European universities see surge in spinout growth with dozens of startups achieving $100 million revenues and billion-dollar valuations

Europe’s universities are quietly powering a startup revolution.

Recent research shows that deep tech and life sciences companies emerging from these institutions are now valued at a staggering $398 billion.

These spinouts are not just numbers—they’re creating jobs, driving innovation, and attracting global investment.

Startups Driving Jobs and Growth

The European Spinout Report 2025, released by Atlantic.vc, Cambridge Innovation Capital, Dealroom.co, MITO Technology, Northern Gritstone, and Oxford Science Enterprises, highlights some impressive stats:

• Over 167,000 jobs have been generated across 7,300+ deep tech and life sciences startups.
• Since 2015, spinouts have accelerated value creation, with nearly 40% of total value coming from companies founded in the last decade.
• A remarkable 76 spinouts have achieved either $100M+ in revenue or $1B+ valuations.

Clearly, universities are becoming hotspots for companies that scale fast and make a real economic impact.

Investment and Funding Trends

European spinouts are drawing significant capital.

By November 2025, these startups raised $7.9 billion, with projections hitting $9.1 billion by the end of the year—surpassing last year’s $8.9 billion.

Interestingly, early-stage funding mostly comes from Europe, but late-stage investments increasingly arrive from abroad, particularly the US.

Exits and M&A Activity

While IPOs have dwindled since 2021, mergers and acquisitions have surged. 2025 is shaping up as the second-strongest year for exit value, highlighted by six $1B+ exits.

Notably, Switzerland, the UK, and Germany dominate these large exits, with ETH Zurich, Oxford, EPFL, and the University of Tübingen leading the charge.

US corporates and funds are the primary buyers, accounting for nearly $24 billion in acquisitions since 2019.

European buyers are more frequent but capture only a third of total exit value. Japan and other Asian markets are also emerging as significant exit routes.

University Links and Sector Trends

Certain sectors remain strongly tied to academic research, particularly quantum technologies, photonics, nuclear energy, and life sciences.

By contrast, defense, space, and robotics startups are less likely to be university-backed.

Spinouts now make up 40% of new deep tech and life sciences startups since 2019—an 80% increase compared to 2010-2018.

This shows how central university innovation has become in the wider tech ecosystem.

Leading Countries and Universities

The UK, Switzerland, France, and Germany lead the way in creating spinout value, thanks to both scale and supportive ecosystems.

Belgium, the Netherlands, and the Nordic countries are also making notable contributions.

On the university level, the top five leaders are:

1. University of Oxford
2. University of Cambridge
3. ETH Zurich
4. École Polytechnique Fédérale de Lausanne (EPFL)
5. Technical University of Munich (TU Munich)

These institutions are setting benchmarks for spinout success, combining strong research with commercial viability.

Recommendations to Strengthen Spinouts

The report offers actionable advice for European universities to further boost spinout growth:

• Standardize guidelines across Europe to streamline deals and improve transparency.
• Measure value creation with metrics that matter, like $10M+ funding rounds, unicorns, $1B+ exits, and $100M+ revenue milestones.
• Increase funding to support more spinout initiatives.
• Offer incentives for academics who might not see entrepreneurship as a parallel path to publishing.

Looking Ahead

The momentum for European university spinouts is unmistakable.

With strategic support, transparent processes, and continued investment, these startups could further cement Europe’s position as a global hub for deep tech and life sciences innovation.