The University of Manchester is launching a £10m Founders Fund to provide crucial pre-seed investment for the next generation of entrepreneurs with an initial £3m already secured. The Fund will be managed by Unit M, the University's innovation directorate, in partnership with the Innovation Factory, the University's tech transfer office.
The University has set an initial goal of raising £10 million for the Fund, predominantly through philanthropic support.
So far, the Founders Fund has received a £2m commitment from the University and a £1m philanthropic gift from alumnus and technology entrepreneur Kevin Lomax.
The announcement marks the beginning of a week-long programme of activity across the University's inaugural Innovation Festival.
The Founders Fund will address a critical funding gap facing students, staff, and alumni entrepreneurs as they turn ideas into viable businesses. Alongside investment, founders will be connected to Unit M's wider innovation ecosystem, giving them access to support, expertise, and networks as they launch and grow their ventures. As ventures develop, they will be better positioned to attract further private investment, including potential seed-stage backing from investors such as Northern Gritstone.
It will provide founder-friendly equity investment to high-potential start up and spin out ventures affiliated with the University, helping entrepreneurs launch and grow ambitious companies, attract follow-on private investment, and retain entrepreneurial talent within the region.
The Fund is part of Challenge Accepted, the University's ambitious initiative bringing together it's global community to tackle major challenges, unlock new ideas and turn innovation into positive impact.
Returns from successful investment will be reinvested in future ventures, helping to support successive generations of university entrepreneurs.
Over time, the Fund will contribute to the University's ambition to create Europe's most inclusive and impactful innovation ecosystem by 2035, while generating lasting financial, economic, and reputational value for the University and the region.
Professor Aline Miller, Associate Vice President (Enterprise) and CSO, Unit M at The University of Manchester, said:
"I am incredibly excited to be launching the Founders Fund. It represents a strong commitment from the University to our innovation agenda and to backing talented students, colleagues and alumni who have the ambition to turn great ideas into high-growth ventures. I am looking forward to seeing the quality of ideas that come through the pipeline and helping more founders take their first steps towards impact."
Kevin Lomax, University of Manchester alumnus and entrepreneur said:
"The University of Manchester has fantastic technology, research, and graduates, as well as an incredible culture and environment. I want to see it become a real heartbeat of the UK. I hope the Founders Fund will help create a legacy, supporting entrepreneurs to turn their ideas into businesses, creating jobs, and helping drive economic growth."
Investments are expected to range from £25,000 to £250,000, typically in exchange for a small, non-controlling equity stake.
The inaugural call for applications is expected to open in January 2027.
