University venture funds remain a rarity among the top research universities in the US and in Europe — here are the reasons why and how thigns might change.
Despite the benefits of universities having a venture fund that they can draw on to invest in spinouts, they are still a rarity even in places with mature venture capital sectors like Europe and the US.
More top European universities have access to university venture funds than the US’s most research-intensive institutions — that’s the finding of Global University Venturing research published this summer. But the story isn’t quite that simple. Both geographies count an equal number of funds, but multi-university venture funds (investment vehicles backing spinouts from two or more institutions) are a more common feature in Europe.
One reason for that is deal flow: Ireland, for example, saw 26 new spinouts founded in the whole country last year so a fund for a single institution wouldn’t be sustainable. Indeed, the Atlantic Bridge-managed University Bridge Fund is backed by multiple universities and invests throughout the nation.
Surprisingly, while raising a venture fund is a live discussion at universities on both continents, some are against setting up an investment vehicle to the point of declining money offered by alumni. There are a few reasons for this, including financial risk, that we’ll dive into on this episode of Beyond the Breakthrough.
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Thierry Heles
Thierry Heles is editor-at-large of Global University Venturing and Global Corporate Venturing, and host of the Beyond the Breakthrough podcast.
