Engineering and Physical Sciences Research Council (EPSRC) investments are turning the UK’s scientific strength into globally competitive businesses.
As of July 2026, the EPSRC research base had generated at least 1,900 direct spin-outs, with 1,041 still active. Together they are valued at least £14 billion, generate over £8 billion in annual turnover, employ more than 30,700 people and have raised over £9 billion in investment. This portfolio includes a growing group of so-called ‘unicorns’, start-ups valued over $1 billion, and ‘soonicorns’, which are approaching that threshold.
More widely, EPSRC’s investments are driving the growth of new technology companies through three linked routes. While some companies are direct spin-outs, others are founded by talent developed through our doctoral and fellowship programmes. Many benefit from EPSRC’s collaborative research and development programmes and long-term partnerships between research and industry. In total, investments made through EPSRC have played a key role in the formation, development and growth of at least 24 currently-active UK unicorns.
Turning breakthrough research into billion-pound businesses
The most direct pathway is the conversion of EPSRC-funded research into intellectual property, products and high-growth businesses. EPSRC investment supports the commercialisation of deep-tech research, creating companies that attract investment, generating skilled jobs and anchoring strategically important capabilities in the UK.
Oxford Nanopore Technologies shows the scale of commercial success. Built on long-term nanotechnology research, it is now a global DNA and Ribonucleic Acid sequencing leader, employing more than 1,300 people, generating over £220 million in annual turnover and valued more than £1 billion.
The unicorn spin-out pipeline is also demonstrated by Nyobolt, which achieved that status by commercialising advanced battery technology from EPSRC-supported University of Cambridge research. In quantum, Oxford Ionics exceeded a $1 billion valuation following its acquisition by IonQ in 2025, while Oxford Quantum Circuits has been valued at $855 million to $1.3 billion following major international investment.
Soonicorns taking shape
The next wave of businesses rapidly approaching unicorn status is already visible. Nexeon is producing smaller, higher-energy batteries, Pragmatic Semiconductor is pioneering flexible electronics and Oxa emerged from EPSRC-funded robotics research at the University of Oxford.
Ceres Power and ITM Power show how UK Research and Innovation’s sustained support, through both EPSRC and Innovate UK, is also building UK leadership in hydrogen and clean energy technologies.
The talent and partnerships multiplying impact
Spin-outs of university intellectual property are only one part of the story. Our investment also supports the people, ideas, infrastructure and networks from which fast-growing technology businesses emerge.
Faculty, CuspAI and Thought Machine draw on the expertise and capabilities of founders whose research careers included EPSRC support. While Wayve and Raspberry Pi emerged from university research communities sustained by long-term investment in research and skills. These examples show why talent is an economic asset, with researchers bringing frontier knowledge into new ventures, markets and sectors.
EPSRC also increases the opportunity and capacity for businesses to innovate through partnerships. ARM, Ocado, Skyscanner, Arqit and CMR Surgical have participated in EPSRC-supported research collaborations, gaining access to cutting-edge knowledge and technologies.
This wider pathway to impact is often less visible in policy discussions but may represent one of the most significant ways in which public investment in research drives long-term economic growth.
What’s next?
EPSRC is not only helping create today’s unicorns; it is building a national platform from which future deep-tech firms can scale. World-leading research generates investable ideas, skilled people turn them into businesses, infrastructure and partnerships accelerate commercialisation. The result is a stronger pipeline of unicorns and soonicorns, high-value employment and greater UK competitiveness.