Academia in the UK is 'like oil to middle east,' says leading venture capitalist

Leading VCs addressed a packed room at the Imperial Founders Forum

The UK scientific community should take advantage of its expertise by building more home-grown tech companies urged industry leader Alexis Dormandy.

Mr Dormandy, a high-profile business leader who has launched brands such as Virgin Mobile and served as CEO of venture capital firm Oxford Science Enterprises, was speaking at event organised by Imperial Enterprise for academics aiming to commercialise their research.

He said “academia in the UK is like oil to the middle east – it’s a national asset. We should not just sell it to someone else but build it here.”

Mr Dormandy made the comment as part of a panel discussion that emphasised the need for the government, universities and academics to be ambitious about turning discoveries in fields such as the life sciences into commercial ventures.

He was speaking alongside Dr Charlotte Davison of British Patient Capital, Dr Lee Thornton of IP Group and chair Professor David Klug, Imperial’s Associate Dean for Enterprise in the Faculty of Natural Sciences.

Partnerships with investors

Advising founders on how to work with investors to create world-changing commercial products such as medicines and clean technologies, the panel spoke in depth about the human element of forming a successful business.

"Partnership for us is being together through the highs and lows… you’ve got to be able to be completely open and transparent.” Dr Charlotte Davison British Patient Capital

They were emphatic that working with an investor is never just about the funding and is always a partnership. “There are obviously negotiations and bravado before you invest,” said Dr Thornton, “but once you have invested you’re all in it together. You shouldn’t work with someone you don’t like just for the money. It’s very much a people business.”

The panel added that just as founders should carefully assess the investors they choose to partner with, they too assess startups not solely on their intellectual property but on the personal characteristic of their leaders. “We spend a lot of time getting to know the C-suite and founders,” said Dr Davison. “Going to the pub, dinner or a run maybe … Partnership for us is being together through the highs and lows… you’ve got to be able to be completely open and transparent.”

Skills focus

The meeting was the latest in a series of Founders Forum events by Imperial Enterprise, an innovation support team that helps the College’s staff and students translate their ideas into technologies, ventures and commercial projects that make a difference to the outside world.

“Even though founders tend to meet and pitch to investors all the time, it’s rare to be able to sit and ask VCs what they really want." Professor Mark Isalan

“To turn research into world-changing technology requires more than just great science, and through the Founders Forum we are working to help researchers develop as entrepreneurs,” said event organiser Dr Luis Gomez-Sarosi, Industry Partnerships and Commercialisation Officer (Natural Sciences).

Professor Mark Isalan in the Department of Life Sciences, who is working to develop and commercialise advanced gene-based treatments for rare diseases, said: “Even though founders tend to meet and pitch to investors all the time, it’s rare to be able to sit and ask VCs [venture capitalists] what they really want.”

He continued: “Some useful take homes were the fact they were often investing in the person rather than the technology, that they valued integrity very highly, and that they wanted founders to know their limits – i.e. direct the scientific advisory board but not necessarily be CEO. I’d definitely recommend the Forum to people thinking of commercialising their research or starting a spinout.” 

Boosting university innovation

The event coincided with the launch last week of Imperial’s new Strategy, which includes two major new initiatives to boost the College’s innovation capacities.

“There are obviously negotiations and bravado before you invest,” said Dr Thornton, “but once you have invested you’re all in it together."

A long-term initiative known as the Imperial WestTech Corridor will create a new innovation ecosystem stretching across West London while a new investment fund, Science Capital Imperial, will provide innovative businesses with significant funding.

The Strategy also highlights the rich landscape of advice, training and incubation available to staff and students at Imperial who wish to turn their ideas into world-changing innovations