Scheme aimed at fostering local investors to ensure UK innovations yield commercial returns
In his autumn statement, Jeremy Hunt will introduce a US-inspired initiative to cultivate local science and technology investors, prioritizing the commercial success of UK innovations. Concerned about Britain’s tendency to underutilize scientific advancements, the chancellor is anticipated to unveil a fellowship program aimed at educating a new cohort of science and technology venture capitalists.
Hunt contends that a modest investment can foster specialized venture investors, ultimately contributing to growth and advancements in fields like vaccines, robotics, and artificial intelligence.
The £3 million program, providing up to 20 spots, is modeled after the highly successful Kauffman Foundation in the United States. The Kauffman Foundation has trained over 800 investors, overseeing funds valued at more than $1 trillion.
According to a Treasury insider, “The British science and technology sector is the catalyst for exponential growth that will propel our economy for decades.
The initiative will cultivate a new wave of investment professionals, aligning with our aspirations to become a science superpower, inspired by the notable success of comparable programs in the United States.
The Department for Science, Innovation, and Technology will spearhead the development of this initiative, as recommended by the Prime Minister’s Council for Science and Technology, comprising experts in the field.
Hunt envisions that this scheme will effectively address the council’s concern regarding the need for the UK’s venture capital industry to cultivate in-depth expertise in science and technology. This, he believes, is crucial for the government’s goal of establishing the UK as a science superpower. Historically, Britain has trailed behind other nations, especially the United States, in translating its scientific breakthroughs into commercial success.
According to sources in the Treasury, the fellowship program marks the latest stride in realizing the Mansion House reforms outlined by Hunt in July 2023. These reforms aim to channel more pension capital into high-growth companies, including those within the UK’s science and tech sectors, benefiting both savers and the economy.
An insider from the Department for Science, Innovation, and Technology commented, “Science and technology are the gateways to a multitude of benefits and opportunities, from transformative advancements in healthcare to the establishment of entirely new industries in areas such as AI and quantum.
However, groundbreaking innovations in the UK frequently stay confined to academia or are acquired by foreign investors.
Expanding the cadre of investors well-versed in science and technology sectors will unleash substantial financial resources for the exceptional innovation occurring in the UK. This, in turn, will facilitate the establishment of British-based industries in future technologies.
