South Yorkshire’s Spinout Success: Game-changing Innovation

South Yorkshire’s tech ecosystem is accelerating at an unprecedented pace, and spinouts from the University of Sheffield are at the heart of this transformation. Our latest TECH SY Spinout Spotlight reveals how these innovation-driven businesses are shaping the region’s future.

Record Spinouts Growth and Impact

• Since 2020, 35 spinouts have launched from the University of Sheffield, with 80% choosing to stay local.

• These spinouts have raised £100m in VC investment and contribute £487m+ in value - over 15% of the region’s total ecosystem.

• Tech startups in South Yorkshire now boast a combined value of £3.2bn, employing 18,000+ people.

According to the Royal Academy of Engineering’s 2025 report, University spinouts represent 34% of UK deep tech companies, generating 37% of enterprise value. In South Yorkshire, the reliance is even greater: 53% of deep tech companies are spinouts, driving 69% of ecosystem value. This demonstrates our region’s ability to turn scientific excellence into scalable, high-impact businesses.

Connections between innovators, funding, customers and talent are improving all the time. As of October 2025, we’ve seen a record year for Series A investment alongside strong seed and pre-seed rounds.

Scaling South Yorkshire Startups 

To continue this trajectory, we need more Series B investment and a clear pathway for companies to scale. Our Tech Summit and Dealroom.co report in January 2026 will explore this challenge in depth. TECH SY and ecosystem partners are already strengthening relationships with capital providers, government and the private sector to unlock more potential.

South Yorkshire has been represented twice at the London Stock Exchange in recent months, proof that listing is now a real consideration for scaling companies. Our networks beyond the region are strong too, with nine companies (including six spinouts) heading to Manchester in January for an early-stage investor exchange thanks to Bruntwood SciTech.

Andy Hogben - Head of Commercialisation at The University of Sheffield says:

"The South Yorkshire startup ecosystem is undergoing significant acceleration. We are currently seeing a surge in new companies that are securing investment on their road to creating economic value. The University of Sheffield is committed to supporting spinout founders through our Commercialisation Journey and will continue to improve the ecosystem for them to launch their technology-rich businesses."

Innovators like Rob Ward (DigitalCNC) and Ben White (Phlux Technology) are building world-class teams, attracting international customers, and proving South Yorkshire is a brilliant place to start and scale deep tech businesses.

Read the full TECH SY Spinout Spotlight report.