Sport England has launched the new £10m Active Universities funding round - the third of the organisation's themed rounds - in a bid to boost the number of students playing sport.

According to the findings of the organisation's Active People Survey 3, less than three in 10 university students currently play sport on a regular basis and it is hoped the new funding round will increase the number by 100,000. It is hoped that targeting the student population will help Sport England work towards its target of getting 1 million more people playing sport by the London 2012 Olympics, with its research showing those who participate at university are more likely to continue doing so after graduating.

The funding agency is inviting applications from universities to fund schemes that address a number of issues, including a lack of coaches to increase and sustain participation; over-structured and inflexible provision for all students and capacity issues at institutions lacking facilities. Sport England chief executive Jennie Price said: "We know that young adults who are playing sport regularly by the time they leave university are likely to stick with it for the rest of their lives.

"There's already a strong tradition of competitive sport within universities, but this is a big opportunity to increase participation through more informal and social formats." Culture secretary Ben Bradshaw added: "We want to encourage young people to play sport for life, not give up on it the minute they leave school. This fantastic investment will inspire thousands up and down the country to keep playing and help thousands more discover a new found passion for sport."