breakthroughs. Our partnership with the SETsquared Universities aims to change this in South and Southwest England, and South Wales. We're witnessing a surge in university spinouts led by brilliant founder entrepreneurs.

“By connecting these visionaries with risk capital and expertise in transformative fields like life sciences, sustainability, and deep tech, we're cultivating a thriving innovation ecosystem. This collaboration will accelerate economic growth, create high-skilled jobs, and deliver returns for our investors. We're not just funding companies; we're empowering local entrepreneurs to transform our region into a powerhouse of innovation, ensuring the fruits of our world-leading research flourish right here at home."