The Chief Business Commentator at the FT, Brooke Masters, has an excellent article in the FT on what we can learn from Cambridge’s pandemic-fuelled tech success.
With a record £1bn raised in the past 12 months, Cambridge is flourishing. So what are the lessons?
First, success has been a long time in the making, with Masters tracing it back to the decision in 1970 to set up the first UK science park there, and of course we could go back even further, to the founding of the university in 1209. Whatever the key date, the obvious lesson for politicians is to think long term, beyond the election cycle.
Second, according to Masters a liberal approach to foreign ownership has helped. Even after selling, entrepreneurs have stayed in Cambridge to start, advise and invest in new companies. This is a very timely observation. As discussed in our Conflicting Missions report (and in more detail in a forthcoming report), the remit of the UK’s new Digital Markets Unit risks severely hampering the ability of founders to sell their businesses, and so reinvest their time, expertise and money back into the innovation ecosystem.
Third, Masters lauds the role of Cambridge Enterprise, linking through to this Air Street Capital article that champions the practice for student researchers to own the rights to their IP: “If they wish to patent their inventions and start a business based on this IP, they must license it from the University for a fee. However, the University is not automatically granted shares in the spinout. Instead, the University and Cambridge Enterprise (its TTO) manage an investment fund that spinout founders may pitch to raise capital in exchange for shares.” Again, watch this space for a report on how to reform TTOs.
But while Cambridge has become “a safe place to do risky things”, there are headwinds. Masters emphasises the cost of good housing and the complexity of planning rules as critical to keeping Cambridge’s entrepreneurial ecosystem competitive: “the UK needs to act now or risk strangling the Silicon Fen just as it comes into its own.” (In this respect it’s not so different to Silicon Valley.) New neighbourhoods like Eddington are all to the good, but I think the killer policy would be introducing Street Votes, allowing homeowners to vote on upgrading their streets while making them more beautiful in the process (which seems particularly relevant for Cambridge).
However, not everywhere in the UK has a world-class university an hour from a metropolis in which to build an entrepreneurial ecosystem. But that doesn’t mean one can’t be developed – it will just be at a different scale and not look much like Cambridge. The town of Boulder, Colorado is the oft-cited example of what can be built in seemingly unlikely locations.
That’s why we’re in the process of planning a virtual event with Robin Millar, MP for Aberconwy, in which experts, entrepreneurs, or anyone with a well-evidenced idea can pitch to Millar and the council on how to make Llandudno – the so-called “queen of the Welsh Resorts” – more entrepreneurial.
Nobody is expecting a Silicon Valley, Fen, or Roundabout, overnight – or at all. But we think that with the right policies for a town, city or region, a real difference can be made at the margin. If you have an idea you would like to pitch, drop me an email. And if you’re an MP who wants to do something similar, also get in touch.
Digit-all
Our good friends at Coadec are campaigning to expand the Help to Grow: Digital scheme. Coadec is concerned that the scheme might not reach its full potential – and we agree.
The scheme incentivises small businesses to use productivity-enhancing software. But as it’s currently designed, small businesses must have at least 5 employees to be eligible and businesses can only access limited types of software.
Software is limited to CRM, accounting and e-commerce, but Coadec thinks it should be widened to include additional software like cloud compute, ERP, project management tools, payments software, and HR software.
Coadec wants the support of companies that would currently fall through the cracks. So if you’re involved in a business with fewer than 5 employees (not sole traders), a business that would benefit from access to software not currently in scope, or a business that could offer software not currently in scope, get in touch with Charlie from Coadec to see how you can get involved in the campaign.
Going Green
I’ll have more information next week, but I’m delighted to announce that we will be kicking off a new Forum: the Green Entrepreneurship Forum. It is supported by our long-time partners, Mishcon de Reya, and will be built around virtual roundtables with the founders of some of the UK’s most ambitious green businesses. If you are the founder of one of these businesses, or want to nominate someone who is, get in touch with Katrina Sale.
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