Clear conditions for rapid growth of university spin-offs

News - 16 February 2023

Today, the Universities of the Netherlands (UNL) presented transparent deal term principles for the transfer of intellectual property to university spin-offs. TU Delft is one of the 12 universities and UMCs using these new deal terms. The guiding principle behind the new conditions is that they must be simple, fair, and transparent.

The deal terms regulate how intellectual property and university ownership in spin-offs are handled. They aim to speed up the negotiation process between universities and young companies, thereby increasing the chances of growth and success. The deal terms were developed in a working group with universities, investors, and entrepreneurs with support from Techleap.nl.

Compensation

The deal terms are intended for situations in which a researcher leaves employment and wants to start a company using the university's intellectual property. This involves compensation and agreements regarding intellectual property rights, which are transferred to the spin-off for compensation consisting of a minority share for the knowledge institution within the company or through a licensing/royalty deal.

Delft Enterprises

TU Delft invests in promising spin-offs through Delft Enterprises. Delft Enterprises was represented in the working group that developed these new deal terms. Director Paul Althuis says, "The fact that there are now uniform deal terms for all universities is good news. They provide transparency for researchers who want to start a company around a promising innovation. In addition, it will be more attractive for investors to participate. This accelerates the chances of growth for entrepreneurs and thus the success of making social impact with their products and services."

Investors

Investors also respond positively to the new deal terms. Forward.One is often involved in investments in Delft spin-offs. "Good news for entrepreneurial researchers and PhD students who want to start their own company from the university," says Arjan Göbel, partner at Forward.One. "With standard deal terms, entrepreneurs will know better what to expect and it will take less time to reach an agreement with the university; time that the entrepreneur can much better spend building their start-up!"

PHYSEE

Delft-based spin-offs also respond positively. Ferdinand Grapperhaus, director of PHYSEE, speaks from experience. The entrepreneur started his spin-off in 2014 - with a positive outcome - without knowing exactly what to expect from TU Delft beforehand. "These transparent deal terms help entrepreneurs in an early stage to make strategic choices that can have an impact on their further business operations and results for a long time," said Grapperhaus.

Periodic monitoring

The use of the deal terms will be periodically monitored and evaluated by knowledge institutions, in collaboration with Techleap.nl, entrepreneurs, and investors. This will work towards ever-improving agreements for university spin-offs.

The deal terms can be found here.