TenU Hosts Global Proof-of-Concept Models: six key insights

In Autumn 2024 the UK government promised £40m split over five years in new ringfenced proof-of-concept funding for the whole of the UK,. This is a great start, but in Belgium, a single university receives €20m from the local government every year for the same purpose. We know that a well-funded ecosystem can transform the impact of research – a US report [1] demonstrates that POC funding boosts innovation transfer, convenes the innovation community, attracts investment  and creates jobs, so it should underpin any innovation-led economy. Specifically, the report suggests that every dollar invested in PoC funding attracts $17 on average in reported follow-on investment. 

In the run up to the new Industrial Strategy and 2025 Spending Review, TenU asked a distinguished panel of experts how we can ensure that the UK capitalises on the investment in research, stays globally competitive and gives brilliant research ideas the best chance to reach the market and drive economic and societal growth? 

Watch the video here and read below for key insights:

TenU member Paul van Dun, General Manager, KU Leuven Research & Development, chaired the panel featuring: 

• Anne Dobrée, Investor Director, Parkwalk Advisors,

• Holly Reeve, CEO and co-founder at HydRegen,

• Karin Immergluck, TenU member and Executive Director of the Office of Technology Licensing and the Industrial Contracts Office, Stanford University, and

• Stuart Wilkinson, CEO, Knowledge Exchange UK.

With over 200 attendees from more than 20 countries, this well-attended event demonstrated that the topic of POC funding is of interest and relevance to a wide audience. 

In what follows, we set out six key insights from the discussion: 

        1. Funding is critical to retain entrepreneurial academics and unlock their potential 

The discussion made a very compelling case for why POC funding matters on an individual and practical level. Hearing the first-hand experience of Holly Reeve highlighted that for many academics seeking to make the transition from research to commercialisation, the practicalities of securing funding can make all the difference in determining whether that research succeeds in delivering real world impact: 

‘One of the things that happens is that especially when translating science from university…you have someone who's very keen and very invested and has the right skill set to push it across the line, but the university can't secure their job. So if you miss out on that time, you don't only miss out on that science, you miss out on that person.’ 

        2. The speed at which funding can be accessed makes a big difference 

This emphasis on the need for alignment between the individual commercialisation journey and the funding available also highlighted that it is not only the availability of POC funding but also the speed at which funding can be accessed that impacts the viability of a commercialisation project. Anne Dobrée noted that this can be a challenge with some of the staged funding that is currently available in the UK, which introduces a delay to the POC process. At an individual level, this can make a huge difference as to whether it is a viable option to pursue a commercialisation project. 

        3. Research commercialisation boosts the whole economy  

In addition to considering the value of POC funding at an individual project level, the discussion touched on the broader benefits of POC funding. The panel chair, Paul van Dun, made the point that this consideration was critical in the Flemish government’s decision to fund POC, using funding from outside of the existing regional research budget. In this case, there was widespread consensus from government and industry stakeholders that research commercialisation adds value to society and the economy.  

        4. POC funding drives a culture shift in innovation ecosystems 

Karin Immergluck provided valuable reflections on how the availability of POC funding in Stanford has contributed to the ‘snowball’ effect on the wider innovation ecosystem, with a considerable proportion of students and academics choosing to come to Stanford because of the entrepreneurial environment. Karin noted that POC funding had been critical in driving a culture shift, stating that  

‘You need that basic research and you also need to see the results of that research be developed into products and services to benefit the public and to generate that economic engine and that's the culture that you need to develop.’ 

Paul agreed that this ‘shift in mindset’, leading to increased entrepreneurial activity by academics who can see this as a potential pathway had been apparent at Leuven following increasing investment in POC. 

        5. Funding alone is not enough: support and resources are crucial 

The panel noted that funding alone isn’t sufficient to drive successful outcomes, and the support and resources available to entrepreneurs is also critical. Holly again provided personal insight into how mentoring and support for developing a wide range of skills can help to shape the commercialisation journey. Having the time to engage with industry and investors provides valuable insight into which research ideas have the most real-world credibility. Stuart Wilkinson reflected on the range of ecosystems across the UK and observed that not only is funding more available in more mature ecosystems, but there tends to be a greater availability of resources and support for the commercialisation journey.  

        6. Expert input is needed for most effective allocation of funding 

Finally, the panel reflected on some of the specific considerations about allocating funding in the UK and the value of bringing together a range of expertise to feed into decisions about how POC funding is allocated. Both Stuart and Anne noted that having knowledge specific to local ecosystems was very valuable in helping to develop balanced regional portfolios. It was noted that different levels of funding are appropriate depending on the technology in question and so a combination of expertise is needed to ensure that POC funding is allocated to achieve maximum impact and drive a thriving innovation economy.