Cranfield spin-out companies

Cranfield University welcomes the TenU's University Spin-out Investment Terms (USIT) Guide and the Government’s Independent Review of University Spin-outs. We fully adopt its recommendations.  

Cranfield specialises in applied R&D in several key sectors - aerospace, manufacturing, transport, water treatment, energy, environmental technology and defence - and has very strong, embedded relationships with many industrial partners. We recognise that much of the technology developed by our world-class community of researchers, engineers and scientists has industry applications and the University should strive to ensure positive impact from research for industry and the UK economy. 

Cranfield’s approach for the past few years has been within the spirit of the spin-out review. We have 11 existing spin-out companies that, combined, have raised over £50m in external investment and employ c.200 people. Over the last five years, the starting equity stake we have taken in these companies has ranged from 8% to 25%.

The University actively encourages entrepreneurial activity within its research community, and the technology transfer office works closely with the Bettany Centre for Entrepreneurship to support both academics and students. 

The University's Corporate Plan 2022-2027 Research and Innovation Strategy includes a clear commitment to support innovation and entrepreneurs, and we support start-ups and spin-outs by providing access to business incubation facilities. Cranfield is also one of the Midlands Innovation group of universities and is a founder of Midlands Mindforge Ltd. 

The University implemented a revised IP policy in 2023, including new processes for spin-out creation. These were intended to accelerate the spin-out process as well as being transparent, simple and fair to all parties.

The spin-out process

The Technology Transfer Office (TTO) works with academic innovators throughout the process, from discovery and disclosure, commercial validation, intellectual property protection, through to commercialisation. The TTO provides financing for early-stage IP protection as well as specialist advice, support and training.

On identification of a potential opportunity to form a spin-out company, the TTO supports the development of a commercial proof of concept and works with the inventor(s) to pull together an investment ready business plan.

As part of the business plan development, presentations are given to the Research and Innovation Office Commercial Partnering Panel, and to the University’s Spin-Out Advisory Board (SOAB). This allows for broad oversight of emerging opportunities as well as specialist input and advice at an early stage in the process. It also allows for questions to be considered and addressed in a timely manner to facilitate the final approval process. Membership of SOAB includes the Chief Operating Officer (COO), the Director of Finance, the PVC of Research and Innovation and the Director of Research and Innovation. 

A finalised proposal is formally submitted to the SOAB. If it is supported, the SOAB makes a formal recommendation to the University Executive to take equity in the company, with final sign-off by the Director of Finance. This process can take place within no more than a month if the company team are able to provide full information and respond to questions in a timely manner. The SOAB can meet on an ad-hoc basis as needed and the University Executive meets fortnightly. This process often happens in parallel with investor discussions so we can ensure the plan meets potential investors’ requirements.

The COO or their delegate would ordinarily be the signatory on any agreements arising on behalf of Cranfield University.

Equity stake

We take a two-tier approach to starting equity stakes, taking no more than a 30% share in IP-intensive companies, most typically 20-25% (with no royalties or other licensing fees), and no more than a 10% share in IP non-intensive companies.

Source https://www.loxhamprecision.com/about-us/

HXT was established in 2012 by Cranfield University and Nottingham Trent University to commercialise patented X-ray diffraction technology.

HALO X-ray Technologies was formed in April 2012 and is an innovation company developing new and disruptive materials identification systems for aviation security, medical systems and process control applications. The HXT patent portfolio, currently licensed from academic partners, protects our core IP. Industry-standard lab- and time-bound X-ray analysis techniques are now possible as real-time solutions for multiple industries by implementing new X-ray optics to dramatically improve signal strength. This significantly translates underlying and well-established science into a solution that can solve industrial and commercial applications at speeds required for these markets. As an example, aviation security has historically used technology that typically only estimates if a material is a threat. This leads to false alarms, long delays through checkpoints and frustrated passengers. 

HXT technology has capability to definitively identify material and for the first time at speeds that will enhance rather than slow checkpoint systems and at a cost point that is well-aligned with our target markets. HXT platform technology can provide medical systems for point-of-care solutions to address an ageing population and process control systems providing definitive and rapid materials analysis to improve efficiency for in-line industrial manufacturing.

HXT IP provides platform capability across numerous sectors, realising disruptive and compelling solutions and offering significant business opportunity in all areas of application.

The current focus is on aviation and border security and there are a number of opportunities specifically for this sector, such as:

• Drugs and currency detection for postal systems.
• Personal electronic devices screening (PEDS).
• Checkpoint screening system for explosives detection.

Find out more on the HXT website.

Pazul is a spin-out company from Cranfield University focused on commercialisation of sensors for environmental water monitoring.

Their first product is a multi-purpose innovative phosphate sensor with unique properties that makes it is a game changer in a competitive market.

Pazul envisions transforming the global environmental monitoring sector with advanced sensor technology that combines speed, ease of use, and reliability to support a cleaner, sustainable future.

Source: https://pazul.co.uk/

HEROTECH8 is a Cranfield University spin-out that delivers connected drone-in-a-box technology to support round-the-clock automated drone operations. Their solution enables industries to automatically deploy, recover and recharge drones without ever requiring human interaction to fly.  The revolutionary technology allows mass adoption and access to aerial inspection and monitoring capabilities, without the need for onsite pilots or teams. The systems can be accessed anywhere in the world by the users and can provide immediate live feed data at the touch of a button. By leveraging advances in IOT technologies, the entire operation of the remote access drone can be completed through cloud services and secure servers.

Source https://www.herotech8.com/about-us/

CorrosionRADAR is a Cranfield University spin-out company that enables data driven asset integrity management.

Hidden corrosion threats like Corrosion Under Insulation (CUI) is better managed with online risk monitoring enabled by CorrosionRADAR solutions. Online risk dashboard powered by patented moisture and corrosion sensors under insulation makes inspection decisions much more efficient.

Source https://www.corrosionradar.com/

Centillion® is a Cranfield University spin-out that has developed a new flow chemistry system combining precision-engineered modules with powerful computing inspiring chemical discovery & manufacturing ingenuity.

Find out more on the Centillion Technology Ltd website.

Source https://www.waam3d.com/about

CAeS was created out of Cranfield University and has been operating as a commercial entity at the cutting edge of aircraft development for over 30 years, having been trusted by global aerospace OEMs, including Rolls Royce, Airbus, Boeing as well as NASA to undertake complex R&D projects which have included aircraft design, modification and assembly.

They are zero-emissions aviation pioneers developing a world-leading hydrogen aircraft by converting the Britten Norman Islander. They are set to deliver the world’s first zero-emissions, regulatory-certified, passenger carrying hydrogen aircraft by 2026. The company’s ultimate goal is to become an airframer of low and zero carbon sub-regional and regional aircraft and to play a critical role in the decarbonisation of the aviation industry.

CAeS was created out of Cranfield University and has been operating as a commercial entity at the cutting edge of aircraft development for over 30 years, having been trusted by global aerospace OEMs, including Rolls Royce, Airbus, Boeing as well as NASA to undertake complex R&D projects which have included aircraft design, modification and assembly.

Source https://www.linkedin.com/company/cranfieldaerospace/about/

Tozaro® is a Cranfield University spin-out developing a novel suite of reagents to help transform the development and manufacture of viral vectors in cell and gene therapy. Operating at the intersection of chemistry and biology, Tozaro’s smart polymers are evolving existing analytical and purification processes to realize a future where advanced therapies are accessible to all.

Source: https://tozaro.com