TNO (Netherlands Organisation for Applied Scientific Research)
178
TU Delft
179
Trinity College Dublin
180
TU Dresden
181
TU Munchen
182
University of Copenhagen
183
Fraunhofer EMI
184
KTH
185
ETH Zurich
186
EPFL
187
University of Helsinki
188
Aarhus University
189
TU Dresden
190
University of British Columbia
191
University of Toronto
192
QUT
193
ANU
194
University of Auckland
195
Monash University
196
University of New South Wales
197
The University of Tokyo
198
Institute of Science Nagpur
199
The University of Adelaide
200
Monash University
201
Stellenbosch University
202
Stellenbosch University
203
Professional studies
204
205
Corporate
Drag to adjust the number of frozen columns
Uni Location
Year Founded
Department
Position at Uni
Product Type
Spinout Location
Was your spinout clearly founded on IP that you developed at University?
Did your spinout enter into a commercial agreement with your University TTO to officially spinout and/or license IP?
What % of your founding team was responsible for developing the founding IP?
Did your spinout have hired-in leadership in addition to founders?
Does your spinout still depend on its original IP today?
Equity: What % of your company did your University/TTO own upon founding and before any investment was raised?
Equity: Does the equity dilute alongside you or is it protected until you raise $Xm of external capital (i.e. "golden share")?
Royalties: What % of net sales does your University/TTO receive?
Upfront payments: Did you pay any to your University/TTO?
Milestone payments: What is the aggregate sum of milestones payable to your University/TTO?
Notes for milestone payments
Exit fees: What % of exit proceeds are due to your University/TTO?
Did your University/TTO require a board seat in your spinout?
How many months did your deal take to complete from start to finish?
How much $USD did you raise in connection with your spinout deal?
How much $USD did you raise in your first financing round after you spun out?
How much $USD has your spinout raised in total to date?
What stage is your spinout today?
Based on your experience, how would you rate the spinout process?
Have you donated money to the University from which you spun out?
Do you intend to become a significant donor if your spinout is successful?
If we could re-write spinout terms, how would you rank these options? 1% of exit value, 1-5% founding equity, 1% royalty on net sales
Any observations you'd like to share?
Dataset release
USA
2017
Electrical Engineering
Hardware
Burlington, VT, USA
Yes
75%
No
Yes
4%
0%
$0
$0
0%
No
6
$0
$1,000,000
$1,200,000
Seed
4
No
Yes
V1
USA
2021
Engineering
Faculty member
Materials
Madison, WI, USA
Yes
Yes
100%
1
Yes
0%
DIlutes
1%
$0
0%
No
4
$0
$0
$0
Pre-funding
6
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
We are still negotiating licensing so reported terms are not final. Start-up milestones are proposed related to hiring management team and raising equity financing within 12 months.
V2
USA
2021
Biology
Postdoc
Materials
Boston, MA, USA
Yes
Yes
50%
No
Yes
5%
Protected. 5% up to $40M
1%
$10,000
$14,000,000
0%
No
12
$0
$4,000,000
$4,000,000
Seed
0
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
USA
2022
Biotechnology
Postgraduate
Materials
Foster City, CA
Yes
Yes
67%
0
Yes
0%
1%
0%
No
Seed
4
Yes
1% of exit value,1-5% founding equity,1% royalty on net sales
1-5% founding equity,1% of exit value,1% royalty on net sales
In non-medical fields, founders grossly overestimate the odds of their university IP being important to the business in the long term. I think many founders should consider founding without licensing (or taking a low-cost option for a year or two) and only do a full licensing deal once it is clear that you will actually need the patents. My experience is that <10% of successful non-medical tech spin-outs end up needing their founding University IP in the end.
V1
USA
2016
Electrical Engineering
Hardware
Coralville, IA, USA
100%
Yes
0%
30%
$0
$0
0%
No
30
$0
8
No
No
1% royalty on net sales,1% of exit value,1-5% founding equity
V1
USA
2017
Health Sciences
Associate Professor
Therapeutic
Boston
Yes
Yes
33%
0
Yes
10%
Dilutes
0%
100%
No
24
$49,000,000
$67,000,000
$116,000,000
IPO exit
7
$0
No
1% of exit value,1% royalty on net sales,1-5% founding equity
It was a good experience - introduced me to the game
V2
USA
2016
Clinical Medicine
Staff
Therapeutic
USA
Yes
Yes
66%
No
Yes
0%
Protected
5%
$1,000
$11,000,000
0%
No
13
$1,000,000
$1,000,000
$1,000,000
M&A exit
4
No
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
USA
2016
Electrical Engineering
Software
Mountain View, CA, USA
Yes
Yes
100%
No
Yes
3%
1%
$25,000
See note
No milestone payments but royalty rates increase from 0.5% to 1.5% as a function of revenue, the latter becoming due for a revenue range 50-100m. However, for revenues above 100m, the rate falls off to 0.75%
0%
No
18
$300,000
$3,300,000
Seed
6
No
No
1% royalty on net sales,1-5% founding equity,1% of exit value
V1
USA
2022
Medicine
Faculty
Software
New York
No
Yes
66%
0
No
8%
Protected. Until 1 million.
1%
$0
$0
0%
No
11
$0
$0
$50,000
Pre-funding
2
$0
No
1-5% founding equity,1% of exit value,1% royalty on net sales
We were told that in order to not be sued we would have to negotiate with the TTO, even though our concept was not based on IP developed at the university (related, but not previously developed). Our faculty contract stated we had to use the TTO anyway despite this!
V2
USA
2017
Physics
Postgraduate
Hardware
NYC, NY, USA
Yes
Yes
100%
Yes
Yes
20%
Protected. 10% Forever
5%
$50,000
$3,000,000
5%
Yes
24
$0
$800,000
$12,000,000
Series A
3
No
No
This university did not know how to price the deal; neither did the founders - they were students with no entrepreneurship backgrounds; the university took advantage of that.
V1
USA
2021
Clinical Medicine
Therapeutic
Boston, MA, USA
22%
No
Yes
4%
3%
$5,000
$0
0%
No
2
3,500,000
$4,000,000
$5,000,000
Seed
7
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
By sharing the vision for your invention, you increase the value of the patent in the TTO office. It is also hard to raise capital in advance of securing option/license
V1
USA
2022
Biotechnology
Masters
Software
New York, NY
Yes
Yes
33%
0
Yes
4%
Diluted in first raise to ~6%
0%
$0
$0
0%
No
8
$100,000
$100,000
Pre-funding
8
$1,000
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
Our company agreement with Cornell is for 4% dilutable equity and 0.5% royalties of net sales for any products derived using the original founding IP with Cornell. The company also currently retains the intellectual property and not the university.
As Masters graduates of Cornell, we didn't sign any intellectual property agreements with the University when beginning our program. Our negotiation was based on the data we used at Weill Cornell. We informed Cornell immediately upon entering our stu
V2
USA
2022
Biology
Faculty
Therapeutic
Chicago, IL, USA
Yes
Yes
33%
1
Yes
3%
Dilutes
0%
$10,000,000
$10M Phase 2
0%
No
8
$6,000,000
$6,000,000
$6,000,000
Pre-funding
7
$25,000
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
V2
USA
2017
Physics
Hardware
NYC, NY, USA
Yes
100%
No
Yes
22%
0%
$100,000
$1,000,000
10%
Yes
12
$0
$1,000,000
$1,500,000
Seed
3
$600,000
No
1% royalty on net sales,1% of exit value,1-5% founding equity
Stony Brook University has been a terrible partner.
V1
USA
2019
Biology
Postdoc
Software
Chicago
Yes
Yes
100%
0
Yes
0%
1%
$100,000
1%
No
9
$3,800,000
Seed
8
$0
Yes
1% royalty on net sales,1-5% founding equity,1% of exit value
Spun out before licensing. Raised $1M+ in nondilutive grants, $1M+ in VC, prior to licensing
V2
USA
2014
Engineering
Software
Boston, MA, USA
Yes
Yes
50%
Yes
Yes
20%
0%
$100,000
$10,000,000
0%
No
6
$100,000
$300,000
$150,000
Series A
6
No
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
USA
2019
Biology
Therapeutic
Cambridge, MA, USA
No
100%
No
No
2%
0%
$0
$12,800
£10k (+ maybe the licensing milestones)
0%
No
12
$0
$2,000,000
$2,500,000
Series A
1
No
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
Everyone was happy in the end, but it took sooooo long to get there - the speed of decision-making was the biggest bottleneck for us
V1
USA
2021
Biology
Postgraduate (MBA)
Therapeutic
Cambridge, MA, USA
Yes
Yes
33%
1
Yes
3%
Protected. Until $7.5M raised.
