Northern Gritstone is an independent investment company founded in 2020 by the Universities of Manchester, Leeds, and Sheffield. The firm focuses on supporting science and technology businesses emerging from the North of England's world-class science and innovation hubs. Northern Gritstone aims to combine strong financial returns with a positive societal impact, particularly through the creation of high-skilled jobs in the region. Their investment philosophy is centered around "profit with purpose," emphasizing both commercial success and wider societal benefits.
Northern Gritstone invests primarily in three sectors: life sciences, deep tech, and health tech. The firm targets companies from pre-seed through Series B and beyond, with a particular focus on academic spinouts and innovative ventures from northern UK universities. Their portfolio includes companies working in advanced materials, energy, health technology, cognitive computation, and robotics software, among other sectors.
In November 2023, Northern Gritstone closed a fund with £312 million ($400 million) in capital commitments, including over £150 million from local and regional pension funds in northern England. The firm has the potential to raise up to £500 million through additional structures. This fund supports their mission to fill the venture capital gap for northern UK spinouts, which are often overlooked by investors focused on London and the "Golden Triangle."
Leadership
Northern Gritstone is chaired by Lord Jim O’Neill. The company has expanded its team with new roles such as Talent Director and Innovation Relationship Manager to provide support to portfolio companies beyond just capital investment.
Investment Strategy
Northern Gritstone’s strategy focuses on long-term value creation through active partnership with investee companies. They implement clear value creation plans with defined milestones and valuation inflection points. In addition to capital, the firm provides "NG Innovation Services," which include domain-specific accelerator programs (NG Studios), access to a talent community, and business services support to maximize the chances of success for early-stage companies.
Notable Investments
Northern Gritstone's portfolio includes companies such as Iceotope, which specializes in precision immersion cooling for data centers; Floreon, which produces bioplastics from crops; and BOW (Bettering Our Worlds), a robotics software platform.
Notable Exits
No specific exit information is publicly available as of the latest reports.
