TLDR:
- European universities have more investment funds for spinouts compared to US universities.
- European institutions spun out 677 companies in 2021, while US universities created 996 spinouts in the same year.
In a recent study, it was found that Europe is slightly ahead of the US in terms of having investment funds for university spinouts. More than 40% of Europe’s top universities have a venture fund to invest in their spinouts, while in the US, only 34% of research-intensive universities have such a fund. The University of Oxford stands out with the world’s largest university venture fund, amounting to over £850m. European institutions spun out 677 companies in 2021, slightly lower than the 996 spinouts from US universities in the same year.
While the number of funds is the same in both regions, European funds often cover multiple universities, unlike their US counterparts, which usually cover only one institution. Multi-university venture funds are more common in Europe, with examples like the Atlantic Bridge-managed University Bridge Fund covering universities from different countries. These multi-university funds aim to support a wider geographic area of innovators and entrepreneurs.
Some European countries, such as Belgium and the Czech Republic, have specific funds focused on biotech innovations. The Netherlands also has a €28.8m early-stage investment fund supported by several universities. These funds not only provide financial support but also offer additional programs and resources to stimulate the creation and growth of spinouts.
Moreover, Europe is seeing a trend where university spinouts are partnering with external VC investors to raise more funds for scaling up their businesses. This approach follows the US model where spinouts have access to larger pools of capital for exponential growth. By learning from successful US models and adapting them to European ecosystems, universities are aiming to create a more robust environment for innovation and entrepreneurship.
