INSIGHTS / News

Facilitator: Professor Michele Barbour, Associate Pro Vice-Chancellor Enterprise & Innovation, University of Bristol

Panelists:

Sakura Holloway, Investment Director, Future Planet Capital
Kate Ronayne, Investor, BGF
Andrew Wilson, Head of Commercialisation, University of Bristol
Dr Geeta Nathan, Deputy Director of Start-Up Ecosystem, Innovate UK

Insights from the Launch of the Deal Readiness Toolkit

At the launch of SETsquared’s Deal Readiness Toolkit, leaders from across the deep tech investment ecosystem came together to tackle a critical question: how can we strengthen the relationship between universities and investors to unlock more high-impact spin-outs?

University research is a powerhouse of innovation, but translating ideas into real-world impact often hinges on one factor: early-stage investment. Yet for many academic teams, attracting investor attention can be daunting. Conversely, investors often struggle to identify and access the most promising opportunities emerging from academia.

This panel discussion, led by Professor Michele Barbour, Associate Pro Vice-Chancellor for Enterprise and Innovation at the University of Bristol, explored the opportunities and challenges at this crucial intersection. As the senior academic responsible for embedding a culture of commercialisation across the institution and a founder herself, Professor Barbour brought deep insight into how universities can better prepare research teams for the investment journey and how investors can engage more effectively with academic innovation.

Where do you each see the value in having close links between universities and investors?

Sakura Holloway

“For us as seed-stage investors, the real value lies in getting involved early. Personally, I’m someone who entered the investment world later in my career. My background spans academia and commercialisation, so I naturally gravitate toward identifying emerging technologies and considering how they address real-world problems.

“We genuinely geek out over what’s next: new tech, deep science, evolving trends. That’s why close relationships with universities are so important to us; they’re often the source of those breakthrough ideas. And the value flows both ways. As investors, we bring a global perspective. We’ve seen what success looks like, what gets follow-on investment, scales up, exits, and creates impact on the world stage.

“That’s why many of us are involved in initiatives like the Deal Readiness Toolkit. It’s not just about funding; it’s about building a shared language and understanding each other’s challenges from the outset. That’s how we create strong, investable companies from the ground up in partnership.”

Kate Ronayne

“I’d echo what Sakura said about the value of seeing technology early, it’s a huge advantage. But for us, what really builds conviction is when that technology comes out of a high-quality part of the university ecosystem. For example, we’ve backed a materials science company out of Oxford, spun out from the lab of a global leader in fluorination chemistry. That kind of technical validation, when someone credible says, ‘This is the only way in the world to do this,’ is incredibly powerful. It reassures us that the science is not just sound, but world-class.

“That deep scientific credibility often forms a core part of our investment thesis, even if it’s easy to overlook at later stages when the focus shifts to commercial metrics. But early on, that technical heritage really matters.

“We also look closely at the surrounding ecosystem or what I sometimes call the ‘hinterground.’ How easy will it be for the company to attract the right talent? What does the local supplier base look like? Are their IP and patents being properly managed? These are critical factors for early-stage start-ups, and they’re often areas where universities can add enormous value.

“Strong university relationships don’t just provide validation, they help accelerate the journey. They enable founders to focus on building the business, rather than spending precious time trying to find someone who’s going to do some outsourced CAD work, for example. That support can make a meaningful difference at the early stages of company-building.”

From the university side, then what do you see as the benefits of a close relationship or the value?

Andrew Wilson

“Of course, funding is part of it – we support our spin-outs through every stage, but the value of investor relationships goes well beyond money. When we have strong, trusted relationships with investors, we’re much more comfortable sharing our early-stage pipeline, even when the ideas aren’t quite ready to spin out. That kind of early engagement is incredibly powerful. It allows us to shape those opportunities with investor input, so when they are ready, they’re far more likely to attract funding.

“What we truly appreciate is open and honest feedback. We don’t just want to hear, ‘It’s too early,’ or ‘It’s not a fit for my fund.’ If investors can go one step further – help us understand why – that’s gold. And in many cases, we do get that level of engagement, and it makes a huge difference. It helps us course-correct early, refine the proposition, and support the team better.

“Beyond that, we greatly value it when investors come into the university environment, whether it’s giving talks, sitting on panels, or simply helping to demystify the commercial world for academics. Even for those who aren’t spinning out companies yet, that exposure can shift mindsets and lay important groundwork for future endeavours.

