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By Sonya Rabbitte, 2 August 2001 18:43

NEWS The number of technology start-ups being spun out of university research projects in the UK has trebled since 1998, according to figures from venture capital firm Firststage Capital. In the past three years 310 business have been created at 37 UK universities, compared with 99 in the three years prior to that. Firststage Capital CEO Jason Purcell welcomed the efforts, claiming that start-up figures from UK universities are almost up to speed with the US. But he warned that both universities and venture capitalists need to improve their approach if spin-off UK projects are to match the commercial standards of their US counterparts. "It's important both sides meet half way on this. Universities could make the research more investment ready and VC friendly, and realise that not all projects are suitable business models. On the venture capitalists side it is important they recognise that academic research will sometime lack a proper business structure. It's not like the usual plans they look at," he said. The government is ploughing funds into the sector, with the University Challenge Seed fund providing £45m to 15 different universities since its inception in 1999. Another £15m funding is up for grabs in the next six months. Dr Richard Jennings, industrial Liasion officer with the technology transfer office at Cambridge University, agreed that the sector has grown dramatically in the past five years. Cambridge has rolled out about 35 spin-off businesses over the past decade and the university town has a venture capital value of around £500m. However, according to Jennings, the university technology transfer sector still suffers from an amateur image, making it difficult to attract the necessary talent. He said: "We need more investment in technology transfer offices. It is still seen as a cottage industry and we need to professionalise it across the board."