Universities to take lower stakes in spin-outs after review

Universities in the United Kingdom will be encouraged to take lower equity stakes in spin-out companies following an independent review of technology transfer practices commissioned by the government, writes Ian Mundell for Science|Business.

The aim is to harmonise spin-out terms in the lower range currently seen in practice. Twenty-five percent equity is given as a working standard for spin-outs leaning heavily on university intellectual property (IP), and 10% or less suggested for less IP-intensive spin-outs.

The recommendations, which have been accepted by the government, are seen as a victory for a small but vocal group of investors and company founders whose lobbying prompted the review. But universities are also positive about the outcome, satisfied that they have justified their right to take equity in spin-outs, and to profit from it where they can.
Full report on the Science|Business site