“Just last week, we had one of the UK’s leading investors drop in, sit alongside us on an investment panel, and offer real-time insights into how decisions are made. That kind of hands-on involvement is hugely valuable. It’s all part of a much broader, ongoing collaboration, and it benefits everyone involved.”

Geeta, you represent the funder. What’s your take on this question?

Geeta Nathan

“I completely agree with what the rest of the panel has shared. From our perspective, we also play a key role in facilitating connections, especially through our programmes, where we have a portfolio of engaged investors we can introduce to universities, particularly at the early research stage. That early engagement is critical.

“But what really stands out to me, especially from an academic perspective, is the shift in mindset that investors help enable. We often see world-class research with enormous potential, but it’s investors who help reframe the conversation. They bring a business lens, asking: What does this need to become a viable company? What will it take to grow? It’s a different perspective from the technical one, and it’s essential for making the leap from research to real-world impact.

“Investors don’t just bring capital; they also bring expertise and networks. That combination is incredibly valuable for spin-outs navigating their early stages of development. It’s not just about launching a company, it’s about building one that can scale and succeed.”

What does good university commercialisation look like? And what do you see as the current challenges?

Geeta Nathan 

“From our perspective, one of the ongoing challenges, especially through the ICURe lens, is truly understanding the pre-seed investor landscape. It’s a diverse space. You’ve VCs, angel investors, and international players, each group bringing different expectations and priorities. So a lot of our focus right now is on getting to know these investors better: What does ‘good’ look like to them? What are they really looking for? And how can we start showcasing our pipeline of emerging programs in a way that aligns with that?

“Another key challenge is awareness. While there are certainly investors who understand spin-outs and actively invest in them, a much larger pool remains unaware of what spin-outs are or why they’re such compelling investment opportunities. That tells us there’s a real need for education and advocacy around the value of spin-outs and the potential they represent.

“From the investor’s side, we also hear about the fragmented access to universities. Many investors end up going institution by institution because there’s no clear or coordinated point of entry, no ‘single doorway’ into a region or a network of universities. Creating that kind of streamlined access point would be incredibly valuable. It would help build stronger, more consistent engagement across the ecosystem and lower the barriers to collaboration.”

Sakura Holloway

“I might flip the questions and start with the challenges, because the reality is that it’s a tough environment out there. Commercially, we’re dealing with global uncertainty, tariffs, and shifting markets. On the investor side, we’re still feeling the effects of a global market correction. It’s not an easy time to be building or funding a company.

“But within that challenge lies an opportunity. There’s real potential for local investors to back cutting-edge, emerging technologies at a time when global capital might be more cautious. And whether we admit it or not, many pre-seed investors end up doing a bit of venture building – working closely with universities, tech transfer offices, and academic founders to spot that ‘company-maker’: the core insight or breakthrough that justifies building a business around it.

“One of the biggest challenges we’re seeing now is that many early-stage companies are struggling to make the leap to Series A. There’s a lot of treading water. That’s why non-dilutive funding, such as grants, for example, is so valuable. Additionally, as pre-seed and seed investors, we’re reframing how we view seed extensions. These aren’t just bridge rounds anymore; they’re real, strategic funding rounds, often in the £500k–£1m range, because hitting milestones costs more and takes longer than anyone expects.

“Founders tend to underestimate timelines and costs. We’re all optimists, but realism is key right now and preparedness is everything. That includes being aware of what else is happening in the space: who’s working on similar problems, and how can we collaborate rather than compete?

“Finally, if we shift our perspective to the founder’s view, a change is happening. We’ve moved from B2C to B2B, and now we’re in a B2I world: founders need to sell to investors. Right now, the investor is the key customer, and fundraising is the number one reason companies are failing. So founders need to be laser-focused on what the next investor is looking for—and how to align with that to keep moving forward.”

Kate Ronayne

“One of the biggest universal challenges we see, across disciplines and stages, is that even by Series A, many companies still haven’t clearly articulated their value proposition. They remain deeply technology-led, often focused on being slightly better than a competitor in a narrow technical area, rather than stepping back and asking, ‘Who cares, and why?’

“At the seed stage, that’s understandable, but to make the leap to Series A, the commercial story needs to evolve in step with the technical progress. That’s where founders often struggle, and where tech transfer offices (TTOs) can provide real value. They have the perspective to spot when a company is falling into the common traps because they’ve seen the pattern many times before.

“Many founders are deep domain experts, often postdoctoral researchers, who are tackling everything for the first time. They’re hiring, building teams, and learning on the fly. And it’s common to see early hires with titles that don’t match the job, such as a financial controller labelled as a CFO, because the founder hasn’t yet seen what a great CFO really looks like.

