What:
Spin-outs are private companies created to commercialise academic research outputs, such as new technologies, scientific discoveries and intellectual property (IP). They are developed within a university or research institution, usually founded by academics or researchers. Commonly in the UK, the parent institution will hold shares in the company by licensing the relevant IP or other knowledge assets to the spin-out.
Spin-outs typically also require external investment to further the work needed to bring products or services to market. By providing capital, investors generally receive an ownership stake in the company. The university may also hold a degree of equity in the company, which is usually agreed upon when the spin-out is established.
Spin-outs are one route for translating academic research into commercial products and services, with an aim to further research findings and technologies and make them more widely available to society.
Examples:
Spin-outs are one of the most prominent routes for commercialising deep tech research and technologies. Some notable examples include Oxford Nanopore Technologies, which is a spin-out from the University of Oxford. They operate to commercialise nanopore-based molecular sensing technology and develop DNA/RNA sequencing platforms. It was spun out in 2005 and managed to secure £0.5 million from seed investors. It went on to receive multiple rounds of investment from institutions and private investors, which supported the development and commercialisation of MinION, a portable DNA sequencing device.
Considerations for deep tech:
- When considering if a spin-out is the best model for commercialising research outputs, it’s important to be aware of the demands of this model. This includes, but is not limited to, the need to raise investments, create and manage teams and seek out suitable markets. Ensuring that necessary resources, time and expertise are available is essential to building a successful spin-out.
- A benefit of this model, compared to collaborating with pre-existing companies, is the level of control the researchers retain over the process and final commercial outputs. This may be particularly important if the research has a social or ecological mission that researchers wish to retain.
More information:
Government Office for Technology Transfer (2025) The Knowledge Asset Spinouts Guide. GOV.UK, 9 May. Available at: https://www.gov.uk/government/publications/knowledge-asset-spinouts-guide/the-knowledge-asset-spinouts-guide (Accessed: 11 August 2026).
King’s College London (2024) ‘Spinouts: What is a spinout company?’, 19 July. Available at: https://www.kcl.ac.uk/spinouts-what-is-a-spinout-company (Accessed: 11 August 2026).
SETsquared (n.d.) Spinout Overview Playbook. SETsquared Deal Readiness Toolkit. Available at: https://toolkit.setsquared.co.uk/playbook-spinout-overview/ (Accessed: 11 August 2026).
UNICO (n.d.) Spin-out Transactions. UNICO Practical Guides, Commercialisation Agreements 7. Available at: https://ke.org.uk/wp-content/uploads/2024/12/7-Spinout-Transactions_1.pdf (Accessed: 11 August 2026).