0%
$500,000
$3,800,000
$3.8m across milestones ranging from IND submission to marketing approval for the first two drugs
0%
No
10
$0
$1,000,000
$1,250,000
Seed
0
$0
No
1-5% founding equity,1% of exit value,1% royalty on net sales
Consider asking about other terms often bundled with equity, such as information and participation rights. Consider gathering information on process, such as whether an option agreement was taken before a full license and whether a term sheet was agreed to before negotiation of definitive documents. Note that survey respondents may be spinning a technology out of an institution without being a student or even an affiliate of that institution. Lastly, I hope you update and republish the survey da
1-5% founding equity,1% royalty on net sales,1% of exit value
Following a recommendation from an advisory board, the university declined to invest in us. This advisory board was made up in majority by academics. (We do not believe these are the best people to make such calls)
V1
USA
2018
Biology
Faculty
Therapeutic
California
Yes
Yes
66%
1
No
3%
Dilutes
1%
$0
$10,000,000
0%
No
9
$0
$15,000,000
$7,000,000
Series A
7
$0
No
V2
USA
2018
Medicine
Faculty
Therapeutic
San Francisco, USA
Yes
Yes
100%
0
Yes
4%
Dilutes
1%
$20,000
See note
$75,000- IND, $175,000- Phase 2, $500,000- Phase 3, $1,500,000- US NDA, $1,250,000- Ex-US NDA, $500,000- Japan NDA,
0%
No
3
$0
$6,000,000
$65,000,000
Series B
8
$0
No
1% royalty on net sales,1-5% founding equity,1% of exit value
V2
USA
2020
Biology
Therapeutic
Boston, MA, USA
Yes
No
67%
Yes
Yes
0%
0%
$0
$0
0%
No
V1
USA
2021
Biotechnology
Postdoc
Therapeutic
Los Angeles, CA, USA
Yes
No
100%
0
Yes
0%
Protected
1%
0%
No
$400,000
$400,000
$400,000
Seed
7
$0
Yes
1% royalty on net sales,1% of exit value,1-5% founding equity
V2
USA
2016
Material Sciences
Professor
Materials
Maryland, USA
Yes
Yes
66%
1
Yes
6%
Dilutes
1%
$0
$0
2%
No
14
$0
$3,000,000
$3,000,000
Seed
3
$0
Yes
1% royalty on net sales,1-5% founding equity,1% of exit value
Lack of business experience and perspective among tech transfer officials
V2
USA
2020
Chemical Engineering
Hardware
San Francisco, CA, USA
Yes
No
100%
No
Yes
6%
5%
$30,000
$170,000
$170k. $20k for certification, $50k for sale, $100k for achieving $5M
0%
No
6
$500,000
$500,000
$900,000
Seed
7
No
Yes
1% royalty on net sales,1-5% founding equity,1% of exit value
I did not negotiate
V1
UK
2020
Engineering
Faculty member
Therapeutic
London
Yes
Yes
50%
0
Yes
20%
Dilutes
1%
$64,000
$0
20%
Yes
12
$0
$1,000,000
$1,100,000
Pre-funding
0
$0
No
1-5% founding equity,1% of exit value,1% royalty on net sales
do more surveys on this subject. UK Institutes ask for everything, giving nothing to spinouts
V2
UK
2015
Biology
Therapeutic
London, UK
Yes
Yes
50%
Yes
Yes
20%
0%
$0
$0
0%
No
8
$5,000,000
$1,000,000
$5,000,000
Series A
8
No
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
Happy to have given at least 10% starting equity to my university. They provided valuable guidance, access to patent experts, internal fund & investment network. 5% would have been too little and I appreciate value of ROI reinvestment for the university.
V1
UK
2015
Biology
Software
Boston, MA, USA
Yes
Yes
50%
No
No
30%
1%
$0
$0
0%
Yes
18
$50,000,000
$150,000,000
$1,000,000,000
IPO exit
2
No
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
V1
UK
2017
Engineering
PDRA
Materials
Cambridge, UK
Yes
Yes
33%
No
Yes
3%
Dilutes
0%
$0
$0
0%
Yes
12
$0
$4
$85
Series B
5
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
% of Net Sales should never be used in terms, it fundamentally undermines business/spin-out growth and can even affect deal achievement with some customers
V1
UK
2019
Health Sciences
CEO
Medical Device
Oxford
Yes
Yes
75%
1
No
40%
Dilutes
1%
$50,000
0%
No
2
$625,000
$1,400,000
$2,000,000
Seed
3
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
There are nuances this form doesn't capture. You assume the spinout is formed without management who then come in later. It can happen at the same time. Royalties aren't based solely on net sales - there are deductions and divisors based on the % of the IP actually used in the end service / product / device. And patent licensing costs can be deducted etc etc.
V2
UK
2010
Computer Science
PhD
Hardware
Glasgow but dead
Yes
No
100%
0
0%
Protected
1%
$0
$0
0%
No
1
$700,000
$2,000,000
$10,000,000
No longer alive
9
$0
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
Sussex at the time had just killed it's TTO SussexIP and that led to a super PhD friendly policy to give the PhD holder all rights. Without this the startup would never have happened. Despite the eventual failure of that company I am now CEO of a much larger Index Ventures backed startup and if we ever cash out then I will donate back to Sussex.
V2
UK
2011
Engineering
Software
Exited
Yes
66%
No
No
5%
0%
$0
$0
0%
No
6
$1,000,000
M&A exit
5
$147,200
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
V1
UK
2021
Physics
PhD & Postdoc
Software
London, UK
No
No
66%
0
No
0%
n/a
1%
$0
$0
0%
No
1
$0
$2,000,000
$2,000,000
Seed
7
$0
No
1-5% founding equity,1% of exit value,1% royalty on net sales
Because we were able to show that our start-up was not directly related to our work and our supervisor attested to this the university wasn't able to claim any IP
V2
UK
2021
Engineering
Software
London, UK
Yes
No
100%
Yes
Yes
0%
0%
$0
$0
0%
No
0
$0
$0
$0
Pre-funding
7
No
Yes
V1
UK
2019
Bioengineering
PhD
Diagnostic
London, UK
Yes
Yes
2%
Yes
Yes
7%
Protected
5%
$0
$256,000
5%
No
6
$1,500,000
$500,000
$2,000,000
Seed
5
No
1% of exit value,1% royalty on net sales,1-5% founding equity
V1
UK
2015
Clinical Medicine
Medical device
Oxford, UK
Yes
Yes
10%
Yes
Yes
70%
3%
$306,000
$459,000
0%
Yes
3
$1,400,000
$1,000,000
$2,400,000
Series A
0
No
No
1% royalty on net sales,1% of exit value,1-5% founding equity
V1
UK
2020
Computer Science
Software
London, UK
No
100%
No
Yes
5%
0%
$0
$0
0%
No
3
$1,200,000
$0
$1,200,000
Seed
7
No
Yes
Although no legal IP the University still insisted that our startups product still had staff input. We eventually conceded partly to be eligible for UCL Tech Fund investment who invested alongside angels and a US micro fund in the seed round.
V1
UK
2021
Physics
Medical device
Nottingham, UK
Yes
Yes
100%
No
Yes
50%
0%
$0
$0
0%
Yes
9
$200,000
$0
$200,000
Pre-funding
0
No
No
1% of exit value,1-5% founding equity,1% royalty on net sales
UK Universities need to overhaul the spin-out process. 50% was only a recent development for Nottingham, who insisted on 60% in 2019 and previously.
V1
UK
2016
Engineering
N/A
Hardware
Cambridge, UK
No
Yes
60%
1
No
5%
Dilutes
1%
$100,000
$0
0%
No
15
$950,000
$950,000
$6,000,000
Series A
0
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
.
V2
UK
2020
Biology
Therapeutic
Yes
50%
No
Yes
15%
4%
$0
$11,840,000
Took the toal: "1st 3 products at phase 1, 2, 3 and NDA submission = £0.25/1/3/5M"
0%
Yes
12
$707,172
$0
$707,172
Seed
3
No
No
1% royalty on net sales,1-5% founding equity,1% of exit value
Time is the biggest killer, that and having archaic views on the market (ie being out of touch with current norms and trends)
V1
UK
2020
Chemistry
Diagnostic
Oxford, UK
Yes
Yes
50%
Yes
Yes
10%
0%
$128,000
$0
0%
No
6
$1,250,000
$2,000,000
$3,250,000
Series A
9
No
Yes
1% of exit value,1% royalty on net sales,1-5% founding equity
V1
UK
2019
Computer Science
Medical device
London, UK
Yes
Yes
60%
Yes
No
6%
0%
$0
$0
0%
No
3
Seed
8
No
1% royalty on net sales,1% of exit value,1-5% founding equity
V1
UK
2020
Physics
PhD
Software
London
Yes
No
100%
0
Yes
25%
Protected
1%
$0
$0
10%
Yes
12
$0
$2,000,000
$10,000,000
Series A
1
$1,000,000
Yes
1% royalty on net sales,1-5% founding equity,1% of exit value
V2
UK
2021
Electrical Engineering
Assistant Professor
Software
Glasgow, Scotland, UK
No
Yes
50%
0
Yes
20%
Dilutes
1%
$138,000
$138,000
0%
Yes
10
$120,000
$850,000
$850,000
Seed
0
$0
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
V2
UK
2020
Physics
Hardware
Oxford, UK
Yes
Yes
25%
Yes
Yes
25%
2%
$64,000
$0
5%
No
6
$4,500,000
$3,000,000
$8,000,000
Seed
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
UK
2019
Computer Science
Software
Edinburgh, London, UK
Yes
15%
Yes
No
12%
5%
$0
$0
12%
No
12
$1,000,000
$10,000,000
$11,000,000
Series A
0
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
UK
2019
Computer Science
Postdoc
Software
Leeds, UK
Yes
Yes
33%
0
No
55%
1x preference
0%
$0
$0
0%
Yes
18
$0
$1,100,000
$5,760,000
Series A
3
$0
No
1% of exit value,1-5% founding equity,1% royalty on net sales
Senior tenured professors where the biggest challenge who wanted their share for having supervised the PhD research
V2
UK
2021
Clinical Medicine
Faculty
Software
Oxford, UK
Yes
Yes
100%
Yes
Yes
15%
0%
$0
$0
0%
Yes
9
$0
$100,000
$100,000
Pre-funding
8
No
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
UK
2019
Engineering
Masters
Software
London, UK
No
No
100%
Yes
Yes
0%
Protected
0%
$0
$0
0%
No
0
$0
$350,000
$500,000
Seed
10
No
Yes
V1
UK
2018
Computer Science
Software
London, UK
Yes
33%
No
No
7%
0%
$0
$0
0%
No
4
$0
$0
$0
M&A exit
3
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
V1
UK
2015
Computer Science
Software
London, UK
No
No
0%
No
No
1%
0%
$0
$0
0%
No
9
$50,000
$3,400,000
$8,000,000
Series A
0
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
The most painful part of the whole process was how long it took. Angels wouldn't invest untill we'd finalised the spinout process. And that took 9 months. It parallelised us. We had to live on savings and the whole business was a year slower than it should have been.
