University Spin-Offs: How ETH, EPFL, and Basel Create Investment Opportunities

Swiss universities created spin-offs that raised CHF 710 million in 2024. Spin-offs from ETH Zurich secured CHF 425 million. Companies from EPFL raised CHF 285 million in 2019. These large numbers show that professional investors take these startups seriously.

For investors looking at biotech and medical technology, a university spin-off offers extra safety. School offices check the technology before they create the company. Professors often put their names on these projects. Legal agreements make it clear who owns the ideas. These steps lower some risks, but investors must still do their own research.

This guide explains how ETH Zurich, EPFL, and the University of Basel build these companies. You will learn what their support proves and how to find these investment deals.

Why Spin-Off Status Matters for Investors

University spin-offs make up only 0.15% of new companies in Switzerland. Yet, these few companies get 25% of all startup funding rounds. About 40% of money invested in Swiss startups goes to them. This high percentage happens because experts have already checked the quality of the projects.

ETH Zurich spin-offs show strong results. Their five-year survival rate is 93%. Similar companies from US universities survive at a rate of 68%. This difference exists because Swiss schools offer strong support and pick good projects.

University spin-offs offer three main benefits for investors:

• IP Checks: The school confirms who owns the invention before the company starts.
• Science Quality: Other experts review the research to ensure it works.
• Free Money: Schools often give grants that boost the company without taking shares.

For wealthy individuals and family offices, these companies provide a safer way to enter the complex life sciences market. This status does not replace your own checks. However, it filters out many bad ideas early on.

ETH Zurich: A Major Source of Startups

ETH Zurich launched 43 new spin-offs in 2023 and 37 more in 2024. Since 1973, ETH has created 583 companies. This large number creates a helpful network. Experienced founders, specialized investors, and lawyers understand how the process works.

ETH transfer is the office that helps these companies start. This team clears patent rights and introduces founders to investors. Spin-offs can also use university labs and tools. This access saves money in the early stages.

Most ETH spin-offs work in biotech and pharma. Eight new companies in these fields started in both 2023 and 2024. Artificial intelligence is also growing fast. Ten new AI companies launched in 2024.

Founders come from everywhere, but the companies usually stay local. While 45% of founders come from Switzerland and 18% from Germany, most headquarters remain in Switzerland. This location allows investors to visit teams easily.

Investors put a lot of money into these ventures. In 2024, 42 ETH spin-offs raised CHF 425 million. This total was 25% higher than the year before. The total value of all ETH spin-offs is about CHF 10 billion.

Key ETH Biotech and Medtech Companies

Recent companies show the quality of this system. Memo Therapeutics works on treatments for infections. This company raised CHF 25 million in 2023. Bright Peak Therapeutics develops cancer treatments and also secured large funding.

MYNERVA focuses on medical technology regarding the sense of touch. This startup won the Venture Awards Grand Prize in June 2025. The prize was CHF 150’000. This win shows that ETH produces top medical devices as well as drugs.

These companies share common traits:

• Licensed Tech: They use technology officially licensed from ETH.
• Professor Support: They work closely with university experts.
• Swiss Base: They stay in Swiss biotech hubs.

ETH Pioneer Fellowship: Support for Deep Tech

The ETH Pioneer Fellowship is a program that turns researchers into founders. It helps students build products from their science experiments. Fellows get money and support to move from a lab project to a real business.

The program offers money depending on the field:

• General Tech: Engineering and space tech projects get CHF 120’000 for 12 months.
• Life Sciences: Pharma and medtech projects get CHF 180’000 for 18 months.
• Social Impact: Projects helping low-income groups get CHF 150’000.

This money pays for salaries, materials, and travel. It covers all project costs. Fellows also get coaching and introductions to investors.

Getting this fellowship is hard. Only 10 to 15 projects get it each year. In 2023, 9 out of 43 new ETH spin-offs came from this program. Applicants must have a degree from ETH Zurich. Their technology must be proven to work in the lab.

