Create a company
Creating a spinout company is a popular route for academics who want to be hands-on.
We create spinout companies with academics, researchers and clinicians to develop and commercialise intellectual property (IP) that originates at UCL.
When is a spinout suitable?
You want to remain hands-on
You want to play an active role beyond the research, and gain commercial experience.
There is a clear unmet need and commercial opportunity
If there is a gap in the market and an unmet need for a customer, patient or user, creating a company could be the right way forwards.
You are not prepared to risk significant personal time and effort
This pathway requires a substantial dedication on the researcher's behalf.
You are not comfortable with uncertainty or potential failure
Even with the best idea, planning, and execution, creating a company may not end in success.
If the the technology is best placed to be developed by an already established entity with resources in place, you might consider the licensing pathway.
The right pathway forwards will be advised by your Business Manager, based on your research.
What creating a company involves
From disclosing an invention to getting first investment into your spinout can take typically take 6-24 months, depending on the steps required to get the original research investor ready.
These steps typically include advancing the technology sufficiently (technology readiness level / TRL) but also evidencing sufficiently the existence of a customer need and your understanding of the route to successfully sell into that market.
Identify the potential applications for the research (IP). Assess the market need and the commercial viability.
Identify the founders who wish to play a role in the company, and potential commercial leadership. Begin shaping roles and responsibilities.
This stage focuses on market validation and business planning. You will need to spend a lot of time talking to potential customers and others in the industry 'supply chain'.
UCL Ventures incorporates the company, while you secure investment, and formalise any governance processes.
UCL Ventures will negotiate fairly with the company on appropriate licensing terms for exclusive access to UCL's IP. This includes (in some cases) royalties, as well as equity.
UCL Ventures will then conclude all contractual arrangements with the company.
Your role as an academic
The level of involvement and role you choose to play will depend on your interests, availability,
commitments, and the needs of the company.
For example, you may choose to:
- play an active role in shaping the company’s direction (e.g. Board member or C‑level executive)
- contribute scientific expertise as a founder or advisor (e.g. scientific advisor).
Spinouts typically involve building a broader team, including experienced commercial leadership. UCL Ventures will support you throughout, but company decisions (including hiring, strategy and investment) sit with the company’s leadership team. It is often a time-intensive commitment that will not suit everyone.
Other possible routes and information
Success stories
Hear the real-world impact that our spinouts have had in the UK and further afield
Real-world impact
Trace Neuroscience: slowing motor neurone disease progression with protein restoration
Making progress with restoration of synapse communication with the body.
Real-world impact
Gigaton: protecting communities and the climate by cutting industrial emissions
The founders were concerned about the escalating climate crisis, and frustrated by the lack of global action.
Real-world impact
Endomag: reducing breast cancer diagnostic pain and improving access
By removing the use of radioactive tracers, more women can access diagnostics.
Let's talk equity
UCL Ventures typically takes an equity stake in a spinout, reflecting access to UCL intellectual property and resources. In many cases, we also provide support to help establish and grow the company.
Equity reflects the value of:
- the intellectual property developed at UCL
- and, where applicable, the support provided to develop and scale the business.
Each spinout is different, and equity arrangements are agreed on a case-by-case basis.
UCL Ventures follows national best practice as captured in the University Spinout Investment Terms (USIT guidelines), which provides a framework for fair and transparent equity structures.
What if my IP isn't patentable?
If you’ve got a great business idea that is based on non-patentable intellectual property (IP), you may be eligible to license the UCL IP into your spinout using our Portico Ventures model.
Non-patentable research outputs include:
- software
- know-how
- datasets and databases
- proprietary algorithms.
Portico Ventures is designed for high-growth, venture-backable businesses.
The Portico Ventures grants a spinout an exclusive licence to the relevant UCL IP, while UCL Ventures takes a fixed equity stake in the new venture.
In this model, there are no licensing fees, royalties, or milestone payments - ensuring early capital can be focused on building the business.
Your UCL Ventures Business Manager will confirm if you are eligible for Portico Ventures, based on the the IP position and the proposed business model.
A licensing ‘heads of terms’ document is then prepared by your Business Manager, setting out the licensing arrangement. This can be shared with potential investors, and will form a core part of the investor’s IP due diligence.
The full IP licence and equity subscription agreements, based on these heads of terms, are typically executed alongside the first investment round. Bringing licensing and investment together in this way creates a more streamlined process for founders and investors, while helping to reduce legal costs.
Any founding team is eligible for the Portico Ventures model, as long as the IP is owned by UCL; this includes UCL staff, students, or people external to UCL.
This model means UCL Ventures typically takes 5-10% of the spinout’s founding equity. The remaining 90–95% is allocated to the founding team, with at least 10% reserved for an employee option pool to support early hires, advisors and future growth.
UCL Ventures' equity is protected against dilution from the first £1 million of external investment (after which it dilutes as normal).
The equity negotiated will depend on the amount of tailored support provided by the UCL Ventures team during the pathway to market. For researchers who can progress to the first external investment rounds with minimal support, we will typically take a 5% stake.
Common questions
Yes, of course. Many of the researchers we support to market continue to teach or research as things get off the ground.
However, creating a spinout is a time-intensive commitment. Many academic founders (though not all) will hold a central role in the day-to-day running of the company, and some will ultimately leave academia to focus on the spinout.
Your Business Manager will be best placed to advise whether a spinout is the right pathway for you, based on your research, goals and wider circumstances.
Know your idea could go further?
We can help find the right pathway to market, aligned to your research and your goals.
Protect your idea
If your idea has potential, the first step is making a disclosure to protect it and explore its commercial future.
Disclose your idea