“Everyone agrees – unlocking research potential benefits both society and the economy. But making it work? That’s the hard part. Spinout creation is deeply influenced by regional traditions, policymaker sentiment, and ecosystem maturity.
In Europe, spinouts have traditionally been shaped by academic frameworks first, with economic value creation often as a secondary concern and not too systematic and respected. However, in 2023-2024, we’ve seen a major shift. Countries like the Netherlands, UK, and Switzerland are leading the way, and similar discussions are taking off in Denmark, Sweden, and Estonia. Investment principles are becoming more aligned, deep-tech investors are getting better at helping spinouts mitigate their specific risks, and universities are opening up to new models of collaboration.
Why Invest in Spinouts?
Deep Tech, Long-Term Edge – Spinouts drive cutting-edge innovation in fields like synthetic biology, advanced materials, and health. With AI accelerating discovery and IP strategies in place, these companies continuously refine and evolve their solutions.
Strategic Capital Access – Unlike typical startups reliant on angel syndicates and early-stage VCs, spinouts benefit from university funds, specialised deep-tech investors, and grants—ensuring structured capital and sustained R&D partnerships, with shared goals.
Lower Competition, Higher Impact – While traditional startups fight for market share, spinouts redefine markets entirely or create radically more effective solutions, offering first-mover advantages.
Faster, High-Value Exits – Many spinouts attract early corporate buyouts, providing liquidity well before full commercialization.
Spinouts vs. Traditional Startups
Traditional startups prioritise speed and scalability in competitive sectors like fintech or consumer tech. While they can deliver quick returns, they also face higher failure rates. Spinouts, in contrast, demand more upfront R&D but offer stronger barriers to entry, long-term value, and strategic acquisition opportunities.
The Verdict
Investing in spinouts isn’t just about returns – it’s about backing the future. For investors with a long-term vision, a spinout investment portfolio presents a separate asset class and a chance to take an active role in the next wave of deep-tech innovation.
And no surprise – we are seeing more evidence every day of how AI tools enable accelerated tech development cycles and dramatically cut R&D costs. Our first 15 investments are in motion – now we’re gearing up for the next 15.
Written by Mart Maasik
Nordic Science Investments
mart.maasik@nordscience.com
