In addition to their current spinout programmes, the two universities aim to develop a fund that supports innovation among early-stage businesses in Wales. The fund will be operated independently of the universities and will allow for the commercialisation of research developed both within and outside of the institutions.
A variety of sources including private equity firms will finance the fund, which is subject to approval by the governing bodies of the two universities and the Welsh Government. A launch is planned for the first half of next year.
The joint venture has taken inspiration from the United States where university-sponsored venture capital funds are more prevalent. One of the most recent universities to launch a similar programme is New York University, which launched a $20 million (£12.3 million) fund in June last year. Several other universities, including the University of Wisconsin, Purdue University and Boston University, have started similar programs.
Aberystwyth University vice chancellor Professor Noel Lloyd comments, ‘Universities have a key role in promoting innovation and this is something which is at the very heart of our existing commercial activities. As we deepen and broaden the collaboration with our colleagues in Bangor, the time is now right to take a bold step in helping to support early-stage companies, looking to invest and grow here in Wales.’
Bangor University vice-chancellor Professor John Hughes adds, ‘The launch of this fund demonstrates the firm commitment of both universities to contribute in a very direct way towards the economic development of our region.’
Related: University spin-outs and venture capital funds come together
