Aviva invests £15 million in university spinods in the North of England
- Aviva has announced its investment of £15 million into Northern Gritstone's funding round.
- The £50 million funding initiative has raised money from various sources, including Northern LGPS.
- This funding aims to enhance the productivity of the North of England by supporting promising university spinout companies.
In the UK, Aviva, a notable player in the insurance and asset management sectors, has become one of the key backers of Northern Gritstone, an investment vehicle specifically designed to funnel capital into promising university spinout enterprises. This initiative comes as part of a significant funding round announced recently, where Northern Gritstone secured £50 million from various investors, including a sizable contribution of £35 million from Northern LGPS and additional funds from Fulcrum Asset Management. The announcement was expected to be made public on Thursday, reflecting the increasing recognition of the potential of university spinouts to drive innovation and economic growth. Lord O'Neill, the chair of Northern Gritstone and a former Treasury minister, has expressed gratitude for the support, illustrating the firm’s commitment to fostering world-class businesses that originate from the university ecosystem in the North of England. This funding is intended to boost productivity within the region by capitalizing on the innovation that exists in fields such as deep technology, life sciences, and artificial intelligence. The total permanent capital of Northern Gritstone has now risen to over £360 million, reinforcing its strategy of building a robust portfolio of high-potential companies. The role that university spinouts play in the UK economy cannot be understated, especially in light of recent challenges that numerous other ventures outside of Northern England have faced in securing adequate funding to achieve operational success. The injection of funds into Northern Gritstone signifies not only a financial investment but also acts as a beacon of hope for other startups within the educational framework who may struggle to gain traction. Ian Johnson, the chief executive of Northern Gritstone, emphasized the organization's capability of nurturing innovation from the north to cultivate globally competitive businesses. Aviva’s participation in this funding initiative is led by Ben Luckett, managing director at Aviva Investors, who highlighted the important role of university spinouts in driving real-world impact and preparing the UK economy for future demands. The support from established investment entities like Aviva is vital for the growth and development of the innovation landscape, ensuring that valuable research and technology originating from universities can transition into commercially viable businesses that create jobs and spur overall economic progress in the region.