V1
UK
2019
Neuroscience
PhD
Software
London, UK
No
No
50%
No
No
0%
0%
$0
$0
0%
No
5
$0
$650,000
$4,000,000
Seed
1
No
No
We did not formally commercialise IP as we built the software post spin-out. However we engaged with the TTO over the period to make this decision, as my PhD research is the basis for the IP we later developed. I believe we got lucky with timing because we spun out at the moment when the University was changing between an exclusive pipeline deal with the IP Group to moving commercialisation / TTO in-house.
V1
UK
2019
Engineering
Hardware
Cambridge, UK
Yes
Yes
70%
Yes
Yes
10%
3%
$0
$0
0%
No
9
$700,000
$1,500,000
$2,200,000
Series A
9
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
Founded with the help of sweat equity firm, TTO fund did not invest. Duration of negotiation prolonged by needing to secure seed round, and delay on licence/equity grant was due to us not them.
V1
UK
2021
Computer Science
Software
Glasgow, UK
No
Yes
25%
No
Yes
20%
10%
$0
$138,000
0%
Yes
7
$1,000,000
$1,000,000
$1,000,000
Pre-funding
0
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
20% non-negotiable equity and an additional royalty is a killer
V1
UK
2021
Chemistry
Postdoc
Diagnostic
West Midlands
Yes
Yes
33%
0
Yes
30%
Dilutes
0%
$0
$690,000
0%
Yes
14
$900,000
$1,500,000
Seed
0
$0
No
University requests a board seat but doesn't always take it or they assign an observer. University required additional equity for non-active inventors named on the IP being licensed.
V2
UK
2021
Chemistry
Diagnostic
Coventry, UK
Yes
Yes
100%
No
Yes
50%
1%
$13,800
$0
0%
No
3
$180,000
$180,000
$180,000
Seed
5
No
Yes
1% of exit value,1% royalty on net sales,1-5% founding equity
Thought deal was ok. If doing again wouldn't spin out, just pay up front to license and bully uni to take our terms. Licensed tech won't be worth much in 5 years, but the equity we have away will. Uni helps a lot but Spinout process was very opaque and lots of pressure to close the deal.
V1
UK
2016
Physics
Oxford, UK
50%
6%
$54,000
$0
0%
No
24
$0
$1,700,000
$34,000,000
Series A
0
No
V1
UK
2021
Engineering
Materials
Derby, UK
Yes
Yes
50%
No
No
50%
3%
$0
$0
0%
Yes
18
$390,000
Pre-funding
2
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
I’ve given values in £. Generally I’ve found the spin out process opaque, frustrating and a TTO that’s not been supportive or enthusiastic, often moving goalposts along the way. This despite us progressing through the stages we’ve needed to as per the uni guidance. As mentioned within your FT article, we have found ourselves being treated as naughty kids!
In terms of your analysis I think it’s work asking in the survey if the founder is an undergraduate or a researcher as that will significantl
V1
UK
2020
Computer Science
Software
London, UK
No
Yes
20%
No
No
5%
0%
$0
$0
0%
No
7
$150,000
$2,500,000
$2,500,000
Seed
6
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
UK
2014
Computer Science
Software
San Francisco, CA, USA
No
33%
No
No
0%
0%
$0
$0
0%
No
1
$0
$2,500,000
$2,500,000
M&A exit
5
No
Yes
1% of exit value,1-5% founding equity,1% royalty on net sales
When there are students and staff involved it can get messy, PhD students should own their IP especially if funded by research councils. Having something simple like founder's pledge https://founderspledge.com/ would be much better for all parties.
V1
UK
2010
Computer Science
Software
London, UK
Yes
50%
No
No
5%
0%
$0
$0
5%
No
5
$0
$60,000
$1,500,000
Seed
3
No
No
V1
UK
2019
Engineering
Postgraduate PhD
Hardware
Hatfield, Uk
Yes
No
50%
0
No
50%
Dilutes
1%
$0
$0
0%
Yes
6
$30,000
$0
$0
No longer alive
5
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
If you walked away from the spin out, and why
V2
UK
2022
Biomedical Engineering
Knowledge Exchange Fellow
Diagnostic
Glasgow, UK
Yes
Yes
75%
0
Yes
15%
Dilutes
1%
$0
$0
0%
No
24
$600,000
$600,000
Seed
8
$0
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
V2
UK
1984
Electrical Engineering
Software
Hull, UK
Yes
No
66%
Yes
No
0%
0%
$0
$0
0%
No
0
$0
$25,000
$5,000,000
M&A exit
8
No
No
1% of exit value,1-5% founding equity,1% royalty on net sales
Running a spin out was an amazing learning experience, which changed my career.
V1
UK
2017
Education
Adjunct Faculty
Software
Oxford & Harvard
No
Yes
50%
0
Yes
10%
Protected
1%
$0
$0
0%
Yes
6
$750,000
$1,000,000
$3,000,000
Series A
6
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
V2
UK
2022
Computer Science
PhD
Software
Remote
Yes
Yes
66%
0
Yes
10%
DIlutes
1%
$0
$0
0%
No
18
$260,000
$0
$290
Seed
0
$0
No
1-5% founding equity,1% of exit value,1% royalty on net sales
V2
UK
2019
Chemistry
Therapeutic
London, UK
Yes
Yes
33%
Yes
Yes
20%
20%
$128,000
$0
0%
Yes
12
$750,000
$2,500,000
$3,250,000
Seed
1
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
UK
1996
Health Sciences
Ran The Business Development Department
Hardware
It was acquired by US company in January 2001
Yes
Yes
66%
0
No
22%
No such mechanism
1%
$0
See note
After 10 years we were to pay £10,000 pa in lieu of royalites. In the event the compay was sold for $200M in 6 years from start.
0%
Yes
6
$6,000,000
$1,000,000
$6,000,000
M&A exit
9
$26,000,000
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
We had a really good relationship with the University, and sold the company in 6 years from founding. We went through 2 fundraisings, one private for £1.2M, and a VC-funded raise of £3M just 3 months before sale to a US company for $200M on Jan 8th 2001. The equity held by the 3 founders and the University at date of sale was in excess of 90%. The sale value to the University at sale was around £25M, and each of the founders had £30M. Investors from private round made 7x their investment and the
V2
UK
2016
Medical Sciences
Therapeutic
Yes
Yes
75%
Yes
Yes
49%
0%
$202,500
$135,000
0%
Yes
24
$25,000,000
$0
$0
No longer alive
0
No
No
1% of exit value,1% royalty on net sales,1-5% founding equity
Risk averse TTO. Egregious pre-money equity expectations. Intransigent and complete rejection of IP assignment (despite agreed-begrudgingly, 49% pre-money equity stake) which led to a failure of the funding round.
V1
UK
1989
Chemistry
Software
USA
Yes
Yes
22%
Yes
33%
0%
$0
$0
0%
Yes
3
$500,000
$2,000,000
$10,000,000
IPO exit
4
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
I favour the university being given a small percentage (eg 5%) Golden share which is not diluted for three rounds
V1
UK
2016
Engineering
Software
Oxford, UK
Yes
100%
Yes
Yes
38%
0%
$0
$0
0%
Yes
6
$0
$1,200,000
$10,000,000
Series A
4
No
No
1% of exit value,1-5% founding equity,1% royalty on net sales
V1
UK
2015
Bioengineering
Materials
London, UK
Yes
100%
No
No
0%
0%
$0
$0
0%
No
11
$100,000
$3,500,000
$8,450,000
Seed
5
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
V1
UK
2017
Biology
Tenured Faculty
Therapeutic
Sheffield
Yes
Yes
100%
0
Yes
60%
Dilutes
1%
$0
$0
0%
Yes
3
$0
$1,100,000
$2,800,000
Series A
6
$0
No
1% of exit value,1-5% founding equity,1% royalty on net sales
V2
UK
2021
Biology
Therapeutic
London, UK
Yes
66%
No
Yes
8%
3%
$20,700
$1,863,000
0%
No
18
$5,000,000
$5,000,000
Seed
0
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
Though the terms we received were ok, the larger problem was the time it took to negotiate with the TTO, we lost several investors because of this delay and were fortunate that our funding round was not completely blown.
