Northern Gritstone Sets Up San Francisco Base to Tap US Funding for Northern UK Spinouts

Northern Gritstone, the venture vehicle created to fund spinouts emerging from research at Leeds, Manchester and Sheffield universities, announced plans to establish a presence in San Francisco. The move is aimed at widening access to U.S. capital for its portfolio firms, even though the fund does not intend to make direct investments in the United States. ## Expanding the geographic reach Founded in 2021, Gritstone has raised £382 million and recently broadened its scope to include spinouts from the University of Liverpool. The new office, budgeted at roughly $1 million, will house a venture partner whose role is to open doors for the fund’s companies to U.S. investors, talent pools and business-development networks. The hiring effort was reported by *The Times*, which noted that the venture partner will act as a “key differentiator” for the portfolio, smoothing the transition to international markets. ## Rationale behind the U.S. foothold CEO Duncan Johnson explained that while the portfolio companies are firmly rooted in northern England, their growth ambitions are global. He argued that the United States offers deeper pools of capital and a higher risk appetite for technology ventures, which can accelerate scaling and improve eventual exit valuations. Johnson also highlighted a perceived discount on UK-based firms in the U.S. market, suggesting that a proactive presence in San Francisco could help bridge that gap and make it easier for American investors to discover and fund these companies. ## Portfolio snapshot Among the companies currently backed by Northern Gritstone are: - **Imperagen**, a spinout focused on enzyme engineering; - **Optalysys**, which develops photonics chips; - **Pragmatic Semiconductor**, a semiconductor scale-up. These firms illustrate the fund’s emphasis on deep-tech and advanced manufacturing sectors, areas where access to U.S. capital and expertise could be especially valuable. ## Next steps and industry reaction Northern Gritstone has not yet commented on the announcement beyond the details provided to *The Times*. Sifted reached out for additional remarks but did not receive a response at the time of publication. The establishment of a San Francisco office signals a growing trend among UK-based investors to seek transatlantic connections, aiming to leverage the United States’ robust venture ecosystem while maintaining a focus on home-grown innovation. The initiative underscores the strategic importance of bridging regional research strengths with global financing channels, a model that could shape how university spinouts scale in the coming years.