The new funding aims to make innovative ideas a reality through collaborations between academics and external organisations.
It's part of the Impact Acceleration Account (IAA), awarded by the Engineering and Physical Sciences Research Council (EPSRC).
Almost 50 new projects at the University have been supported since the first funding round in November 2012, including the creation of four new companies.
An extension to the scheme, including a further £1.4 million funding injection, has just been announced and will be available from October 2015 to March 2017, with up to £50,000 available for each project.
Partnerships to date have included working with the BBC and ARRI, the largest manufacturer of motion picture film equipment in the world, to make video images appear more lifelike; with Rolls Royce on modelling stress in composites materials; with Arup on Future Cities; and with the National Composites Centre on advances in structural composites.
Other successful collaborations and innovations developed with smaller companies have included working with ET Enterprises to develop new sensors and Portishead-based BIRAL on a device to isolate and analyse airborne particles.
Bristol University is encouraging businesses to approach its Research and Enterprise Department (RED) with ideas which might benefit from academic input and expertise.
Dr Andrew Wray, Knowledge Exchange Development Manager in RED, said: "The projects supported through the University's Impact Acceleration Account involve a wide range of businesses and public bodies, small and large.
"Many of them have involved secondments into the University and from the University out to the organisation, enabling people to work together to solve real-life industry problems and commercialise research."
Partners may include businesses, public sector bodies or NGOs, in the UK or internationally.
Projects can involve prototype commercialisation, strategic engagements with industry, collaborations for doctoral students and business fellowships.
The scheme was introduced by the EPSRC to help the UK's most pioneering scientists and engineers create successful businesses from their research, improve industrial collaboration and foster greater entrepreneurship.
A total of £30 million is being given to 33 universities across the country this year. This builds on the £60 million allocated in 2012, which gave awards ranging from £600,000 to £6 million to 31 universities across the UK.
Businesses interested in working with the University should contact Frances Frith, Lucy Stephens or Andrew Wray in the University's Research and Enterprise Development team: frances.frith@bristol.ac.uk, lucy.stephens@bristol.ac.uk and Andrew.wray@bristol.ac.uk.