Cranfield spin-out and start-up 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 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 spinout 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 Research and Innovation, 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.

Loxham Precision Limited span out from Cranfield University’s Precision Engineering Institute in July of 2011. It provides precision engineering machines and services, based on research performed at Cranfield in the EPSRC funded Ultra Precision Centres. The company manufactures next generation ultra-precision machines and motion systems. Its products are compact, low energy demanding, fully recyclable and easily automated.

Lead academics: Paul Shore and Paul Morantz are both now at the National Physical Laboratory; Pat McKeown OBE FREng who established the Cranfield Unit for Precision Engineering and Euspen.

Find out more on the Loxham Precision Ltd website.

HXT was established in 2012 by Cranfield University and Nottingham Trent University to commercialise patented X-ray diffraction technology, based on ground-breaking research carried out by Professor Keith Rogers, Director of the Cranfield Forensic Institute and Professor Paul Evans, Head of the Imaging Science Group at Nottingham Trent University. The company’s initial product, the HXT264 screening system for air passenger bags, has been successfully trialled at airports and will achieve full certification in the next 12 months. The company is based in dedicated premises at Castle Park, Nottingham, currently with 12 employees.

To date, HXT has secured over £1.5m in investment from venture capital firm Midven, supported by the UK Government Futures Fund.

In April 2019 the US Department of Homeland Security (DHS) Science and Technology Directorate (S&T) awarded $1,656,206 to HXT to develop and implement an automatic threat resolution system for use with X-ray imaging of carry-on and checked baggage.

Find out more on the HXT website.

Academic contact: Professor Keith Rogers.

Bedfordshire-based MIP Diagnostics Ltd develops and markets in-vitro diagnostic devices based on molecularly imprinted polymers (MIPs). The business has developed a novel, proprietary design and development process to make nanoMIPs; nanostructured polymer particles typically containing a single binding site for the target of choice. NanoMIPs could be a viable alternative to antibodies within the IVD sector, offering high performance, robust characteristics and a reliable, ethical supply.

The company was originally founded in 2015 as a spin-out from both the University of Leicester and Cranfield to commercialise the ground-breaking advancements in nanoMIP technology from Professor Sergei Piletsky’s research team, including Antonio Guerreiro.

Since its establishment in 2015, MIP Diagnostics has raised over £7m of investment, including a £5m round in July 2020, to expand commercial operations and production, accelerating growth within the IVD sector. The co-investment has come from Mercia Asset Management, a founding investor and the largest shareholder in the company and was led by Downing Ventures (£1.4m), BGF (£2m) and Calculus Capital.

Find out more on the MIP Diagnostics website.

Spun out by Cranfield University PhD student Siobhan Gardiner and MSc students Edward Anastassacos and Robin Gojon in 2016, HEROTECH8 delivers connected drone-in-a-box technology to support round-the-clock automated drone operations. The solution enables industry to automatically deploy, recover and recharge drones without the need for an operator on site. The company has successfully raised funds from Australian fund Artesian Capital, Netherlands VC Vinci, and participated in the Brinc and Berkeley Skydeck accelerators. It is currently in a revenue stage and is raising a large Series A injection. HEROTECH8 has six full-time staff and is poised for rapid growth in the next two years.

The company is based in Cranfield’s incubator, Cranfield Eagle Lab.

Find out more on the HEROTECH8 website.

CorrosionRADAR (CR) designs and supplies long-range corrosion under insulation (CUI) monitoring technology for pipelines, refineries and more. The patented system enables the move away from manual inspections to automated monitoring, and from reactive to predictive corrosion management.

The business was spun out in 2017 from Cranfield University by an international team of scientists and business professionals, including Dr Prafull Sharma (Cranfield PhD student) and Professor Hoi Yeung (Cranfield academic), who developed the original technology, COO Dr Mehrdad Silatani, and CEO Dr Chiraz Ennaceur. The company has offices in Future Business Centre, Cambridge and Cranfield University’s incubation facilities.

CR has secured four rounds of investment, totalling almost £4m, raised from Mercia Fund Managers, using the MEIF Proof of Concept & Early Stage Fund, the company Founders and Series A investment in 2021 from Saudi Aramco Energy Ventures (SAEV), secured in December 2020. The funding will enable CR to strengthen its operations and widen efforts to address corrosion under insulation (CUI) and other operational challenges through digitalisation. CR currently employs 12 people and is recruiting for growth.

Find out more on the CorrosionRADAR website.

Centillion Technology Ltd was established in 2017 to commercialise its patented platform technology that combines flow chemistry with the power of computing and precision engineering to develop and manufacture flow chemical production systems. Since then they have secured commercial development funding from an angel investor, and has developed initial solutions for production of algae, speciality chemicals and is exploring RNA synthesis.

The company is based in dedicated premises at Cranfield University, with development labs and a pilot production line.

Find out more on the Centillion Technology Ltd website.

CEO: Professor Harris Makatsoris
Contact: info@centillion-tech.com

WAAM3D Ltd was incorporated in 2018 to commercialise metal additive manufacturing technology – WAAM (Wire Based Additive Manufacturing) – developed at Cranfield University by a team led by Professor Stewart Williams (CTO), including Dr Filomeno Martina (CEO) and Dr Jialuo Ding (CPO). The company is now located at Integra Park, Linford Wood in Milton Keynes, having moved on from the Cranfield Eagle Lab incubator, with 15 employees. The company achieved first year sales of several million pounds, and will launch its initial product to the wider market in mid-2021, with production, research and demonstration systems based in Milton Keynes.

In December 2019 Series A investment was received from Accuron Technologies Ltd, an international engineering and technology group headquartered in Singapore.

Find out more on the WAAM3D Ltd website.

Academic contacts: Professor Stewart Williams and Dr Jialuo Ding.

Nova Scientia Ltd was incorporated in March 2020. Founded as a high-tech and innovative company by Mr Clive Candler, an ex-Mercedes Grand Prix executive, it has secured substantial initial investment and licensed a technology portfolio from Cranfield based on laser and range resolved interferometry and pushes fibre optic measurements to sub-nanostrain performances at MHz bandwidth. The company is based at Harwell Campus, south of Oxford with a technical team of 18 staff and its initial product will be ready for market launch in mid 2021, building on proprietary and fully patented interferometric technology.

Find out more on the Nova Scientia Ltd website.

Lead academics: Professor Ralph Tatam, Dr Thomas Kissinger, Dr Steve James.