Initiative designed to encourage domestic investors to ensure that UK innovations generate commercial returns
In the autumn statement, Jeremy Hunt is set to introduce a US-inspired initiative to nurture local science and technology investors, placing a strong emphasis on the commercial success of UK innovations. Concerned about the underutilization of scientific advancements in Britain, the chancellor is expected to unveil a fellowship program dedicated to educating a new cohort of science and technology venture capitalists.
Hunt argues that a modest investment can stimulate the development of specialized venture investors, ultimately contributing to growth and advancements in fields such as vaccines, robotics, and artificial intelligence.
The £3 million program, offering 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 aims to cultivate a new wave of investment professionals, aligning with our aspirations to become a science superpower, drawing inspiration from the notable success of comparable programs in the United States.
The Department for Science, Innovation, and Technology will lead the development of this initiative, as recommended by the Prime Minister’s Council for Science and Technology, which consists of experts in the field.
Hunt anticipates that this scheme will effectively address the council’s concern about the need for the UK’s venture capital industry to cultivate in-depth expertise in science and technology. He believes this is crucial for the government’s goal of establishing the UK as a science superpower. Historically, Britain has lagged behind other nations, particularly the United States, in translating its scientific breakthroughs into commercial success.
According to sources in the Treasury, the fellowship program represents the latest step in realizing the Mansion House reforms outlined by Hunt in July 2023. These reforms aim to direct 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.
Nevertheless, revolutionary innovations in the UK often remain limited to academia or are acquired by foreign investors.
Broadening the pool of investors knowledgeable in science and technology sectors will unlock significant financial resources for the outstanding innovation taking place in the UK. This, in turn, will facilitate the establishment of British-based industries in future technologies.