Boosting university spin-outs

Saturday 14th June 2025, 3:36pm

New initiatives taking advantage of Scotland’s world-class reputation as an innovation nation have been announced by the Deputy First Minister Kate Forbes. 

A new package of funding has been launched to help transform Scottish university and college spin-outs into growing businesses. Just over £4.5 million will be split across the Proof of Concept Fund, the Spinout Pipeline Project, the Entrepreneurial Campus Blueprint, and a scheme to help prepare future generations for careers in tech-based businesses.



Capitalising on Scottish innovation

Scaling businesses account for the majority of net job creation in the UK and their annual turnover is around £1.2 trillion, highlighting the opportunity afforded to Scotland’s economy by investing in the drive to turn research findings into high-growth start-ups.



The package includes:

  • £2.9 million for the Proof of Concept Fund which will explore the commercial potential of research projects by developing prototypes and pitching to investors, as well as analysing markets to attract further investment 
  • £800,000 for the Spinout Pipeline Project which, led by the University of Strathclyde, will help share commercialisation expertise across Scottish universities, culminating in a summit where innovators will pitch to potential investors
  • £700,000 for the Entrepreneurial Campus Blueprint which will help college students to develop business skills and link in with investors

“The Scottish Government is fostering and supporting entrepreneurial talent as part of strategic investment to capitalise on Scotland’s reputation as a start-up nation. The economic opportunities presented by this are enormous.  

“Our universities and colleges are the engines of innovation. They are known the world over as the home of some of the greatest ideas and inventions ever made and can present real solutions to the challenges we face.   

“This new investment underlines our commitment to realising the economic potential of the incredible work taking place across Scottish universities and colleges.” 

Deputy First Minister Kate Forbes

"The world's leading entrepreneurial economies are often powered by universities with strong entrepreneurial cultures. This is an ambitious package which positions Scottish institutions as drivers of start-up creation and growth.

“I look forward to collaborating with universities to maximise the impact of this funding."

Ana Stewart, Chief Entrepreneur

“Alongside our UK and international colleagues at the TenU grouping of tech transfer offices, we have been campaigning for more government PoC funding to support academic founders in the vital early stages as they work to bring their discoveries out of the lab."

Dr Andrea Taylor, CEO, Edinburgh Innovations

Proof of Concept Fund

Applications to the Proof of Concept Fund are open. The establishment of this initiative was a commitment in Programme for Government 2025-2026.

Since 2011, Scottish universities have helped to produce 240 spin-outs. This includes Neuranics, a 2021 joint spinout from University of Edinburgh and Glasgow, which has developed state-of-the-art sensors used across a variety of sectors, including in healthcare and gaming, and has raised $8 million to accelerate its growth. The company is also backed by an £800,000 grant from Scottish Enterprise. 

Proof of Concept Fund



Source and full article: Scottish Government 



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