Universities have a vital role to play in helping the North East economy recover from the coronavirus pandemic.
The work being delivered by North East universities is supporting new and existing businesses to innovate and grow, and shaping and supporting a more sustainable and inclusive economy.
Durham University, Newcastle University, Northumbria University, University of Sunderland and Teesside University are all members of the North East COVID-19 Economic Response Group, which was established by the North East Local Enterprise Partnership at the beginning of the coronavirus pandemic to provide business resilience and ensure a collective response to the economic impact of COVID-19 on the North East economy.
Below is a case study about Newcastle University’s START UP offer, with a focus on the impact student and graduate businesses it supports are having within the region, and how they are responding to the COVID-19 crisis.
Newcastle University is ranked Top 5 in the UK for graduate entrepreneurship based on start-up turnover and investment raised. Based on average investment per start-up, the University is ranked Top 10 in the UK for scalable graduate start-ups and has generated the most investable graduate start-ups in the North East.
START UP is an equity-free support system for Newcastle University students and graduates up to three years and includes START UP Founderships, a pre-accelerator programme to ready the individual and their businesses for market entry, investment and success.
There are currently 203 START UP-supported businesses trading with a combined annual turnover of close to £60 million. Between them, they’ve raised over £19 million in external investment, won national and global awards and created 695 full-time equivalent jobs.
*All rankings and statistics from HE-BCI Survey 2018-19.
Over 70% of these businesses have remained in the North East, many of which recruit within the region, such as One Utility Bill, Nebula Labs and My Healthcare Recruit. Many the businesses are securing impressive investment figures.
In September 2020, Equiwatt raised over £300,000 to roll-out its innovative, energy-efficient app and create four new jobs in Newcastle. A month prior, Tea Ventures Ltd (NovelTea) welcomed 1,000 investors onboard as part of a crowdfund campaign that raised £577,000 to advance its plans to break into the US market, and in December, gained a further £1.4M investment for expansion and job creation.
Many of the START UP founders are persevering or finding ways to pivot despite challenges posed by the COVID-19 crisis. Some have received grant support through Newcastle University’s partnership with Santander Universities UK to help them survive and thrive in 2020, and others are applying to a newly launched fund of £40,000.
“Last year with Santander Universities, we launched a Covid-19 Fund to help our START UP community adapt in response to the global crisis, supporting some businesses to scale in order to meet new demand. This new Fund is about stimulating and supporting the next wave of entrepreneurs and changemakers who will have a critical role to play in our economic and social recovery” said Claire Adamson, START UP Manager, Newcastle University. “It is also about making visible and celebrating the individuals joining the growing community of Newcastle University students and graduates who have created their own graduate jobs as well as employment opportunities for others”, she added.
Santander Universities has been in partnership with Newcastle University since 2009 and has provided close to £1.7M to the University, with £189k appointed to enterprise activities.
Matt Hutnell, Director, Santander Universities, says: “Santander is committed to supporting higher education as well as local communities across the UK. We’re proud of our partnership with Newcastle University and we’re delighted to support their new Start Up Fund which will enable many more budding entrepreneurs to thrive, particularly during this challenging time.”
To find out more about START UP, visit www.ncl.ac.uk.
Click here to read more about how universities in the region are playing a central role in supporting the region to recover from the coronavirus pandemic.
Click here to read more about the North East COVID-19 Economic Response Group.