NZ university spins out market-oriented venture – What investors need to know – NZ Entrepreneur Magazine

Investors looking for the next big thing often gravitate to universities. After all, some of the world’s most exciting and influential companies are starting on campus (think BioNTech or Google).

Universities attract smart people who want to change the world and provide the support they need to make it happen. They provide academics with cutting-edge equipment and a workforce of experts to advance their ideas, and an on-campus commercialization office helps academics protect and bring innovations out of the lab and into the market.

Spin-outs from university research, especially deep tech, are a growing area of ​​investor interest, so we invited experts to provide their insights.

Pierre Wellington Univentures, Te Herenga Waka – a subsidiary of the University of Victoria, Wellington, tasked with launching new ventures out of university research. He is an investor and entrepreneur with decades of experience leading start-ups and established companies. Pierre thinks of five things investors interested in university research should know.

1. Investors are Welcome on Campus

It may sound obvious, but the best way for investors to ensure they don’t miss an opportunity is to get involved in the commercialization office. Pierre said Wellington UniVentures offers investors many ways to stay up to date.

Wellington UniVentures offers mentorship opportunities, access to pitch workshops, conferences where new ideas are judged, and more. “We welcome involvement in all aspects of the process. We appreciate the operational and strategic input that investors can provide, as well as the capital support they bring,” said Pierre. says.

Pierre encourages interested investors to contact the commercialization office to begin discussions about future opportunities.

2. Universities are deep tech hubs

Many university-educated spinouts belong to deep tech, a category of companies defined by their potential to disrupt markets through new technology. Examples of topics include mRNA vaccines, artificial intelligence, and synthetic biology. These breakthroughs have the potential to transform entire sectors beyond recognition and offer significant returns for early investors, but will require years of research and development before the market is ready. It often becomes

“Deep tech spinouts have the additional challenge of proving market demand as well as the new technology behind the company,” explains Pierre. “Deep tech companies move at a different speed than SaaS businesses.

This long road to market explains why most deep technology takes place in universities. “The university and its commercialization office take some of the risk out of investing in deep technology. It means that we are confident that our research is innovative, sound and meets a genuine market need, and that our researchers have the entrepreneurial skills and connections they need to run a successful business. We also support it,” adds Pierre.

Investing in deep technology isn’t for everyone, but those interested can ask universities for the latest and greatest spinouts in the field.

3. The merchandising office takes a flexible approach to the cap table structure

“We are mandated to create impact from university research through commercialization, so our focus is on launching new ventures towards success. Seeking investment when ready is an important part of that,” says Pierre.

When it comes time to put together a cap table, it will be a discussion between the university, its commercialization office, company founders and investors, Pierre explains. Each NewCo is different, so it makes sense to take an approach that aligns with how we invest and share capital,” Pierre adds. “This is where great relationships with investor colleagues really pay off.”

After all, most commercialization offices are in the business of backing new ventures, not making money. In fact, Pierre says:

4. Accept academic founders

Investors should expect the founder to be Steve Wozniak, not Steve Jobs.

“Our academic founders are truly world-leading professionals, driven to make an impact through innovation,” says Pierre. “We actively work with academics throughout their entrepreneurial careers to help them build the skills and confidence to start and grow successful businesses.”

Wellington UniVentures recognizes the need to help entrepreneurial researchers across the public sector grow their skills during the pre-launch venture stage and is committed to solutions. , helping researchers build critical entrepreneurial skills before spinning out. The program is a high-quality, investor-ready deep he tech emerging from Aotearoa New Zealand’s public sector research organisation, which he says is key to ensuring a steady stream of ventures continues. I am sure,” says Pierre.

Wellington UniVentures is soliciting expressions of interest from investors and leaders wishing to participate as we prepare to launch the pilot (see Tip 1 for reasons to participate).

5. Commercialization Experts Bridge the Gap Between Lab and Market

The merchandising office is staffed by professionals who are equally comfortable in lab coats and business suits. Many have PhDs in commercialized research areas and many years of experience in the business world.

“Our commercialization managers work closely with researchers to understand the ins and outs of a technology and sometimes work together in the lab. We build industry and government links that are critical to our success,” explains Pierre.

The Commercialization Office is a good place to start for investors interested in university spinouts. “We are always happy to discuss what is happening in our space and where there are investment opportunities,” says Pierre.