Yo, c’mon, let’s crack this VC case wide open. We got a mystery brewing in the UK, see? Venture capital’s been hogging the spotlight down south, leaving the north feeling colder than a London fog. But a new gang’s arriving, sniffing out the hidden greenbacks in science and tech up north. Let’s find out who’s doing what and why this matters for the big picture.
The UK venture capital scene, for too long, has been a rigged game. All the fancy money been chasing the Golden Triangle – Oxford, Cambridge, London. Like moths to a spotlight, investment firms flocked to these posh universities, overlooking a goldmine of potential simmering up north like a forgotten cuppa. For years, innovations hailing from northern universities struggled to get the financial juice flowing to turn good research into booming businesses. It’s been a lopsided dance of investment and innovation.
The Northern Gritstone Heist
Enter Northern Gritstone, our key player. Think of them as the regional Robin Hood of venture capital, but instead of stealing from the rich they’re liberating funds from sleepy pockets and deploying them to promising science and tech ventures in the north of England. These guys ain’t messing around. Formed by Leeds, Manchester, and Sheffield Universities in 2021, they spotted a glaring hole in the financial ecosystem – early-stage funding for science-driven companies in their backyard. Their mission? Plug that hole, bridging what they call the “valley of death,” that nasty stretch where promising research goes to die due inability to get the startup capital to become a business that can fly.
Initially gunning for half a billion pounds—that’s serious cheddar—they sealed a final close of £312 million in November 2023. Now listen up, this wasn’t just some scratch found under a seat. This was serious commitment from local and regional pension funds, hefty coins from British Patient Capital, not to mention Aviva’s fat contribution. These investors ain’t just throwing money; they bet are they serious that the North does have money-making science that can compete with the Southern cousins. The Northern Gritstone now has about £362 million in its kitty to grow, meaning people got more faith that the northern innovation can actually go for the good money. They go after life sciences, deep tech, and health tech, hitting pre-seed all through series B which is really going all in. They’ve already given money to 29 companies, with almost £100 million in further investments, supporting advanced materials, energy, cognitive computation, and robotics.
Parkwalk Advisors: Partner in Crime
Now, every good gumshoe knows, no one pulls off a heist solo, even if on the good side of the law. Northern Gritstone’s secret weapon? Collaboration, baby. Their tag team with Parkwalk Advisors which is what got them where they are today. Parkwalk specializes in university spin-outs, and that is how they get more money through the magic of the Enterprise Investment Scheme (EIS). It also makes the investors feel special. The EIS fund offers tax bennies, turning high-risk ventures into irresistible investment bait. It’s not just about the money. It really comes down to how they work together, to push the money out into the North regions.
Northern Gritstone knows the northern university landscape through and through. Parkwalk is well-connected. It’s all about synergy. And they aren’t stopping there, these smart cookies. They launched NG Studios, a venture building accelerator pouring £15 million into their first batch of life science and deep tech startups. That’s more than just throwing cash at a wall and hoping something sticks. This is getting down and dirty with the company-building process.
The Broader Impact
Yo, the real caper here is bigger than just fattening some wallets. Northern Gritstone’s move sends ripples across the entire UK innovation map. It’s all about leveling the playing field, as aligning with the government’s “levelling up” plan. The goal is pumping capital into the North of England, boosting growth, creating high-skilled jobs, and creating a real tech hub for the world to see. This Northern Gritstone venture is being emulated. Now about 92% of Russell Group Universities across the country have their own thing to get funding from spin out activity.
The thing is they’re backing some serious smarties. adsilico got £3.5 million for computational medicine, and X-ray innovator Sileray is getting backing too as well. Northern Gritstone is looking to raise another £180 million by having a general partner-limited partner structure and really become the second-biggest fund in the university game in England by chasing the current top dog, which is the £600 million Oxford Sciences Innovation fund and is pushing to be as good as them. They want to create “unicorn” companies, which are those that go over billions of dollars in value.
Northern Gritstone’s presence is real in the UK, showing there is a future there. It’s getting the North involved again; and the Northern Gritstone is working with Parkwalk Advisors so that the northern regions can be seen as just as valuable as those in the South.
So, folks, the case is closed on this caper. Northern Gritstone’s done more than just spread some cash around. They have rewritten the map and reshaped the landscape. By betting on those who were forgotten, and teaming up with the sharp suits at Parkwalk Advisors, they’re not just boosting business – they’re building a future. A future that proves innovation ain’t got no postcode, and opportunity should be as common up north as a strong brew. It’s a win for northern innovation finally folks, and a reminder, that sometimes, they can be the new unicorn on the streets, not just in London.
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