Annual Review 2025-26

One of the most visible signs has been the funding attracted by many of the startups emerging from the University. Delta.g, the quantum gravity sensors company that originated in the UK Quantum Technology Hub for Sensors and Timing, raised £4.6 million in funding last September, a significant amount for a Birmingham spin-out at this stage. More recently, Healome raised £2 million to help commercialise its novel therapeutic eye gel, inspiring a visit from the Mayor of the West Midlands, Richard Parker.

The fact that these large seed rounds have been raised during what is still a difficult fundraising environment speaks to the quality of the ventures emerging from the University’s research base.

It also shows that Enterprise’s approach is proving effective. Our focus has never been on simply increasing the number of companies formed, but improving the quality of each opportunity. Our unique Operating Division model plays a key part, allowing startups to test services and technologies within the University environment before they become independent companies. They can establish commercial viability, build early customer relationships and create a more assured route to spin-out.

Universities are increasingly being expected to provide more than traditional degree outputs with knowledge exchange a core objective for every institution. Spin-outs are some of the clearest evidence of the economic impact that can be created this way, but Enterprise’s mission goes far beyond that.

Birmingham’s research has relevance across the UK government’s Industrial Strategy priorities. The University’s strengths in health and life sciences remain a defining part of the portfolio, supported by the proximity of major clinical and research institutions. But our opportunity set is broader, from novel materials and advanced manufacturing to AI-enabled technologies and quantum applications.

The rare earth recycling centre at Tyseley offers a powerful illustration. Its work addresses a strategic weakness in the supply chain for critical materials and magnets, helping to build greater domestic resilience. It shows how university commercialisation can contribute not only to company creation, but also to industrial capacity, sovereign capability and the transition to a lower-carbon economy.

KVector, which is developing hardware to solve a fundamental bottleneck in next-generation mobile and satellite communications, is another emerging startup to watch with potential to bolster UK national security and infrastructure resilience.

Regional collaboration is essential to delivering this agenda. Through Midlands Innovation and the £16 million regional Forging Ahead programme, universities are working more closely to develop entrepreneurial talent, share commercialisation practice and present a stronger collective proposition to investors.

Added to this, Midlands Mindforge, the patient capital investment company co-founded by eight universities in the region, is starting to play a meaningful role as a catalyst to bring additional investment to early-stage Midlands companies.

Physical infrastructure is equally important. The continued development of Birmingham Research Park, including new space for growing companies such as Celentyx, will help ventures scale close to the expertise and networks that helped create them. The ambition is not to retain companies indefinitely, but to give them the conditions to grow out into Birmingham and the wider Midlands ecosystem.

Students should benefit from this growth too. Internships, placements and graduate roles within spin-outs offer a direct connection between the University’s talent base and its emerging businesses.

The next phase will demand pace, coordination and confident storytelling. Enterprise activity is often complex, but its value becomes clearer when people can see the companies, meet the founders and understand the practical difference that research-led innovation can make.