V1
UK
2019
Computer Science
Postdoc
Software
Remote
Yes
No
50%
Yes
No
0%
Dilutes
0%
$0
$0
0%
No
8
$50,000
$1,200,000
$1,250,000
Seed
8
No
Yes
1% royalty on net sales,1-5% founding equity,1% of exit value
We agreed with the TTC that the university did not own any of our IP, but they invested in us as a VC investor. Experience largely good, although the university shareholder agreement has substantially more onerous terms (e.g. frequency of board meetings, restrictions on companies that we can do business with for ESG reasons) than one might see elsewhere.
V1
UK
2019
Biology
Therapeutic
Oxford, UK
Yes
Yes
60%
Yes
No
25%
1%
$64,000
$0
0%
Yes
9
$34,000,000
$0
$34,000,000
Series A
7
No
Yes
All deals are context dependent and in the biotech sphere universities have often supported founding research to the tune of tens of millions, the institution should be recognised alongside the people
V1
UK
2018
Biotechnology
Therapeutic
London, UK
Yes
50%
No
Yes
62%
2%
$66,500
$2,094,750
Took the total: "£75k on first clinical trial, £500k on1£0m sales, £1m on £25m sales"
0%
Yes
8
$266,937
$266,937
Seed
1
No
No
1% royalty on net sales,1% of exit value,1-5% founding equity
investors want financial control over company, difficulty for new investors
V1
UK
2018
Computer Science
Software
London, UK
Yes
60%
Yes
Yes
5%
5%
$0
$0
0%
No
6
$2
$500,000
$2,000,000
Seed
10
No
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
UK
2008
Computer Science
Software
London, UK
No
Yes
25%
No
Yes
20%
0%
$0
$0
0%
Yes
2
$50,000
$0
$0
Series B
2
No
Yes
1% of exit value,1% royalty on net sales,1-5% founding equity
V1
UK
2018
Physics
Software
London, UK
Yes
Yes
33%
Yes
Yes
20%
0%
$0
$0
0%
Yes
6
$0
$100,000
$850,000
Seed
2
No
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
V1
UK
2021
Biotechnology
Faculty member
Medical Device
Newcastle UK
Yes
Yes
70%
1
Yes
8%
Protected. Until £3M raised.
1%
$20,000
$150,000
0%
No
14
$0
$0
$0
Pre-funding
4
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
Biggest problems are delays in decision-making which is done by people with whom we never get to meet. TTO keeps supreme control over the process, including e.g., a thorough inspection of our business plan, but they contribute nothing to the process and keep "moving the goalposts" on when they judge the plan to be worthy of a spinout.
V2
UK
2015
Physics
Hardware
Oxford, UK
Yes
Yes
66%
Yes
No
70%
1%
$0
$0
0%
Yes
7
$1,000,000
$1,000,000
$6,000,000
Series A
2
No
No
1% of exit value,1% royalty on net sales,1-5% founding equity
V1
UK
2021
Computer Science
Member
Software
Oxford
Yes
Yes
100%
1
Yes
20%
Dilutes
1%
Exit fee only
0%
Yes
2
Seed
10
$0
Yes
Questions don't reflect full complexity of deals, very happy with process, University has invested significantly in me and my work over the years and a return is appropriate to fund research and help future founders. New equity policy strikes the right balance. Disappointed you are starting from the premise that universities are unhelpful
V2
UK
1989
Material Sciences
Post-doc
Software
Cambridge, UK
Yes
Yes
50%
0
No
10%
1%
$0
$0
0%
No
6
$0
$400,000
$400,000
M&A exit
8
$0
V2
UK
2019
Physics
Hardware
Louvain-La-Neuve, Belgium
Yes
Yes
66%
Yes
Yes
66%
2%
$0
$0
0%
Yes
12
$1,000,000
$2,500,000
$3,500,000
Series A
2
No
No
University is greedy
V1
UK
2017
Engineering
Software
London, UK
Yes
50%
No
Yes
0%
0%
$0
$0
0%
No
3
$0
$2,100,000
$44,000,000
Series A
8
No
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
Having examples of successful entrepreneurs from my department/university I could look to who went before me was incredibly important. Also warm and open support/excitement from my immediate research lab, to avoid having to work on these ideas in secret.
V1
UK
2019
Computer Science
Software
London, UK
Yes
No
50%
No
Yes
0%
0%
$0
$0
0%
No
12
$0
$1,000,000
$1,000,000
Seed
0
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
Experience was very bad overall. University team had almost no understand of open source software and public good software.
V1
UK
2020
Engineering
Hardware
Lerwick, UK
Yes
Yes
50%
Yes
Yes
49%
0%
$0
$0
0%
No
6
$400,000
$0
$400,000
Seed
10
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
UK
2020
Biology
Postdoc
Therapeutic
Warwickshire, UK
Yes
Yes
100%
No
Yes
50%
1%
$0
$0
0%
Yes
3
$0
$800,000
$9,000,000
Seed
9
No
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
V1
UK
2020
Computer Science
External business person brought in to join Professor
Software
London and Sheffield, opening in Boston (US)
Yes
Yes
66%
1
Yes
8%
Diluted in first raise to ~6%
1%
$0
$0
0%
Yes
12
$3,000,000
$12,000,000
$15,000,000
Seed
2
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
University are commercially naive - they need training! The processes was horrendous and took a long time to get them to a place that worked. They nearly killed it. We were the lucky one; others are being setup to fail; will and are. It is a disgrace.
V2
UK
2022
Computer Science
Postgraduate (PhD)
Software
London
Yes
Yes
66%
0
Yes
10%
Dilutes
1%
$0
$0
0%
No
6
$300,000
$300,000
$300,000
Seed
7
0
No
1-5% founding equity,1% of exit value,1% royalty on net sales
They weren't that hands on or that helpful. Lucky we had a Professor as co-founder, who could play hard ball. Good advice on grant funding.
V2
UK
2020
Clinical Medicine
Faculty
Diagnostic
Midlands, UK
Yes
Yes
100%
No
Yes
30%
1%
$0
See note
Complex
0%
No
10
$1,000,000
$1,000,000
Seed
6
No
1% royalty on net sales,1% of exit value,1-5% founding equity
TTO often have right to director but do not insist on taking it up
V1
UK
2013
Engineering
PhD / Postdoc
Materials
Stevenage, UK
Yes
Yes
50%
0
No
1%
Protected. 1% until exit or renegotiated.
1%
$15,600
0%
No
12
$0
$1,000,000
$13,000,000
M&A exit
6
$0
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
Process felt like a slog but in hindsight it feels like a rite of passage, though that doesn’t make it right. May have benefitted from being a more collegial process. Support from the faculty felt crucial. TTO was left in a somewhat conflicted position of being both minority VC, and beneficiary of 1% value of exit. Royalty should have terminated on exit but was missed in spinout process so had to be renegotiated with the TTO before exit could complete, we got there in the end, and I would be hap
V2
UK
2018
Biology
Postgraduate
Therapeutic
Cambridge
Yes
No
66%
0
Yes
0%
They own nothing
1%
$0
$0
0%
No
1
$0
$0
$100,000
Pre-funding
10
$100,000
No
1% royalty on net sales,1-5% founding equity,1% of exit value
If you can trust someone to start the research on donations you can get away with a lot
V2
UK
2020
Computer Science
Software
London, UK
Yes
66%
Yes
Yes
6%
0%
$0
$0
0%
No
6
$0
$0
$0
No longer alive
8
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
V1
UK
2015
Bioengineering
Undergraduate
Materials
London, UK
Yes
Yes
100%
No
No
0%
Dilutes
0%
$0
$0
0%
No
11
$0
$3,550,000
$12,000,000
Seed
5
No
Yes
We only managed this path because I underwent an IP Wise Up course run by the UK IP Office, which enabled me to understand the ways we could leverage our student status to achieve 0%.
V1
UK
2019
Computer Science
Postdoc
Software
London, UK
Yes
Yes
66%
No
Yes
10%
10%
$0
$0
0%
No
12
$0
$1,000,000
$2,000,000
Seed
5
No
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
Should be 0% equity/royalties
V1
UK
2022
Physics
Recruiter as CEO for the venture
Medical device
Cambridge, UK
Yes
Yes
60%
Yes
Yes
20%
5%
$0
See note
No maximum. 5% of net sales.
0%
No
8
$100,000
$0
$0
Pre-funding
7
No
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
In my venture, a separate venture builder was involved, which did most of the negotiations before recruiting me. This situation has advantages (support, etc.), but gave me less room in the negotiations with the university. One item that missed in the survey is a performance term: if insufficient funding is attracted within a certain time, the university retains the right to end the licensing agreement for the IP.
