In this article, Parkwalk’s Chief Executive Officer, Moray Wright, and Chief Investment Officer John Pearson, explain why they think that the university spinout sector should be a key part of your client’s EIS portfolio.
As the UK’s leading Enterprise Investment Scheme (EIS) fund manager, Parkwalk has consistently demonstrated the immense potential of university spinout investments. For five of the past six tax years, we’ve raised the largest growth EIS fund in the industry, reflecting strong investor confidence in our approach to backing innovative technology companies emerging from Britain’s premier academic institutions.
Since its inception in 2009, Parkwalk has invested in over 180 businesses in the university spinout sector, backing the brightest minds from the Universities of Oxford, Cambridge, Leeds, Southampton, Imperial College London and more.
AT PARKWALK, WE UNDERSTAND THE TRANSFORMATIVE POTENTIAL OF DEEPTECH INNOVATIONS BORN FROM THE UK’S WORLD-CLASS UNIVERSITY RESEARCH.
That’s why we partner with the boldest, most visionary university spinouts, providing the funding, expertise, and networks they need to thrive. As a leading EIS fund manager, we invest in tax-efficient opportunities to support these groundbreaking ventures.
Our approach drives economic growth and improves lives worldwide. It aims to generate significant returns for our investors, UK plc, and broader society. Together, with our parent company IP Group, we unlock the power of UK university research to create a future shaped by the profound impact of deeptech innovation.
Why university spinouts, why now?
The current market environment actually offers several key advantages that make university spinouts particularly attractive investment opportunities:
First, these companies focus on fundamental technological breakthroughs, making them more resistant to economic cycles than traditional businesses. Their innovations address core challenges across sectors, from healthcare to materials, semiconductors, AI, quantum and climate technology, regardless of market conditions.
Second, strong intellectual property protection provides robust defensive moats. University spinouts typically emerge with well-protected IP portfolios, creating significant barriers to entry and maintaining competitive advantages.
Third, continued government support through research grants and innovation initiatives provides additional funding streams and validation, reducing investor risk.
Finally, these companies offer multiple potential exit routes through trade sales, IPOs, or licensing deals, providing flexibility in realising returns.
Portfolio success stories
Our current portfolio showcases the breadth and depth of innovation we support:
- Oxa: This Oxford University spinout is establishing itself as a global leader in self-driving software and services to unlock the power of autonomy.
- Adsilico: A spinout from Leeds University, they’re revolutionising clinical trials through in-silico modelling for virtual patient populations.
- AccelerComm: A Southampton University venture with patented market-leading IP in 4G and 5G technologies, offering a high-performance wireless communications solution.
- MindFoundry: An Oxford-based company deploying responsible AI solutions for high-stakes applications in complex industries such as defence, infrastructure and insurance.
Investment strategy and risk management
Early-stage EIS investing is inherently risky, but we believe with our diversified investment strategy across eight plus companies, depending on which EIS fund you choose, you are reducing risk in the portfolio. We aim to diversify investor portfolios across deeptech and science sectors from AI to agtech, quantum computing to life sciences, future mobility to cleantech, from Series A through to Series C. For example, our investors at Parkwalk get access to investments in the latest Quantum Computing companies coming out of Cambridge University, alongside institutional investors – not to mention the added EIS tax reliefs that our investors receive.
We are known in the market for our consistent performance, having delivered over £150 million cash returns to our EIS investors across 60 exits (positive and negative), as at January 2025. When looking at performance of EIS funds, we believe it is key to look at the exit data and quantum of cash returned to investors as well as the overall portfolio valuations – a key ask for any venture capital investor, regardless of any available individual tax reliefs.
Parkwalk names as ‘The most active investor in University spinouts’
Our position as the market leader was recently reinforced in our annual report with Beauhurst, which named Parkwalk as ‘the most active investor in UK university spinouts.’ The report, published in September 2024 and featured in The Times, highlights the sector’s resilience and recovery, particularly in critical areas such as AI, Life Sciences, and Cleantech.
Investment opportunities
For advisers and investors looking to access this sector, we currently offer several options:
- The Knowledge Intensive EIS Fund IV (open until March 28, 2025).
- The Opportunities EIS Fund (our evergreen fund).
- University-specific early-stage funds for Cambridge, Oxford, Bristol, and Imperial College.
With a seasoned investment team that has worked together for over a decade, we offer unparelled expertise in university spinout investing. Our track record of consistent performance, combined with EIS tax benefits, presents a compelling proposition for investors seeking growth opportunities in the UK’s innovation economy.
Risk Warning:
This is a high risk investment and capital is at risk. Past performance is no guide to future performance. Tax reliefs dependent on individual investor circumstances. Parkwalk Advisors Limited is authorised and regulated by the Financial Conduct Authority (FRN: 502237). This financial promotion was approved on 7/1/2025
Moray Wright, Chief Executive Officer
Prior to co-founding Parkwalk, Moray spent over 20 years working for Hoare Govett, JP Morgan, Lazard and Mirabaud. Moray has a wealth of experience with corporate and financial institutions. He sits on the boards of several Parkwalk portfolio companies including Oxa, PervasID and Cambridge Touch and was formerly on the boards of Perpetuum (sold to Hitachi Rail), Fuel3D and Tangentix.
John Pearson, Chief Investment Officer
John was appointed Parkwalk’s Chief Investment Officer in 2024. At Parkwalk, he has led successful exits of portfolio companies to Microsoft, Apple and other international acquirers and currently sits on the board of Cambridge GaN Devices, Crypto Quantique, Accelercomm and OW Smell Digital. Before joining Parkwalk in 2018, John was a Partner at Adelphi Capital LLP, a London- based fundamental long-short European equity hedge fund.