“The real opportunity is in capturing and sharing the collective knowledge from across the ecosystem. Universities with dozens of spin-outs have a rich bank of experience. The challenge and the opportunity are to funnel that learning back to first-time founders so they can scale the learning curve faster and avoid repeating the same mistakes.”

Andrew Wilson

“Not all money is equal. We want to work with investors who bring more than just capital. The best partners are those who can form strong syndicates, open up their networks, help identify the right talent, and truly understand the technology to guide us toward key value inflexion points. That kind of support helps our companies move more smoothly through each stage of growth.

“One of the significant challenges, though, is keeping track of who is interested in what and when. There are numerous investors, just as there are many universities offering exciting opportunities. We need to find better ways to collaborate, so it’s easier for investors to see the right opportunities at the right time, and for us to present them in a more coordinated, accessible way.”

What can we do to address some of the challenges you’ve raised?

Andrew Wilson

“At a recent investor roundtable we held at SETsquared, we flipped the script. We invited investors in and asked them what they needed. One challenge that arose was geography: our universities are spread across the South of England, which makes it difficult for investors to stay connected to everything that’s happening.

“So, one solution we’re piloting is taking the opportunities to host themed events in London that showcase a broad mix of spinouts in one place, making it easier for investors to access high-quality deal flow without having to travel far.

“But it’s also about building long-term trust. Universities need to invest time in building strong, lasting relationships with investors, and we need to take pride in how we do deals, so they want to come back again and again.”

Geeta Nathan

“At Innovate UK, we’ve spent the past year shifting focus, not just on generating spin-outs, which the ICURe Programme already does well, but on understanding their impact. We’re now placing much more emphasis on investor partnerships and the pathways spin-outs take beyond the programme.

“A big part of that has been evolving the final stage of the programme to focus on spinout, business, and investment readiness. We’re now bringing investors into the process earlier, at key milestones, not just to assess opportunities, but to offer hands-on feedback and guidance through one-on-one office hours. It provides teams with critical input and offers investors early visibility into the pipeline.

“We’re also keen to deepen the two-way relationship. While we have a broad understanding of investor challenges, we’d love to gain a deeper insight into their perspective, especially as we shape our showcases and demo days to ensure we’re meeting their needs. As a front door to many emerging spin-outs, we’d welcome more investors getting involved, not just as funders, but as partners in helping build stronger, more investable ventures from day one.”

Kate Ronayne

“I think that, as investors, one key area we need to improve is our clarity of communication. Too often, we hide behind vague phrases like ‘it’s too early’ or ‘not quite ready,’ which ends up being unhelpful and confusing. We should be much more straightforward about what we want to invest in and what good looks like, even if that means having some tough but honest conversations.

“I also really like the idea of creating a single, consolidated place to meet spin-outs, especially those beyond the accelerator stage. It makes the process far more efficient for everyone. As investors, we can quickly triage companies, figuring out if we’re the right fit within minutes, based on stage, valuation expectations, and sector focus. This clarity helps founders understand the landscape better and target the right investors sooner.

“From a university perspective, helping spin-outs navigate who to approach and when can save a significant amount of time and increase the chances of securing successful funding. Getting that match right early is key.”

Sakura Holloway

“From a pre-seed and seed investor perspective, we fully expect conversations with founders and tech transfer offices to be iterative. We rarely say yes or no after the first chat; there are always follow-up questions and new insights. This isn’t testing founders; it’s because we’re constantly learning from other deals and want to bring that knowledge back to help you improve your proposition.

“Most early-stage opportunities aren’t yet ready for venture capital, and we want to invest only when companies can raise follow-on funding and scale. So, timing and the right fit are crucial.

“We also encourage early, open pipeline conversations. Especially in public sector spin-outs, the journey is long and still emerging, but the research and potential are strong. Building investable opportunities can take over a year, and patience and persistence are key.

“On our side, we bring a human touch. We want to back amazing founders and technologies, not just crunch numbers. To support this, we run internship programs with university students to expose them to what good diligence and venture investment look like. This helps spread venture know-how back into universities and build stronger, more prepared founders for the future.

“Ultimately, open dialogue and two-way learning between investors and founders are essential to bridge gaps and accelerate success.”

The Deal Readiness Toolkit is a free resource designed to streamline the research commercialisation process. Whether you’re an academic, a technology transfer professional, a lawyer or investor, the Toolkit provides a clear, structured pathway to spinning out or licensing research.

Access the Deal Readiness Toolkit