V1
UK
2021
Clinical Medicine
Software
Newcastle, UK
Yes
65%
Yes
Yes
40%
0%
$0
$0
0%
Yes
6
$425,000
$425,000
Seed
8
No
No
1% of exit value,1-5% founding equity,1% royalty on net sales
V1
UK
2021
Computer Science
Software
London, UK
Yes
Yes
45%
Yes
Yes
5%
6%
$0
$0
2%
No
9
$750,000
$0
$750,000
Seed
1
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
Poor experience. All good folks in TTO but system doesnt work, unnecessary paperwork, weird rules especially of any inventor (even of patents years ago) has to offered equity (in addition to university reward scheme) leading to months of delays. Unnecessary complicated rules in guise of 'reputational risk'. Reputational risk used as 'national security' in government to do whatever they want
V1
UK
2021
Chemistry
Therapeutic
London, UK
No
100%
No
Yes
5%
0%
$15,180
$13,800
0%
No
5
$0
$0
$145,000
Seed
0
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
Oxford did not even allow much negotiation room - such spinout processes should be allowed negotiation on a case-by-case basis. For example, our company did not develop from any PhD work and is exclusive of any university staff members. Yet, since we conceived the idea when we're in uni, Oxford claims ownership of the company. Considering this, we should be treated on the different basis and should not need to provide rights to Oxford that they normally ask of their actual spin-outs (we didn't e
V1
UK
2013
Biochemistry
PhD
Materials
London, UK
Yes
Yes
33%
No
Yes
1%
3%
$0
$13,300
1%
No
12
$1,200,000
$3,080,000
$4,200,000
M&A exit
4
No
No
1% of exit value,1-5% founding equity,1% royalty on net sales
The poll needs to differentiate between non-dilutive shares (i.e. golden shares) and dilutive shares. We had a choice of 20% dilutive equity or 1% non-dilutive.
V1
UK
2019
Computer Science
Software
Cambridge, UK
Yes
Yes
100%
No
No
1%
0%
$0
$0
0%
No
12
$704,000
$1,900,000
$1,900,000
Seed
10
No
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
Cambridge and the Computer Science Department are very open to spin-outs and do not take any IP ownership, unless a patent is filled.
V1
UK
2021
Engineering
Materials
Oxford, UK
Yes
Yes
66%
Yes
Yes
15%
0%
$45,000
$0
0%
Yes
12
$0
$80
Pre-funding
1
No
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
TTOs don't trust academic founder, they do not believe we can do the job and I think this is part of the problem
V1
UK
2021
Physics
Software
London, UK
No
No
50%
Yes
Yes
5%
0%
$0
$0
0%
No
12
$25,000
$3,000,000
$30,000,000
Seed
5
No
No
1% royalty on net sales,1% of exit value,1-5% founding equity
V1
UK
2017
Clinical Medicine
Staff
Software
London, UK
Yes
Yes
25%
Yes
No
10%
Protected. Up to £3M
0%
$0
$0
0%
No
6
$1,000,000
$1,250,000
$2,250,000
Seed
2
No
No
V1
UK
2022
Chemistry
TTO manager
Therapeutic
Glasgow
Yes
Yes
40%
1
Yes
20%
Protected. 20% until Seed round raised.
0%
$0
$0
0%
Yes
16
$2,000,000
$3,500,000
$3,500,000
Pre-funding
7
$0
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
To attract private venture capital, equity stake for University needs to be below 5%, net sales need to be less than 2%, upfront payment needs to just cover patent costs (e.g. less than £50k), milestones need to be eliminated or greatly reduced (e.g. first in human testing less than £50k, not £500k as that would represent 20-30% of the cost of the Phase I trial!)
V2
UK
Chemistry
Software
Oxford, UK
Yes
22%
No
33%
50%
$0
$0
0%
Yes
$50,000
$1,000,000
$16,000,000
IPO exit
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
Golden shares for the University a good idea, not diluted for 3 rounds
V1
UK
2018
Clinical Medicine
PhD
Diagnostic
Cambridge, UK
No
No
100%
Yes
No
0%
0%
$66,500
$0
0%
No
3
$0
$11,000,000
$11,000,000
Seed
6
No
No
Note, I complete this form as employee #6 from the perspective of the co-founder/CEO who's PhD focused on developing the AI tools to support the diagnostic test developed by the other two co-founders
V1
UK
2020
Engineering
Postgraduate
Hardware
Oxford, UK
Yes
Yes
33%
No
Yes
10%
0%
$0
See note
We pay a 1% royalty on total revenues when revenues get over £30m
0%
No
9
$0
$120,000
$120,000
Seed
6
No
No
V1
UK
2021
Computer Science
Full Professor (Tenured Faculty Member)
Software
London
Yes
Yes
100%
0
Yes
5%
Protects. Until £3M raised.
1%
$138,000
$13,800
£10k to extend milestones
0%
No
10
$0
$1,000,000
$1,000,000
Seed
6
$0
No
1-5% founding equity,1% of exit value,1% royalty on net sales
Process was slow.
Very little could be negotiated.
No support in fundraising.
IP assignment on exit is fully specified in terms.
Royalties at 5% + all incurred legal fees on patents.
IP overlap between lab and spinout may become problematic.
V2
UK
2019
Health Sciences
Postgraduate
Medical Device
Hatfield uk
Yes
Yes
100%
0
No
19%
Dilutes
1%
$0
$0
0%
Yes
18
$0
$0
$87,000
Seed
0
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
I would like to see more offer of support in expertise from Universities. They often focus on control of the company rather than how they can provide resources to nourish them.
V2
UK
2020
Clinical Medicine
PhD
Software
London, UK
Yes
Yes
100%
No
Yes
5%
Protected. Up to £3M
9%
$0
$64,000
0%
No
18
$1,750,000
$0
$1,750,000
Seed
0
No
No
There is quite a bit of detail in the royalty agreement not captured here, e.g. that the royalties change based on licensed vs derivative product, the geography, whether it is a direct vs reseller sale etc.
V1
UK
2019
Computer Science
Faculty
Materials
Yes
Yes
100%
No
Yes
43%
Dilutes
0%
$0
$76,800
Historical patent costs at £60k
0%
Yes
24
$25,000
$110,000
$150,000
Seed
5
No
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
You should ask what happens of the founders
V1
UK
2018
Engineering
Postdoc
Medical Device
Louvain-la-Neuve
Yes
Yes
75%
1
Yes
40%
Dilutes
1%
$266,000
$133,000
10k per year during 10 years
0%
Yes
24
$50,000
$4,000,000
$5,000,000
Series A
0
$250,000
Yes
1% royalty on net sales,1% of exit value,1-5% founding equity
Very hard and long negotiation. The final deal is still not very good for the founders, but is far better than the 1st transfert conditions proposed by the TTO. The TTO didn't add any value in the project (no useful advice, no business insights, no business strategy,...). The TTO used the fact that very few information is available to founders about IP transfer, in order to squeeze them. So your initiative is great !
V2
UK
2017
Engineering
Software
UK
Yes
Yes
100%
Yes
No
50%
15%
$300,000
$0
0%
Yes
38
$0
$1,900,000
$5,000,000
Series A
0
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
No taking board seats, creates undue delays and inflexibility, extending University style bureaucracy which is incompatible with the startup context, if they must then no bringing in a non entrepreneur - zero value add
V1
UK
2016
Computer Science
Software
London, UK
No
Yes
100%
No
No
10%
0%
$0
$0
0%
No
9
$0
$1,250,000
$11,250,000
Series A
2
No
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
V1
UK
2017
Computer Science
Software
Oxford, UK
No
100%
Yes
No
18%
0%
$0
$0
0%
Yes
9
$0
$2,000,000
$2,500,000
M&A exit
0
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
V1
UK
2017
Computer Science
Software
Newcastle, UK
Yes
No
100%
No
No
40%
0%
$0
$0
0%
No
0
$0
$0
$0
No longer alive
3
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
V1
LatAm
1990
Chemistry
Faculty Member
Materials
cdmx
No
No
10%
0
No
1%
0%
0%
No
30
$0
$0
$0
Pre-funding
2
$10,000
No
V2
EU
2016
Computer Science
Software
Nordics
Yes
No
33%
No
No
18%
0%
$55,500
$0
0%
Yes
10
$0
$300,000
$2,000,000
Seed
0
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
We ended up buying the university’s equity prior to our first funding round
V1
EU
2019
Neuroscience
N/A
Therapeutic
Germany
No
No
0%
1
No
60%
Dilutes
0%
$0
0%
Yes
24
$0
$0
$30,000,000
Series A
0
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
A lot of German TTOs just don't get it. They have no clue what it means to create value through start-up formation. They are killing the startups the moment they spin them out with the ridiculous terms they ask for. Crazy and a pity given the amazing innovation in the country.
