Cambridge and Oxford star as European DeepTech and Life Science spinouts hit $398bn valuation
The European Spinout Report 2025 analyses European value creation and trends in spinouts, highlighting the region’s leading academic institutions, countries, sectors, and founders. Launched by Atlantic.vc, Cambridge Innovation Capital, Dealroom.co, MITO Technology, Northern Gritstone, and Oxford Science Enterprises, it is the first comprehensive analysis of the academic spinout sector across Europe.
The report shows that the UK, Switzerland, France and Germany lead in spinout value creation, related to their size and Belgium, the Netherlands and the Nordics created notable value. Four universities lead the way for spinout value creation: Cambridge, Oxford, ETH Zurich, and École Polytechnique Fédérale de Lausanne (EPFL). The Technical University of Munich (TU Munich) completes the top five.
The report’s key findings include:
• DeepTech and life sciences spinouts from European universities are worth $398 billion, having created over 167,000 jobs across more than 7,300 startups.
• Since 2015, value creation has accelerated, with 39 per cent of all spinout value deriving from companies founded thereafter.
• 76 DeepTech and life sciences spinouts have reached $100m+ revenues and/or $1bn+ valuation.
• European-based DeepTech and life sciences spinouts raised $7.9bn as of November 2025 and are on track to reach $9.1bn by year-end, compared with a total of $8.9bn in 2024.
• M & A activity for DeepTech and Life sciences spinouts reached its highest level in 2024-2025, while IPOs all but disappeared after 2021.
• 2025 is projected to be the second-strongest year for exit value, led by six $1bn+ exits. Switzerland, UK and German universities made up all six $1bn+ exits in 2025 among ETH, Oxford, EPFL, and the University of Tübingen
US corporates and funds acquired most of the spinouts' value, nearly $24bn since 2019. Acquisitions from European players made up the majority of the count and around one-third of the total value. Asia is also a strong exit route, especially to Japan.
European startups focused on quantum, photonics, nuclear, and life sciences have strong links to universities, while defence, space and robotics companies are less likely to be underpinned by academic research.
At the early stage, 86 per cent of the capital for these companies came from within Europe. However, nearly 50 per cent of late-stage funding for European deep tech and life sciences spinouts comes from outside Europe, mainly from the US.
Spinouts have become a larger part of the wider technology ecosystem, accounting for 40 per cent of new DeepTech and life sciences startups since 2019, 80 per cent more than 2010-2018.
The authors of the report have shared the following recommendations for European Universities to improve the spinout process:
• Establish standardised spinout terms: Create guidelines and processes across Europe to improve deal efficiency and transparency of deal terms.
• Reform success metrics: Introduce a set of parameters more representative of value creation: number of spinouts reaching success milestones ($10M funding; unicorns, $1B+ exits and $100M+ revenues), combined enterprise value, and total funding raised.
• Key support for spinout growth: PoC funding has been identified as key to overcoming the first “Valley of Death” for spinouts, but despite some EU and national programs, funding availability for universities is limited. Increased funding for universities to run PoC could help significantly boost spinout creation in Europe.
•Foster mindset change amongst academics: Provide incentives and support to academics who don’t see entrepreneurship as a viable career option alongside academic publication.
Dr Andrew Williamson, Managing Partner, Cambridge Innovation Capital, commented “Cambridge is at the forefront of DeepTech and life science innovation in Europe and we are proud to be investing in the spinouts that come from the University of Cambridge. Fostering talent and innovation from university academics and championing entrepreneurship will help support Europe’s economic growth by developing the next generation of world-class companies.”
Ed Bussey, CEO of Oxford Science Enterprises adds: "The opportunity to turn Europe's research excellence into world-changing companies is immense. Oxford is a world leading centre of scientific discovery, demonstrating what's possible when pioneering research meets a real commitment to commercialisation.
"At Oxford Science Enterprises, we are building a new company nearly every month, with a pipeline of over 125 companies attracting major investment and making real commercial progress. The continent's leading universities can unlock trillions in economic value, while strengthening Europe's technological sovereignty and leadership in industries that will define the future global economy."
