Cambridge Innovation Capital pledges £100m+ for University spin-outs

The VC power player is committing at least £100 million to invest in Cambridge spinouts from the University of Cambridge to leverage what it calls the vast commercial potential in science and technology innovation developed by Cambridge researchers.

It heaps honey on the University of Cambridge’s plans to create four million sq ft of hi-tech development space at Cambridge West and a new Innovation Hub in central Cambridge to host spinouts, startups, and entrepreneurs.

To coincide with the funding bonanza CIC is launching a new Entrepreneur in Residence (EIR) programme, in partnership with the university, to identify IP with the potential for commercialisation and support academic founders as they start to build a business.

By matching experienced DeepTech and life sciences executives – many of whom have achieved significant exits with their previous businesses – with academics and high-potential IP, the EIR programme is set to increase the number of quality spinouts and accelerate the path towards viable commercialisation of the technology they produce.

The EIR programme, which will maintain a rolling cohort of up to six EIRs, is the latest project to support spinouts. The university has already launched the Founders programme to support new company creation; the Technology Investment Fund (TIF), a new proof of concept fund to de-risk world class research and enable faster commercialisation; and an additional £30m capital to the £100m AUM Cambridge Enterprise Ventures (CEV) fund to support increasing university investment in spinouts.

CIC is committing at least £100m as part of the launch of Fund III, its latest £250 million early-stage venture fund focused on the Cambridge ecosystem, to invest in University of Cambridge spinouts. Companies created within the EIR programme can access the new funding to support development from inception through proof-of-concept to early-stage growth.

Andrew Williamson, Managing Partner, CIC, said: “Our new EIR programme will provide academics and researchers with access to the £100m we are committing to University of Cambridge spinouts as they continue to develop breakthrough technologies.

“This expansion of CIC’s long-standing partnership with the university which provides unique access to the university’s academics and research, will help support the UK’s economic growth by developing the next generation of world-class companies.”

Dr Diarmuid O’Brien, Pro-Vice-Chancellor for Innovation at the University of Cambridge, said: “In 2024, the University of Cambridge created more spinout companies than any other university. It has also produced the most unicorns of any European ecosystem and generates £23 billion in economic interest linked to research and commercialisation each year.

“We are determined to do even more, and faster, through initiatives such as the new EIR programme and by attracting investment into our spinout companies working with partners like Cambridge Innovation Capital.”

Working closely with its investors, including major pension funds and family offices, CIC provides access to carefully constructed portfolios grounded in scientific innovation, long-term value creation and lasting positive impact.

CIC manages over £600 million of capital and invests across all manner of TechBio propositions from cancer therapies, genomic diagnostics and surgical robotics, to AI, semiconductors and quantum computing. Notable portfolio companies include Cambridge GaN Devices, CMR Surgical, Pragmatic, Riverlane and T-Therapeutics.

Riverlane is a quantum computing company founded by former DAMTP academic, Dr Steve Brierley, with support from CIC and CEV. It has raised over $120m to establish a leading position in the field of quantum error correction.

T-Therapeutics is a therapeutics company, founded by Professor Allan Bradley, with a unique TCR discovery engine that can unlock the power of T cells to treat cancer and autoimmune diseases. Based on University IP, the company has raised £48m ($59m) from CEV, CIC and institutional investors. The company recently nominated its first drug candidate for the treatment of solid tumours.

Cambridge GaN Devices (CGD) is another long-term success: After winning the 2017 postdoc business plan competition Dr Giorgio Longobardo and Professor Florin Udrea founded CGD which designs GaN power electronics devices for energy efficient power conversion in applications ranging from consumer products to electric vehicles. It has raised over $50m from CEV, CIC and a range of institutional investors.