V2
EU
2016
Computer Science
Software
Zurich, Switzerland
No
Yes
66%
Yes
No
15%
0%
$0
$250,000
250k at 5m revenue
0%
No
3
$1,500,000
$1,600,000
$7,000,000
Seed
8
No
Yes
1% of exit value,1-5% founding equity,1% royalty on net sales
No dual roles. Are unis an investor or not? If yes, act like one. If not, dont push with investor arguments!
V1
EU
2017
Clinical Medicine
Diagnostic
Lausanne, Switzerland
Yes
Yes
33%
No
Yes
20%
0%
$0
$10,000,000
$10M if Phase 1
0%
No
0
$1,000,000
$3,000,000
$15,000,000
No longer alive
8
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
Liberals vs conservatives
V1
EU
2019
Electrical Engineering
Hardware
Louvain-La-Neuve, Belgium
Yes
Yes
33%
No
Yes
52%
3%
$44,800
$0
0%
Yes
24
$17,143
$100,000
$100,000
Seed
3
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
Difficult and long negotiation process to manage in parallel to R&D and business, university TTO didn't take into account and minimize the risk of the founders during the creation of the company and their involvement.
V1
EU
2020
Agriculture
postgraduate
Hardware
Uppsala, Sweden
No
No
67%
0
Yes
0%
Protected
1%
$0
$0
0%
No
1
$0
$7,000,000
$25,000,000
Seed
10
$0
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
The University has been helpful post spinout, with advisors and premises.
V2
EU
2018
Physics
Hardware
Copenhagen, Denmark
Yes
Yes
100%
No
Yes
0%
2%
$0
$20,000
Gradually pay upto 20k Euro from Year 3 after stigning the TTA
0%
No
12
$100,000
$100,000
$3,000,000
Series A
7
No
Yes
1% of exit value,1% royalty on net sales,1-5% founding equity
V1
EU
2020
Chemistry
Materials
Sion, Switzerland
Yes
33%
No
Yes
10%
1%
0%
No
5
$1,000,000
$1,000,000
Seed
2
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
EU
2020
Computer Science
Software
Zurich, Switzerland
No
100%
No
No
0%
0%
$0
$0
0%
No
1
$0
$2,800,000
$2,800,000
Seed
5
No
Yes
V1
EU
2018
Computer Science
Software
Stockholm, Sweden
Yes
No
100%
No
Yes
0%
0%
$0
$0
0%
No
0
$0
$1,400,000
$1,400,000
Seed
10
No
In Sweden, Professors and Students own their IPR
V1
EU
2020
Physics
Postdoc
Hardware
Paris, France
Yes
Yes
50%
Yes
4%
Dilutes
4%
$0
$0
0%
No
16
$0
$700,000
$700,000
6
No
No
VCs came in very early in the process. They took 45% NFDiluted of the shares, while my co-founder and I basically have 30 in Fully diluted. It's almost shameful
V1
EU
2021
Biology
Masters, PhD
Therapeutic
Lausanne, Switzerland
No
No
100%
0
No
0%
Protected
1%
$0
$0
3%
No
2
$150,000
$2,300,000
$2,600,000
Seed
8
$0
No
1% of exit value,1-5% founding equity,1% royalty on net sales
We did a deal of equity (in form o
V2
EU
2021
Physics
Software
Delft, Netherlands
Yes
Yes
66%
No
No
5%
0%
$0
$0
0%
No
6
$2,500,000
$2,500,000
$2,500,000
Seed
6
No
No
V1
EU
2013
Engineering
Postdoc
Software
Louvain-la-Neuve
Yes
Yes
100%
0
Yes
0%
Protected
1%
$0
$0
0%
No
12
$18,600
$0
$600,000
Seed
5
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
The TTO was expected to be a partner and to support in the devlopment/promotion of the company. It was not the case
V2
EU
2017
Humanities
Software
Trondheim, Norway
No
Yes
100%
No
No
50%
0%
$7,500
$0
0%
No
1
$0
$400,000
$450,000
Seed
2
$50,000
No
Our company was founded based upon a claimed invention with no IPR protection except from a license agreement by the Technology Transfer Office. 6 months of commercialization revealed that the University did not own the rights of the claimed invention and shortly after the licence agreement was ended. This put the company in a difficult situation since the TTO owned a substantial amount of stock, but the value built was created by the entrepreneurs, and not the researchers or the TTO.
I would
V1
EU
2014
Computer Science
Software
Switzerland
Yes
Yes
80%
No
No
0%
0%
$16,412
$0
0%
No
1
$0
$1,000,000
M&A exit
8
$20,000
No
1% royalty on net sales,1-5% founding equity,1% of exit value
V1
EU
2020
Computer Science
Software
Barcelona, Spain
Yes
Yes
66%
Yes
Yes
10%
10%
$0
$0
0%
No
3
$0
$100,000
$100,000
Pre-funding
8
No
No
1% royalty on net sales,1-5% founding equity,1% of exit value
Research team could be re-admited if spin out fails
V1
EU
2017
Biology
Software
Basel, Switzerland
No
25%
No
Yes
0%
0%
$0
$0
0%
No
0
$0
$3,500,000
$10,000,000
Series A
9
No
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
Our core founding IP is an algorithm developed at the University and also published before we founded the company. We used the concept but reimplemented the algorithm from scratch and didn't use a single line of the original source code. Hence, the university didn't get any share in the startup. We later co-developed products with other universities and there we have agreed on milestone payments and royalties in the range of 1-5% of net sales.
V1
EU
2017
Biotechnology
Software
Tours, France
Yes
Yes
90%
Yes
No
0%
5%
$0
$0
0%
No
18
$0
$0
$0
Seed
3
No
No
1% of exit value,1% royalty on net sales,1-5% founding equity
V1
EU
2020
Biology
Therapeutic
Barcelona, Spain
No
Yes
25%
No
No
10%
0%
$0
$0
0%
No
Pre-funding
5
No
No
1-5% founding equity,1% royalty on net sales,1% of exit value
These figures were obtained during the discussions with the center. The company has not been created yet and we are not working with this university-affiliated center anymore. It is possible that they would have come down during negotiations.
V1
EU
2019
Clinical Medicine
Medical device
Belgium
25%
Yes
0%
0%
$0
$0
0%
Yes
12
$2,600,000
$3,750,000
$7,500,000
Seed
8
No
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
EU
2019
Biotechnology
Postdoc
Hardware
Luxembourg
Yes
Yes
50%
No
Yes
0%
7%
$0
$0
0%
No
9
$0
$0
$0
Seed
6
No
No
1% of exit value,1-5% founding equity,1% royalty on net sales
We did not pay anything upfront as our IP was mostly software and developed by me. Not a huge impact in the short term. With a second IP we are licensing the story will be different.
V1
EU
2021
Biology
Materials
Ireland
Yes
Yes
100%
Yes
Yes
15%
3%
$0
$0
0%
No
6
9
V1
EU
2015
Computer Science
Software
Zurich, Switzerland
No
No
66%
No
Yes
0%
0%
$0
$0
0%
No
1
$0
$800,000
$800,000
M&A exit
7
No
No
1% of exit value,1% royalty on net sales,1-5% founding equity
V1
EU
2017
Material Sciences
Postdoc
Materials
Uppsala, Sweden
Yes
No
50%
0
Yes
0%
Protected
1%
$0
$0
0%
No
1
$0
$1,200,000
$10,000,000
Seed
10
$0
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
The university has helped us post spinout with access to labs and equipment, helping us employ industrial PhD's, collaborating on research, etc.
V2
EU
2021
Clinical Medicine
Research Engineer
Medical Device
Magdeburg, Germany
Yes
Yes
50%
No
Yes
0%
5%
$0
$0
0%
No
18
$0
$500,000
$500,000
Seed
3
No
Yes
1% royalty on net sales,1% of exit value,1-5% founding equity
Buying option
V1
EU
2020
Chemistry
Materials
Israel
Yes
Yes
50%
Yes
Yes
20%
2%
$10,000
$100,000
0%
Yes
6
$600,000
$600,000
Pre-funding
5
No
No
1% royalty on net sales,1-5% founding equity,1% of exit value
V1
EU
2019
Biology
Therapeutic
Israel
Yes
Yes
0%
Yes
Yes
13%
2%
$0
$25,000,000
0%
No
12
$3,000,000
$4,000,000
Seed
1
No
1% of exit value,1-5% founding equity,1% royalty on net sales
The startup was founded as part of an accelerator program. One of the major mistakes was choosing not to involve the inventors as founders, and instead hire external pharma executives (with no experience in the field of the technology) to run it.
V1
EU
2018
Biology
Software
Barcelona, Spain
Yes
100%
No
No
11%
1%
$0
$0
0%
No
15
$0
$900,000
$5,000,000
Seed
1
No
Yes
1% royalty on net sales,1% of exit value,1-5% founding equity
Thanks for this!
V1
EU
2017
Computer Science
Software
Troyes, France
Yes
Yes
20%
Yes
Yes
12%
0%
$0
$0
12%
No
24
$0
$500,000
$500,000
Seed
7
No
No
1% royalty on net sales,1% of exit value,1-5% founding equity
V1
EU
2018
Electrical Engineering
PhD, Group Leader
Hardware
Greater Hamburg Area
Yes
Yes
50%
0
Yes
25%
25% were grabbed by Fraunhofer as precondition for getting the exclusive IP licenses. The 25% diluted in the same way the founder's shares diluted by following investments.
