North East England’s five universities are joining forces with North East Mayor Kim McGuinness to help transform academic research into high-growth new businesses.

The North East Spinout Inspire Fund is supported by £10 million investment from the North East Mayoral Strategic Authority (MSA) and a total of £12.5 million from Durham, Newcastle, Northumbria, Sunderland, and Teesside universities.

The Inspire Fund will particularly support early-stage spinout businesses, where risk is higher and funding is often harder to secure from private sector investors alone.

In its first five years, the Fund will support at least 30 spinout firms.

The Fund is part of the North East MSA £100 million regional investment framework administered by The North East Fund.

Along with both the North East Accelerate and North East Elevate funds, it aims to strengthen access to early-stage finance for start up, scale up and growing companies in North East England, and tackle long-standing market failures that have hampered innovation-led growth in the region.

North East Mayor Kim McGuinness said: “Small businesses are the beating heart of our economy and through the North East Fund we are backing the innovators and entrepreneurs with more than £100m to turn brilliant ideas into thriving companies creating thousands of new jobs as we go.

“Our five universities have joined with us in a bold move to ensure their spinout companies can succeed for our region and that shows the rest of the country how we do business here in the North East. We’re making deals that recognise the talent on our campuses to launch new enterprises, create jobs and grow the economy.”

Professor Andy Long, Vice-Chancellor of Northumbria University and Chair of Universities for North East England, said: “Durham, Newcastle, Northumbria, Sunderland, and Teesside universities are hotbeds of research that transforms lives. This Fund will help our researchers go further and faster in converting their ideas into successful businesses, creating jobs and prosperity in our region.

“We welcome the North East MSA’s significant investment in this Fund and all five members of Universities for North East England are determined to support this agenda. We are confident this investment will attract high-quality researchers and investors to the region, with the investment leading to clear benefits for the people of our region, the local economy, and the national economy.”

John McCabe, Chief Executive at the North East Chamber of Commerce, said: “The North East Spinout Inspire Fund shows that the region’s five universities, local government and businesses are ready to work together to create innovation-led growth, turning cutting-edge research into new business.

“We believe in the power of place-based approaches and innovation – solutions designed with, for and by the North East – to unlock our area’s full potential, and this is a strong signal that the region is ready to deliver.

“The fund will drive investment and create real opportunities in the North East, achieving maximum impact for our communities and delivering true inclusive economic growth.”