Scottish Government commits £4.4m to university spin-outs

The Scottish Government has unveiled new initiatives to support university spin-outs as part of its plans to make Scotland a “start-up nation”.

Three projects will receive a share of a £4.4m injection set to help students and university researchers become entrepreneurs.

The funding was announced by Deputy First Minister Kate Forbes, who described universities and colleges as “engines of innovation”.

The biggest share will be awarded to the Proof of Concept Fund, a key commitment in the Programme for Government’s plan to make Scotland an innovation nation. It will aim to bridge the “valley of death” between research and commercial applications, helping beneficiaries develop protypes, pitch to investors, and analyse markets to attract investment.

Forbes said: “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.” 

A total of £800,000 will be given to the Spinout Pipeline Project. Led by the University of Strathclyde, the initiative will help share commercialisation expertise across Scottish universities, ending in a summit where innovators will pitch to potential investors.

And the Entrepreneurial Campus Blueprint will receive £700,000 to help college students develop business skills and link in with investors.

Professor Sir Jim McDonald, principal of the University of Strathclyde, said: "By harnessing the collective expertise of our universities, we aim to accelerate the journey from breakthrough ideas to market-ready ventures – creating high-value jobs, attracting investment, and supporting the next generation of innovators.”

A further £141,000, to be delivered over two years, will also support a new course at the University of Aberdeen to train 40 high school computing teachers – which are at a record level low. As of 2024, there were only 550 teachers nationwide to cater to the more than 2,500 schools.

Chief entrepreneur Ana Stewart said: “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.”

Stewart has been in the post since April, following the departure of former chief operating officer for Skyscanner Mark Logan.