24.8 C
Budapest
June 16, 2024
2020 – 2024 © MOCOHU Magyarország Hírek, Hungary News
Image default
cambridgeFeaturedfundingHÍREKIndustry AnalysisoxfordspinoutsThe East of EnglandThe South East of EnglandUniversity of CambridgeUniversity of OxfordVILÁG ANGOL

Oxford spinouts are riskier but more valuable than Cambridge peers – study

Spinouts from the University of Oxford receive pre-money valuations that are on average £4m higher than their University of Cambridge counterparts but they are 2.5 times more likely to go bust, research suggests.
On top of better valuations, data compiled by accounting firm Price Bailey found that University of Oxford spinouts have more equity capital to tap into.
The research shows that between 2012 and 2022 the University of Oxford generated 99 spinouts, almost double that of the 54 produced by the University of Cambridge.
“We don’t believe that these valuation figures are driven by sector valuation norms and, therefore, what this indicates is that generally University of Oxford spinout businesses attract higher valuations than both Cambridge, and other universities across the UK,” said Chand Chudasama, partner at Price Bailey.
Almost one-fifth (19%) of Cambridge spinouts have exited and of those all of them remain active. The report found that 9% of Cambridge spinouts went on to trade for five to 15 years with a profit of £5m+ for three consecutive years or £20m+ turnover.
Chudasama added that “Oxford-founded businesses have represented a higher risk than Cambridge-founded businesses, though this risk comes with potential for a higher reward.”
Another report found that University of Cambridge spinouts deliver nearly £30bn to the economy annually.
It comes as the government has launched a review to explore how the UK can better utilise the work of university spinouts to boost economic growth.
Investors have warned that universities are deterring external investment in spinouts by taking stakes that are too large.
However, the average university stake has declined from 24.8% to 17.8% between 2013 and 2022, according to a separate study published last month.
The post Oxford spinouts are riskier but more valuable than Cambridge peers – study appeared first on UKTN | UK Tech News.

Related posts

UK’s first app-based pension provider Collegia secures £500K funding ahead of its launch

MOCOHU

London’s iProov secures £52m for online facial biometric authentication

MOCOHU

Florence raises £28.5m for healthcare staff platform

MOCOHU

DMCA.com Protection Status


Pin It on Pinterest

Share This