1%
$0
No milestone payments but revenue dependent royalties of 3.5% plus a basic stepwise growing royalty fee of EUR100k, EUR200k, in addition we have to pay all patent costs & attorney costs for IP maintanence.
0%
No
32
$0
$600,000
$18,000,000
Series A
0
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
At Fraunhofer we negotiated with an anonymous "compliance board" of 10-15 persons which was represented by 2 persons who had no decision rights. Based on that intransparent setup no real negotiation were possible. Because of Fraunhofer having such large equity stake our company and because of such disadvantageous license deal we were not able to raise additional money. Thus, it became necessary to buy back the shares of Fraunhofer (getting rid of them). When they took over the shares they paid a
V2
EU
2016
Computer Science
Software
Varberg, Sweden
20%
No
0%
0%
$0
$0
0%
No
0
$0
$550,000
$3,000,000
Seed
10
No
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
in Sweden, researchers own their IP.
V1
EU
2017
Chemistry
Materials
Yes
No
50%
No
Yes
0%
0%
$0
$0
0%
No
0
$0
$1,000,000
$15,000,000
Series A
10
No
Yes
In Sweden, researchers own the IP they produce. Therefore, spinout terms are excellent.
V1
EU
2013
Computer Science
Software
Dublin, Ireland
Yes
Yes
66%
Yes
Yes
5%
1%
$150,000
$150,000
0%
No
6
$100,000
$250,000
$500,000
Seed
3
No
No
1% royalty on net sales,1% of exit value,1-5% founding equity
Commercialising software into hi-tech sectors needs a funding round on spin out to ensure the academic founders can join the company.
V1
EU
2021
Computer Science
Software
Hamburg, Germany
No
100%
No
Yes
0%
0%
$0
$0
0%
No
0
$0
$0
$0
Pre-funding
7
No
No
This survey asks too many Qs assuming IP from the university was used...
V1
EU
2013
Electrical Engineering
Lab Manager
Hardware
France
Yes
Yes
75%
Yes
Yes
15%
Dilutes
4%
$0
$0
0%
No
12
$750,000
$3,000,000
$20,000,000
Series B
7
No
No
1% of exit value,1-5% founding equity,1% royalty on net sales
I dont think you can get a good understanding of what's at play between universities / RTOs and founders with a survey like this. Every startup is different, many universities and RTO have standard terms when it comes to licences and equity. So much has to do with the amount of trust that you can build, this is probably the most important factor in the deal you eventually get.
V1
EU
2019
Computer Science
Software
Delft, Netherlands
No
Yes
No
No
15%
0%
$0
$0
0%
Yes
18
$25,000
$300,000
Pre-funding
1
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
The university first demanded 30% without any IP being involved and threatening lawsuits if staff members were involved at all, but eventually "settled" with 15%. The process took well over a year, leading to the loss of initially interested industry partnerships.
V1
EU
2019
Physics
Hardware
Amsterdam, Netherlands
Yes
Yes
25%
Yes
Yes
0%
3%
$0
See note
0 because it's royalties: "1% royalty fees on net sales>1M€ and up to 3% for sales >3M€"
9%
No
10
$250,000
$0
$450,000
Seed
3
No
Yes
1% royalty on net sales,1% of exit value,1-5% founding equity
V1
EU
2019
Clinical Medicine
Medical device
Norway
Yes
Yes
50%
No
Yes
15%
1%
$5,685
$0
1%
No
2
$0
$150,000
$450,000
Seed
2
No
Yes
1% royalty on net sales,1-5% founding equity,1% of exit value
V1
EU
2018
Computer Science
Software
Copenhagen, Denmark
No
Yes
50%
Yes
Yes
0%
2%
$15,000
$150,000
0%
No
10
$500,000
$500,000
$6,000,000
Seed
0
No
No
1% of exit value,1-5% founding equity,1% royalty on net sales
Ask into 'buy out' options. Can the IP be bought out? In our case the university wouldn't allow that
V1
EU
2018
Computer Science
Software
Zurich, Switzerland
Yes
Yes
33%
No
Yes
0%
0%
$0
$0
0%
No
V1
EU
2020
Engineering
Hardware
Dublin, Ireland
Yes
No
100%
No
No
5%
0%
$0
$0
0%
No
12
$300,000
$300,000
Pre-funding
6
No
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
EU
2016
Physics
Hardware
Paris, France
Yes
100%
No
Yes
8%
2%
$0
$80,000
0%
No
8
$0
$400,000
$3,500,000
Seed
2
No
No
1% of exit value,1% royalty on net sales,1-5% founding equity
"Did you hire the right lawyer so you would not have to wrestle with spinout folks?"
V1
EU
2016
Computer Science
PhD and Senior Lecturer
Software
Varberg, Sweden
Yes
No
25%
0
Yes
0%
Protected
0%
$0
$0
0%
No
1
$0
$1,200,000
$6,200,000
Series A
10
$0
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
V2
EU
2013
Computer Science
Not tenured
Software
Limerick, Ireland
No
Yes
66%
1
Yes
20%
Dilutes
1%
$0
$0
0%
No
5
$250,000
$1,000,000
$2,000,000
M&A exit
5
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
Ask about total % demanded by full-time tenured academics who don't propose to join the company >25% of their time.
V2
EU
2018
Electrical Engineering
Software
Genk, Belgium
Yes
Yes
80%
No
No
15%
0%
$0
$0
0%
Yes
15
$400,000
$400,000
$600,000
Seed
6
No
No
1% royalty on net sales,1-5% founding equity,1% of exit value
V1
EU
2021
Computer Science
Software
Zurich, Switzerland
No
No
100%
No
No
0%
0%
$0
$0
0%
No
1
$0
$500,000
$800,000
Pre-funding
10
No
Yes
V1
EU
2021
Mechanical Engineering
Commercial Lead (not tenured)
Medical Device
Dublin
Yes
Yes
66%
1
Yes
15%
Dilutes
1%
$0
$118,000
0%
Yes
16
$550,000
$550,000
$550,000
Seed
0
$0
No
Forced equity to be provided to academics who remain in their tenured role as well as receiving IP royalty payments. Clear and visible commitment from the University that they would protect their IP. More robust employment contracts from Universities with members of the pre spin out team, such that they cannot take IP created as part of the project and set up competing companies
V2
EU
2019
Computer Science
Software
Hasselt, Belgium
No
Yes
33%
No
Yes
0%
4%
$172,280
$1,120,000
Used 1M: "1M for royalty to share conversion at min 18% of post round A shares"
18%
No
18
$300,000
$200,000
$2,000,000
Seed
2
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
Fixed terms benchmarked worldwide based on roundA biz plan valuation
V1
EU
2007
Biotechnology
Materials
Lille, France
Yes
Yes
50%
No
Yes
0%
5%
$0
$0
5%
No
15
$1,000,000
$0
$1,000,000
M&A exit
3
No
No
V1
EU
2019
Engineering
Materials
Germany
Yes
Yes
100%
No
No
5%
1%
$56,000
$0
0%
No
20
$250,000
$500,000
$1,000,000
Seed
3
No
No
1% royalty on net sales,1-5% founding equity,1% of exit value
What type of shares the TTO would get (eg common or „only“ ESOP)? And earn outs (eg how to gradually take the IP over). And the payment for the upfront (eg financed via loans by the Uni). And if endowments would invest.
V1
EU
2021
Physics
Postdoc
Hardware
Switzerland
No
Yes
100%
No
No
8%
6%
$0
$1,000,000
0%
No
4
$1,200,000
$3,000,000
Seed
2
No
No
1% of exit value,1-5% founding equity,1% royalty on net sales
V1
EU
2019
Computer Science
Software
Germany
Yes
Yes
50%
No
Yes
0%
15%
$15,098
$0
0%
No
12
$0
$300,000
$300,000
Seed
0
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
V1
EU
2015
Biotechnology
Business Development Manager
Materials
NL
Yes
Yes
100%
0
No
0%
Protected
1%
$300,000
$0
0%
No
18
$350,000
$0
$0
M&A exit
10
$0
No
1% royalty on net sales,1% of exit value,1-5% founding equity
It took us 18 months but we also took employees with us. The IPR discussion was rather easy. I hear some negative stories. Our story with TNO was very positive and I am TNO very greatful.
V2
EU
2020
Civil Engineering
Undergraduate
Materials
Amsterdam
Yes
Yes
13%
1
Yes
25%
There is a liquidation preference for the 25%, the university will exit first
0%
$0
$0
0%
Yes
2
$0
$0
$150,000
Pre-funding
6
$0
No
1% royalty on net sales,1% of exit value,1-5% founding equity
decision making goes way less quick with the uni on the cap table
V2
EU
2021
Computer Science
Software
Dublin, Ireland
Yes
100%
No
Yes
8%
6%
$0
$0
0%
No
2
$1,200,000
$0
$1,200,000
Seed
No
No
1% of exit value,1-5% founding equity,1% royalty on net sales
TCD has been criticised by other institutions in Ireland for taking a lower equity stake .
