A new £65 million fund targeted at creating and accelerating spinouts from Scottish universities can be a real gamechanger for the country’s health innovation ambitions—if deployed correctly

That is the view of leading healthcare innovation body InnoScot Health which believes the announcement from the Scottish National Investment Bank (SNIB) could be transformative for patients, “but only if focused on clinical need matched by real-world evidence generation”.

With NHS Scotland currently facing several challenges, including uncertainty around major restructuring plans, Innovation Commercialisation Manager at InnoScot Health, Fiona Schaefer notes that this cornerstone investment is hugely welcome to help translate world-class research and scale successful models in order to get innovative ideas into patients’ hands.

She said: “This move to address a clear funding gap and support the growth of health innovation from grassroots level sows the seeds of a healthier Scotland by attracting private capital from pre-seed stage—minimising isolated investment in embryonic MedTech start-ups emerging from our universities.

“Yes, it could lead to high-growth companies, but the Scottish Universities Fund must also be careful to consider the wider picture and target products addressing areas where there is most need for Scotland’s patients. This needs to be underpinned by strong data if it is to be effective in realising both health and economic ambitions.

“It must also factor in, and leverage, the hugely collaborative healthcare innovation ecosystem that Scotland already offers through its strong connections across NHS, industry, and academia.”

She added: “In order to ensure the Scottish Universities Fund hits the mark at the pilot stage, SNIB should further align MedTech investments with strict compliance and adoption pathways.

“That way, the investments can not only help to provide longer-term business support and economic transformation, but improved long-term health outcomes too amid a strengthened innovation ecosystem.

“It is positive that universities are invited to become strategic partners in the fund, helping to inform the pipeline of innovation and, in turn, commercial opportunity.”

Minister for Innovation, Technology and Tertiary Education, Alyn Smith insists that the fund—which will commence investing in spring next year—can catalyse areas in which Scotland has “real strengths” including health and life sciences.

SNIB will establish the investment platform as a central point to engage investors, founders and partners, aiming to help university-linked businesses to make the leap from research and innovation to commercial success.

The investment bank says the fund, comprised of two complementary strategies, is designed to work alongside its existing investor and business support networks including Scottish Enterprise.

A total of £15m has been set aside for the Ignition Strategy which will fund pre-seed to seed businesses, deploying early-stage capital in the £250,000 to £1.5m range.

The Accelerator Strategy meanwhile totals up to £50m and will contribute to Series A+ rounds, enabling companies to scale, funding rounds in the region of £2m to £8m.

Scotland has historically lacked a dedicated university fund, meaning that despite the country’s reputation for research excellence and innovation, many of its promising spinouts and start-ups continue to face scaling challenges.

The Scottish Universities Fund is expected to help address early growth challenges and better tap into the economic value of Scotland’s academic and research strengths.