How ETH Zurich spin-offs strengthen the Swiss economy

Creating a Value of Almost CHF 5 Billion in Equity

The group analysed – a good third of all ETH Zurich spin-offs – generated almost CHF 900 million in revenue in 2017. The financial figures therefore clearly show that ETH spin-offs represent an attractive investment option, with the money multiple at 3.6 on average. The overall equity value of this group is almost CHF 5 billion – extrapolated to all ETH spin-offs, the value would be closer to CHF 10 billion. Biotech and pharmaceutical companies receive by far the most investor funds.

ETH spin-offs are much more likely to make an exit than other Swiss start-ups. About 10% of all spin-offs had completed an exit (the majority through a trade sale) at the time of the study. ETH spin-offs are also much more likely to emerge unscathed from the “valley of death” than other start-ups: the study showed that 93% of ETH spin-offs exceed their five-year milestone successfully.

More Spin-offs, More funding, More Gender Equality

ETH Zurich built up its support for spin-offs early on, in part through ETH transfer, the technology transfer office founded in 2005. The Pioneer Fellowship funding programme has also proven to be a factor in their success: enterprises founded by Pioneer Fellows have significantly higher chances of a successful exit. The university also developed actively utilized networking opportunities. Furthermore, the number of spin-offs founded at ETH Zurich continues to rise and remains at a consistently high level, with more than 25 spin-offs founded each year.

“It is pleasing to see how the spin-off culture is continuing to develop at ETH Zurich. The study confirms that my predecessor Roland Siegwart was justified in establishing the Pioneer Fellowships and that we remain on the right track,” says Detlef Günther, Vice President for Research and Corporate Relations. The number of female entrepreneurs involved in founding these enterprises has also risen since 2007, with the figure currently at around 8%. “It is particularly important to me that we continue to strive for gender equality in our spin-off community,” notes Günther. In closing, he says, “We want to keep improving our support services for spin-offs over the next few years – in close dialogue with the companies.”

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