V1
EU
2020
Engineering
Postdoc
Hardware
Dresden, Germany
Yes
Yes
100%
No
Yes
0%
0%
$53,760
$0
0%
No
12
$0
5
No
No
1% royalty on net sales,1-5% founding equity,1% of exit value
It's not all about finding financing when you can be profitable.
V1
EU
2020
Computer Science
Software
Germany
Yes
Yes
75%
No
Yes
4%
0%
$171,000
$0
0%
No
3
$1,100,000
$3,000,000
$4,000,000
Seed
3
No
Yes
1% of exit value,1-5% founding equity,1% royalty on net sales
V1
EU
2018
Biology
External (but inventor a professor)
Materials
Copenhagen
Yes
Yes
20%
0
Yes
0%
no equity
0%
$11,800
$118,000
0%
No
18
$0
$1,500,000
$4,200,000
Series A
4
$0
No
1% royalty on net sales,1-5% founding equity,1% of exit value
As always, it the slowness that kills
V2
EU
2020
Physics
Software
Freiburg, Germany
Yes
Yes
33%
No
Yes
0%
2%
$0
$0
0%
No
12
$0
$1,200,000
$1,200,000
Seed
5
No
No
1% royalty on net sales,1% of exit value,1-5% founding equity
Slow process with many parties, not well coordinated, lot's of (unnecessary) pressure building, highly unprofessional argumentation. We nearly blew the deal at some point. The only thing which saved the deal was the good relationship to the insitute.
V1
EU
2013
Computer Science
Software
Stockholm, Sweden
Yes
50%
No
No
0%
0%
$0
$0
0%
No
0
$250,000
$3,500,000
$5,000,000
Series A
10
No
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
In Sweden, the university is not entitled to anything at all. 100% goes to the founders. Tebre was no negotiations nothing to talk about. Startups are already hard, just take it and try to make the biggest companies you can.
V1
EU
2022
Sustainability
PhD
Software
Zurich, Switzerland
Yes
Yes
90%
0
Yes
0%
Protected
1%
$0
See note
CHF 25,000 due we reach CHF 20m or in 2028, whatever occurs earlier
0%
No
5
$0
$100,000
$100,000
Seed
5
$0
No
1% royalty on net sales,1% of exit value,1-5% founding equity
We are a software spin-off. ETH usually creates royalty based agreements and since there is no patent - no equity is taken. We have small annual minimum payments but the royalties are structured in 3 tiers based on turnover. We have the right to sublicense at a high royalty rate. ETH Transfer were a pain in the ass though!
V2
EU
2020
Computer Science
postdoc
Software
Lausanne, Switzerland
No
Yes
33%
0
No
2%
Dilutes
0%
$0
$0
0%
No
12
$500,000
$0
$500,000
Seed
6
$0
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
V2
EU
2019
Biology
Materials
Helsinki, Finkand
No
85%
Yes
Yes
0%
0%
$0
$0
0%
No
0
$0
$150,000
$150,000
Pre-funding
1
No
No
1% royalty on net sales,1% of exit value,1-5% founding equity
University/TTO assumed it has automatic right to share of firm, regardless of what actual founders think. since no actual IP was transferred, University was not given share of the company. 'Arrogance' comes to mind to best describe the attitude of the representatives of the University
V1
EU
2021
Clinical Medicine
Therapeutic
Aarhus, Denmark
Yes
100%
Yes
Yes
0%
2%
$0
$160,000
0%
No
6
0
$0
$220,000
Pre-funding
8
No
No
V1
EU
2018
Chemistry
Materials
Dresden, Germany
Yes
100%
No
Yes
10%
0%
$118,000
$0
0%
Yes
9
$900,000
$900,000
$3,000,000
Series A
7
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
V1
Canada
2015
Psychology
Researcher
Software
Out ot Business
Yes
No
33%
0
Yes
0%
Protected
0%
$0
$0
0%
No
1
$0
$350,000
$350,000
No longer alive
8
$0
No
1% royalty on net sales,1-5% founding equity,1% of exit value
V2
Canada
2018
Computer Science
Professor
Software
Toronto
No
No
100%
0
No
0%
Company acquired prior to raise.
1%
$0
$0
0%
No
0
$0
$0
$0
M&A exit
10
$20,000
The survey assumes the existence of founding IP. We were a services company, no such IP. Also assumes that spin out requires specific agreement, not so at our school (simply a substantial use of resources test). Also assumes we would need to raise money, we didn’t: self funded, and immediately profitable.
V2
APAC
2019
Electrical Engineering
Hardware
Brisbane, Australia
100%
No
0%
0%
$0
$0
No payments as we founded without the uni after lengthy negotiations
0%
No
18
$0
$400,000
$450,000
Seed
0
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales
After very long and terrible negotiations we spun out without the unis involvement. Has pros and cons but the uni here was really not supporting spin outs. So it’s the only way for now. It should be a lot easier and better managed is my feedback
V1
APAC
2020
Computer Science
Hardware
Yes
Yes
80%
Yes
Yes
5%
0%
$0
$0
0%
No
6
5
$5
$12
Seed
8
No
Yes
1-5% founding equity,1% of exit value,1% royalty on net sales
A good experience
V1
APAC
2022
Chemical Engineering
Postdoc
Materials
Auckland, NZ
Yes
Yes
100%
0
Yes
5%
Protected. 5% before investment.
1%
$0
$0
0%
No
6
$0
$1,000,000
$1,000,000
Seed
8
$0
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
V2
APAC
2012
Engineering
Software
Melbourne, Australia
Yes
Yes
100%
No
Yes
0%
3%
$0
$0
0%
No
6
$0
$1,000,000
$68,000,000
IPO exit
7
No
No
1% royalty on net sales,1-5% founding equity,1% of exit value
Uni did not take equity in our spinout (royalty only). Monash now has far greater spinout support in the decade since my spinout. I think far too money investors are of the view founders should be enabled to become billionaires (this is in the investors interests). The point of Uni research (and of great founders) is to make a positive impact on the world. Not to line their pockets. Universities can do better at helping build the businesses and founders up at the start, but they should not be re
V1
APAC
2021
Civil Engineering
Associate Professor
Software
Sydney
Yes
Yes
100%
0
No
5%
SAFE note with a triger financial event
1%
$0
$0
0%
No
12
$0
$0
$0
Seed
8
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
V2
APAC
2021
Computer Science
Postdoc
Software
Tokyo, Japan
Yes
Yes
1%
1
Yes
0%
Protected
0%
20%
No
8
$50,000
$20,000
$60,000
Pre-funding
4
$0
Yes
V2
APAC
2019
Computer Science
Software
Mumbai, India
No
No
100%
No
Yes
0%
0%
$0
$0
0%
No
15
$50,000
$0
$0
Pre-funding
8
No
Yes
1-5% founding equity,1% royalty on net sales,1% of exit value
No
V1
APAC
2017
Agriculture
Faculty member
Hardware
Adelaide, Australia
Yes
Yes
100%
1
Yes
33%
Dilutes
1%
$0
$0
0%
No
18
$0
$0
$0
Seed
5
$0
No
1% of exit value,1-5% founding equity,1% royalty on net sales
V2
APAC
2021
Engineering
Faculty member
Hardware
Melbourne, Australia
Yes
Yes
100%
0
Yes
10%
Diluted in first raise to ~6%
1%
$0
$375,000
0%
No
12
$0
$1,280,000
$1,280,000
Seed
5
$0
No
1% of exit value,1% royalty on net sales,1-5% founding equity
University TTO staff needs to have their incentives aligned with those of commercial success,
V2
Africa
2021
Engineering
Postgraduate
Software
Cape Town, South Africa
No
Yes
75%
0
Yes
25%
Dilutes
1%
$0
$0
0%
Yes
3
$70,000
$0
$70,000
Seed
10
$0
No
1-5% founding equity,1% royalty on net sales,1% of exit value
V2
Africa
2019
Biology
Postgraduate (Masters)
Materials
Stellenbosch, South Africa
Yes
Yes
100%
0
No
20%
Dilutes
1%
$0
0%
Yes
12
$35,000
$200,000
$250,000
Series A
3
$0
No
1% of exit value,1% royalty on net sales,1-5% founding equity
Our experience was generally pretty unsatisfactory. The university is a bureaucratic beast that does not operate at startup speeds. Furthermore, they do not provide much industry specific support, despite the industry growing exponentially.
V2
2020
Engineering
Software
Accra, Ghana
No
No
22%
No
No
0%
0%
$0
$0
0%
No
5
$0
$30
$60
Seed
8
No
Yes
1% royalty on net sales,1-5% founding equity,1% of exit value
Entrepreneur and networking is best for Spinout
V1
2017
Faculty
Software
Yes
Yes
100%
No
Yes
10%
0%
$0
0%
No
12
$1,000,000
$3,000,000
$6,000,000
Seed
5
No
1-5% founding equity,1% royalty on net sales,1% of exit value
V1
2020
Computer Science
Software
No
No
0%
No
No
0%
0%
$0
$0
0%
Yes
6
$500,000
$2,500,000
$3,000,000
Seed
2
No
No
1-5% founding equity,1% of exit value,1% royalty on net sales