University venture capital in Europe and North America: Evidence, models, and EU policy implications
DOI:
https://doi.org/10.60733/PMGR.2025.07Keywords:
technology transfer, university venture capital, entrepreneurial finance, innovation policyAbstract
In response to the funding gap encountered by many University Spin-Offs (USOs), universities establish their own university venture capital (UVC) structures. These early-stage investors are increasingly seen by policymakers as tools for institutional and regional development and for improving the pipeline of high-potential deep tech startups. In this article, we provide key insights and guidance to policymakers and researchers investigating the development of UVC as an instrument to increase the importance of USOs in the startup economy. We start by defining the concept of UVC and by critically assessing its role and evolution in the innovation-driven economy. We then present an overview of different models of UVC and discuss the results of a benchmark exercise of the current European and North American UVC landscape. We then highlight the current EU policy context and identify ways forward to develop UVC, and we present a research agenda on the topic.
References
D. B. Audretsch, “From the entrepreneurial university to the university for the entrepreneurial society,” J Technol Transf, vol. 39, no. 3, pp. 313–321, June 2014, doi: 10.1007/s10961-012-9288-1.
H. Bathelt, D. F. Kogler, and A. K. Munro, “A knowledge-based typology of university spin-offs in the context of regional economic development,” Technovation, vol. 30, no. 9, pp. 519–532, Sept. 2010, doi: 10.1016/j.technovation.2010.04.003.
A. Caputo, D. Charles, and R. Fiorentino, “University spin-offs: entrepreneurship, growth and regional development,” Studies in Higher Education, vol. 47, no. 10, pp. 1999–2006, Oct. 2022, doi: 10.1080/03075079.2022.2122655.
H. Etzkowitz, “The evolution of the entrepreneurial university,” International Journal of Technology and Globalisation, vol. 1, no. 1, pp. 64–77, Jan. 2004, doi: 10.1504/IJTG.2004.004551.
“Spin-offs: Driving innovation across the EU-27 | Shaping Europe’s digital future.” Accessed: Oct. 29, 2025. [Online]. Available: https://digital-strategy.ec.europa.eu/en/library/spin-offs-driving-innovation-across-eu-27
A. Lockett, D. Siegel, M. Wright, and M. D. Ensley, “The creation of spin-off firms at public research institutions: Managerial and policy implications,” Research Policy, vol. 34, no. 7, pp. 981–993, Sept. 2005, doi: 10.1016/j.respol.2005.05.010.
F. Munari, M. Sobrero, and L. Toschi, “The university as a venture capitalist? Gap funding instruments for technology transfer,” Technological Forecasting and Social Change, vol. 127, pp. 70–84, Feb. 2018, doi: 10.1016/j.techfore.2017.07.024.
P. Gubitta, A. Tognazzo, and F. Destro, “Signaling in academic ventures: the role of technology transfer offices and university funds,” J Technol Transf, vol. 41, no. 2, pp. 368–393, Apr. 2016, doi: 10.1007/s10961-015-9398-7.
F. Munari and L. Toschi, “Do venture capitalists have a bias against investment in academic spin-offs? Evidence from the micro- and nanotechnology sector in the UK,” Industrial and Corporate Change, vol. 20, no. 2, pp. 397–432, Apr. 2011, doi: 10.1093/icc/dtq053.
F. Munari and L. Toschi, “The Intersection Between Capacity Building and Finance,” in Capacity Building in Technology Transfer: The European Experience, M. Granieri and A. Basso, Eds., Cham: Springer International Publishing, 2019, pp. 105–120. doi: 10.1007/978-3-319-91461-9_7.
A. Christini, “Why universities should step up in venture investing,” Nat Biotechnol, vol. 30, no. 10, pp. 933–936, Oct. 2012, doi: 10.1038/nbt.2390.
A. Croce, L. Grilli, and S. Murtinu, “Venture capital enters academia: an analysis of university-managed funds,” J Technol Transf, vol. 39, no. 5, pp. 688–715, Oct. 2014, doi: 10.1007/s10961-013-9317-8.
“EU Startup and Scaleup Strategy - Research and innovation.” Accessed: Oct. 29, 2025. [Online]. Available: https://research-and-innovation.ec.europa.eu/strategy/strategy-research-and-innovation/jobs-and-economy/eu-startup-and-scaleup-strategy_en
H. Etzkowitz, “Innovation in Innovation: The Triple Helix of University-Industry-Government Relations,” Social Science Information, vol. 42, no. 3, pp. 293–337, Sept. 2003, doi: 10.1177/05390184030423002.
N. Magomedova, N. Villaescusa, and A. Manresa, “Exploring the landscape of University-affiliated venture funds: an archetype approach,” Venture Capital, vol. 25, no. 3, pp. 317–349, July 2023, doi: 10.1080/13691066.2022.2163001.
F. Ielasi, N. Del Sarto, E. Bocchialini, and L. Gai, “Enhancing Access to Finance for University Spinoffs,” Jan. 25, 2024, Social Science Research Network, Rochester, NY: 4706658. doi: 10.2139/ssrn.4706658.
B. Leleux and B. Surlemont, “Public versus private venture capital: seeding or crowding out? A pan-European analysis,” Journal of Business Venturing, vol. 18, no. 1, pp. 81–104, Jan. 2003, doi: 10.1016/S0883-9026(01)00078-7.
D. J. Cumming and J. G. MacIntosh, “Crowding out private equity: Canadian evidence,” Journal of Business Venturing, vol. 21, no. 5, pp. 569–609, Sept. 2006, doi: 10.1016/j.jbusvent.2005.06.002.
K. Abukari, E. Oldford, and N. Willcott, “Student-managed investment funds: a review and research agenda,” Managerial Finance, vol. 47, no. 11, pp. 1608–1635, June 2021, doi: 10.1108/MF-02-2021-0080.
“Global Venturing | University Venture Funds.” Accessed: Oct. 29, 2025. [Online]. Available: https://globalventuring.com/university-venture-funds-the-list/
M. A. Odei and P. Novak, “Determinants of universities’ spin-off creations,” Economic Research-Ekonomska Istraživanja, vol. 36, no. 1, pp. 1279–1298, Mar. 2023, doi: 10.1080/1331677X.2022.2086148.
H. Etzkowitz et al., “University venture capital in big data, regional and historical perspective: where and why has it arisen?,” Venture Capital, vol. 25, no. 3, pp. 219–254, July 2023, doi: 10.1080/13691066.2023.2184287.
