University of Manchester launches £10M fund to back student and alumni founders
What's the deal? The University of ManchesterDealroom has a profile for this one. Try Dealroom → is launching a £10 million Founders Fund to provide pre-seed investment to startups and spinouts affiliated with the university. It has secured an initial £3 million and aims to raise the rest predominantly through philanthropy. The fund will be managed by Innovation FactoryDealroom has a profile for this one. Try Dealroom →, the university's tech transfer office, in partnership with innovation directorate Unit MDealroom has a profile for this one. Try Dealroom →.
Who's backing it? So far the fund has a £2 million commitment from the university and a £1 million philanthropic gift from alumnus and technology entrepreneur Kevin Lomax. Investments are expected to range from £25,000 to £250,000, typically for a small, non-controlling equity stake.
Why now? The launch opens a week-long programme at the university's inaugural Innovation Festival. The fund is part of Challenge Accepted, a broader university initiative to turn research and ideas into impact. The first call for applications is expected in January 2027.
What's the endgame? The fund aims to close a funding gap facing student, staff, and alumni entrepreneurs as they build viable businesses. Founders will also get access to Unit M's networks and expertise, positioning ventures to attract follow-on private investment, including potential seed-stage backing from investors such as Northern GritstoneDealroom has a profile for this one. Try Dealroom →.
A recycling model. Returns from successful investments will be reinvested in future ventures. The approach is designed to support successive generations of founders and retain entrepreneurial talent in the region.
"It represents a strong commitment from the University to our innovation agenda and to backing talented students, colleagues and alumni who have the ambition to turn great ideas into high-growth ventures," said Aline Miller, associate vice president for enterprise and chief scientific officer at Unit M.
Lomax said he hoped the fund would "help create a legacy, supporting entrepreneurs to turn their ideas into businesses, creating jobs, and helping drive economic growth."
The signal: Universities are increasingly building their own capital pipelines to keep spinout talent close to home. Manchester's evergreen, philanthropy-led fund signals a bet on institutional innovation as a long-term economic engine, targeting Europe's most inclusive innovation ecosystem by 2035.
Read more: aboutmanchester.co.uk
Image credit: Generated with Gemini
