Senior figures from across industry, academia, investment and government met yesterday (Thursday 26 March 2026) at the House of Lords, for a roundtable hosted by The Lord Ranger of Northwood, to discuss the findings of a new report commissioned by Pioneer Group and The Crown Estate, and authored by Henham Strategy.
The new report Beyond the Capital Gap: How do we develop an operational blueprint to capitalise on UK science, shares findings from the second phase of Pioneer Group’s landmark research report examining how the UK can better convert its world leading science into globally competitive companies, and reveals that while fresh investment is critical, capital alone will not solve the UK’s commercialisation challenge. The findings present a clear call for government, academia and industry to work together to strengthen the broader ecosystem required for scientific innovation to become commercially successful.
Phase One of the research, which published last year, demonstrated the significant economic potential of addressing the UK’s early-stage capital constraints, finding that increased investment could unlock more than 1,700 additional spinouts, create 56,000 high-quality jobs, and generate up to £27 billion in co-investment.
Phase Two of the research now warns that, without strengthening the infrastructure surrounding this investment, the UK risks “unlocking capital into a system ill equipped to absorb it”.
The roundtable discussion explored the practical steps required to strengthen the UK’s commercialisation infrastructure, and centred on three interdependent enablers that repeatedly hold back promising ventures:
- Venture building – a severe inconsistency in support for founders, from market validation to investor readiness.
- Real estate and critical equipment – an acute shortage of flexible, specialist laboratory and technical space, particularly outside the Golden Triangle of London, Oxford and Cambridge.
- Talent and skills – widening gaps across technical, engineering, analytical and commercial leadership roles that are essential for scaling science-based companies.
Recent findings from the House of Lords Science and Technology Committee, the House of Commons Science, Innovation and Technology Committee and UKRI echo these concerns, describing a “national growth emergency” driven by long‑standing structural weaknesses in commercialisation.
Toby Reid, Executive Director at Pioneer Group, said: “The UK’s scientific excellence is unquestionable. The challenge now is turning that excellence into impact consistently over time across the UK. Phase Two makes clear that unless we strengthen the infrastructure around talent, lab space and venture support, we will continue to lose ground to faster‑moving global competitors. This is the moment for the UK to shift from analysis to coordinated action.”
To provide long-needed clarity on the stages of scientific commercialisation, the report introduces a nine-stage UK commercialisation taxonomy linking Technology Readiness Levels (TRLs) to specific organisational, spatial and capital needs. For the first time, policymakers, investors and universities share a common framework for when different types of intervention matter most.
Nick King, Founder and CEO of Henham Strategy, said: “The UK’s research base is world class, but too often we fall short on turning breakthroughs into scalable companies. Beyond the Capital Gap: How do we develop an operational blueprint to capitalise on UK science is a call to action – aligning venture building, specialist infrastructure and skills with investment so innovation can thrive across every region.”
The report invites stakeholders across industry, academia and government to contribute insight as the project moves towards Phase Three, with the aim of creating a practical, operational blueprint for national action.
The roundtable discussion at the House of Lords was heavily centred around the challenges spin-outs and early-stage companies face when trying to raise much needed funds.
Tiffany Thorn, CEO of BiVictriX Therapeutics, a biotech developing novel bi-specific antibody drug conjugate therapies for oncology, shared her own experiences in raising funds: “We managed to raise a small amount of initial seed investment, which allowed us to prove that we could build the molecules and the technology. We were able to meet our milestones and achieve early proof of concept, positioning us to raise the larger capital required to scale the business and maintain a global competitive edge. However, the limitations of seed-stage fund sizes meant our initial investors were unable to support the next phase of growth, forcing us to seek alternative sources of capital.
“This process took considerable time, slowing momentum at a critical stage. It also resulted in smaller, incremental funding rounds rather than the step-change investment needed. For companies like ours, this creates a fundamental challenge. Without access to the right quantum of capital at the right time, it becomes difficult to build the team required for scale, ultimately delaying progress and weakening competitive positioning.”
Coulter Partners’ Founder and Executive Chair, Bianca Coulter, explained that it is often difficult to attract C-Suite candidates to the UK: “We see that the challenges in raising money here beyond early stages, along with the perception that funding is drip fed and CEOs spend a disproportionate percentage of their time raising it, as well as the differentials on tax, remuneration and equity levels, deter experienced CEOs from coming to the UK from the US. For sustainable biotech company growth, we need to see trusted, experienced leadership teams attracting significant investment, succeeding in building substantial companies and therefore generating a broader supply of expert leadership for our ecosystem.”
Harry Destecroix MBE, Founder of Science Creates in Bristol, echoed these challenges: “Founders end up not running the business, as they are constantly fundraising.”
Discussions expanded into the need for more focus on creating clusters, engaging with local government and mayoral authorities.
Oliver Smith, Executive Director for Investment and Operations at The Crown Estate, said: “While the UK’s undeniable strength in science is a source of great pride, we must realise that turning ground-breaking research into world-leading companies requires more than capital alone. Success depends on strong, connected ecosystems which bring together investors, universities, innovators, developers and government around a shared mission – a blueprint that is clearly evidenced in this report.
“Alongside £1.5bn of investment over the next 15 years, The Crown Estate is committed to bringing together partners across the country to help align long-term investment with the places, infrastructure and talent needed for science and innovation to thrive. By working collaboratively, we can unlock the full potential of UK science and ensure its benefits are felt across the country for generations to come.”
Pioneer Group and The Crown Estate will continue to engage policymakers and sector leaders over the coming months to develop actionable recommendations to strengthen the UK’s innovation economy for the long term.
Toby adds: “The UK is aligned in diagnosing the problem. Now is the moment to design the solution together. Unlocking the full commercial potential of British science will require strategic and equitable investment not only in capital, but in the environments, capabilities and leadership that allow innovation to scale. We are now actively seeking input from across the commercialisation landscape to inform a more coherent and ambitious national approach.”
Share your perspective by submitting your response to beyondthecapitalgap@henhamstrategy.co.uk.
