Cambridge as a Climate Technology Start-up Hub

“Half the technologies we are going to need if we are to meet our net-zero goals are still in the lab,” says Chris Gibbs, the Investment Director at Cambridge Enterprise Ventures. Many of these breakthroughs will be made in Cambridge, which has been ranked as the world’s leading science and technology cluster by density for the third year in a row. A considerable portion of Cambridge’s $191 billion tech ecosystem is devoted to climate technology, with new start-ups and university spin-outs receiving considerable funding each year to commercialise their inventions. Given Cambridge’s entrepreneurs were not born in Cambridge and are from all over the world, the question arises: Why Cambridge?

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Cambridge University was founded in 1209, and while it was originally established to provide young monks with a grounding in law and theology, it has endured to become a globally recognised institution for scientific research. The university that produced Newton, Hawking, and 125 Nobel prizes now yields start-ups in the form of research group spin-outs. A spin-out company is born when a group of academics decide to commercialise their research while licensing their intellectual property (IP) and seeking investment. Cambridge Enterprise, a university-affiliated organisation, offers IP licensing services, helping inventors to patent their research in return for a share of the new company’s revenue. Entrepreneurship is a way of life at Cambridge, with competitions such as the Churchill College Enterprise Competition and Downing Enterprise awarding ambitious students with funding for their ideas.

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Early-stage investment is referred to as ‘pre-seed’ and is crucial for enabling a founder to develop their business concept. Angel investors will invest small sums for a significant stake in recognition of the risk that they are taking. Many spin-out groups will seek ‘seed’ funding to scale their team and increase research and development. The FOUNDERS Start program guarantees Cambridge alumni £40k of pre-seed funding, with the potential for a further £80k after a 12-week course. The scheme also provides lab and office space with access to a network of investors and founders. Additionally, Cambridge Enterprise Ventures invests university seed capital into Cambridge University spin-outs to enable entrepreneurial academics and students, including investments of over £7m in net-zero technology.

The Cambridge Science Park was founded by Trinity College over 50 years ago and is now home to over 100 technology companies. Nyobolt, a battery technology company, and Origami, a battery management platform developer, are examples of climate-tech firms that have made this park their home. Connectivity is crucial for start-ups, with Cambridge North Station opening in 2017, providing frequent train service to London King’s Cross and Stansted Airport. London is a major financial hub home to numerous venture capital and growth equity firms, providing start-ups in Cambridge with access to crucial finance at each stage of investment. Furthermore, the compact nature of Cambridge encourages networking with frequent opportunities for interactions between founders and investors.

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I spoke to Dr Guy Newcombe, the CEO and Founder of Archipelago Technology, to quiz him about the allure of Cambridge for climate-tech innovators. Archipelago’s home is the St John’s Innovation Centre (SJIC), a hatching site for early-stage companies that will, in time, migrate across Milton Road to the Science Park. Guy reinforced the notion that Cambridge is a “technology village” where “everyone is connected”. During his time at Archipelago, there were frequent networking sessions at SJIC, providing opportunities for interactions with investors from as far away as Brazil and China. Guy acknowledged that life is simpler in Cambridge, with many entrepreneurs living in smaller houses and commuting by bike or on foot. Perhaps this is an allusion to Steve Jobs’ notoriously simple wardrobe – innovators prefer to dedicate their bandwidth to their work. Finally, Guy recognised that many of his fellow entrepreneurs graduated from university in the early 1980s when Prime Minister Margaret Thatcher was infamously anti-Higher Education. Therefore, instead of pursuing academia, these individuals went into the technology business and are now innovating after long stints at larger firms.

Illumion is the embodiment of the Cambridge story. A spin-out of Cambridge University that has just received £2.1 million in seed investment. Illumion is team of physicists and chemists have developed cutting-edge battery monitoring technology that will allow battery developers to accelerate their research and development phase. Charge photometry technology allows for greater insights into how battery materials behave during charge and discharge cycles, enabling developers to pinpoint where performance is lost. With this investment, Illumion can expand its research team and lab space while it determines its commercial strategy.

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Cambridge University is a vital cornerstone of what makes Cambridge so special. It provides unfettered access to human capital, with the most talented students in the world congregating to receive a world-class education. Many of these students stay on to contribute to the ecosystem of start-ups that emerge from the university, facilitated by university-affiliated programs and capital. Excellent transport connections and access to office and lab space enable start-ups to attract further investment and introduce their technology to the market. As the demand for climate-tech solutions grows, Cambridge will continue to be a hub for entrepreneurs and researchers, driving the transition to a sustainable future.