New analysis reveals rise in university start-ups like Derby-based Goldbox, but leaders warn of risk of losing them to competitors

New analysis from an advocacy organisation which represents universities in the UK has revealed that by 2028, around 27,000 new start-ups – with a predicted turnover of around £10.8bn – could be established at institutions across the country.  

But, in order to continue seeing the growth of innovative start-ups at UK institutions, Universities UK (UUK) warns that our world-leading universities must be sustainably funded.  

Figures from Higher Education Statistics Agency (HESA) show there has been an explosion in the last decade of start-ups supported by universities, as more institutions have set up business incubators and begun teaching students enterprise skills. 

They show that 38,750 companies have emerged with the support of universities since 2014/15. Data also shows that start-ups at universities are creating jobs with almost 65,000 people employed locally during the academic year 2022/23. 

Success stories include Goldbox Productions; a video and photography agency established by four enterprising University of Derby Film Production graduates while they were still studying.  

The company has benefited from a range of support from the University including helping them to build entrepreneurial skills, access to resources, co-working space and incubation facilities. 

The company, which is now based at the University’s Enterprise Centre and which has a strategic partnership with the University, has acquired some significant clients and seen them work with brands including Dunelm, Hilton Hotels and Be Military Fit Urban with Bear Grylls. 

Joshua Spaticchia, CEO of Goldbox Productions, said:

“We have really benefitted from our strategic partnership with the University of Derby. It has provided us with access to lots of opportunities – from office space to a mentor that helped us with our strategy and business development activity. We also access equipment and expertise from across the wider organisation.  

“Working with the University has enhanced our operational capabilities and delivered wider potential for strategic growth, as we take on larger commercial contracts and make connections with a much broader network.” 

In order to continue seeing the growth of innovative start-ups at UK institutions, UUK warns that our world-leading universities must be sustainably funded. They are calling on the government to act now, so universities can continue to support start-ups like Goldbox Productions to scale up Britain.  

This support includes business mentors, providing space and facilities, connecting with investors and hosting networking events.  

University leaders are now warning the government that more firms established at their institutions are being tempted to take their talents and innovations to London or overseas due to a lack of funding available to scale up. This trend is already happening with tech start-ups, leaving some to describe the UK as an ‘incubator economy’ where firms thrive only to be sold or relocated overseas.  

Vivienne Stern MBE, Chief Executive of Universities UK said:

“The growth in university supported start-ups over the last decade has been a staggering success. We can do more – both to encourage and support new businesses born in our universities, and to ensure that they can remain in the UK and grow here.  

“This is just one of the ways that our universities can put their shoulders to the wheel with government to achieve stronger growth. Of course, they need to be on a firm financial footing to do this. 

“Universities provide a foundation for economic growth through the knowledge exchange they conduct, and the graduates they educate. Few people know that they also work closely with businesses to help them grow too. Using their kit and equipment, and their expertise, they support start-ups, generate their own spin out companies, and work with businesses from the wider economy to provide practical assistance to help them grow.” 

Many university start-ups have benefited from the foundational funding provided by the Higher Education Innovation Fund (HEIF) which supports the development of knowledge exchange. Recent findings from UKRI revealed that the return to HEIF investment in supporting student entrepreneurship and enterprise is £15.6 for every £1. UUK is calling on government to make a long-term commitment to this programme, as well as support the establishment of collaborative investment partnerships across the UK, and to help universities to work in partnership with businesses and local leaders to support local growth and opportunity in all economic areas and emerging clusters.  

Professor Warren Manning, Provost – Innovation and Research at the University of Derby, said:

“University supported start-ups such as Goldbox Productions are crucial to the UK economy. They drive innovation, create jobs and challenge existing industries with fresh ideas, new technologies and foster competition. 

“Start-ups also attract investment to the region, encourage entrepreneurship and can transform entire sectors, making them a key force in shaping the future economy.  

“Our partnership with Goldbox aligns with the University’s ambitions to deliver innovative and entrepreneurial solutions. The comprehensive support offered through the partnership not only strengthens Goldbox’s business operations but also underscores the University’s commitment to fostering innovative industry partnerships that drive mutual growth and success. 

“It is vital that universities are supported as they continue to strive for academic excellence and aim to create more successful start-ups. It is important that we promote a world where ideas can grow into forward-thinking enterprises.” 

Universities UK (UUK) has launched Unis start up the UK, the group’s latest initiative to showcase the amazing student start-ups and the work universities are doing to support them. The initiative also aims to highlight the vital role these start-ups play in boosting economic growth nationally and locally by creating jobs and attracting investors, as well as how universities are equipping entrepreneurs with the right skills through incubator hubs.