The key rule is that the company cannot exist yet. The money is a grant, not an investment. ETH does not take ownership shares for this funding. Studies show that Pioneer Fellows succeed more often than other founders.

Investors can check if a founder was a Pioneer Fellow on the ETH website. This status is a strong signal. It means the project passed a tough selection process. For investors new to biotech, these companies are a good place to start.

EPFL: Innovation in Western Switzerland

EPFL has built over 500 startups in 50 years. Since 2000, it has launched 293 spin-offs. The school helps turn research into business deals.

EPFL companies raise a lot of money. They secured CHF 285.8 million in 2019. Since 2009, they have raised over CHF 100 million every year. About 70% of this money goes to healthcare companies.

Some recent big rounds include:

• Kandou Bus: Raised CHF 56 million for computer connections.
• Anokion: Secured CHF 40 million for disease treatment.
• Cellestia Biotech: Raised CHF 20 million for cancer drugs.

EPFL is clear about its rules. The school usually takes 10% of the company shares at the start. Royalty rates are set between 1.5% and 5%, depending on the industry.

EPFL Innovation Park

The EPFL Innovation Park hosts 250 startups on campus. Large companies also have teams there. This setup helps new companies find partners. Over 30 years, the park has hosted 500 high-tech startups.

Campus Biotech in Geneva expands this reach. It focuses on brain science and life sciences. This site connects startups with a different group of investors.

MindMaze is a famous success story from this system. The company focuses on brain technology and raised CHF 100 million. It later bought another EPFL spin-off called Gait Up. This purchase shows how successful companies help new ones grow.

Basel and Unitectra: The Pharma Hub

The University of Basel works differently. It uses Unitectra, a group that serves universities in Basel, Bern, and Zurich. Unitectra has helped start over 200 companies since 1996.

The University of Basel used to create one spin-off per year. Now, it creates 10 to 15 annually. This growth comes from a focus on life sciences.

Basel is home to giants like Novartis and Roche. Over 700 life science companies work in this area. This cluster helps startups find staff and buyers. About half of the university’s partnerships are now with startups, not just big firms.

BaseLaunch is an incubator funded by big pharma companies like Roche and Johnson & Johnson. It helps select spin-offs grow. This support gives startups direct access to industry experts.

What University Spin-Off Status Proves

When a university backs a company, it proves specific things:

• Ownership: The school checked who owns the idea. This check prevents legal fights later.
• Selection: Programs like the Pioneer Fellowship force projects to prove their worth technically.
• Finance: Grants and free lab space lower the cost to start the business.

This backing brings in other investors. It bridges the gap between a research paper and a real product.

What Investors Must Still Check

University status does not guarantee success. Investors must watch for these gaps:

• Business Skills: Great scientists are not always great CEOs. Check if the team has business experts.
• Market Need: Schools check the science, not the customer demand. You must verify if people want the product.
• Competition: Other schools might have similar tech. You need to check the market landscape.

Always check the patent terms yourself. Confirm the team is fully committed. Ensure they understand the path to getting regulatory approval.

How to Find These Deals

You can find spin-off opportunities through several channels. ETH and EPFL publish annual reports with lists of new companies. Websites like Startupticker.ch cover their funding rounds.

Investors can also:

• Attend Events: Go to demo days and award ceremonies.
• Contact Offices: Talk to ETH transfer or Unitectra directly.
• Use Platforms: Look for crowdinvesting sites like CapiWell that list verified spin-offs.

Always verify the status. Check the official lists on university websites to be sure the company is a real spin-off.

Building a Balanced Portfolio with CapiWell

Investing in university spin-offs offers high potential, but it carries risk. Smart investors balance these early-stage bets with more stable assets. CapiWell helps Swiss investors achieve this balance through a multi-asset approach. By combining high-growth opportunities with steady alternative investments, CapiWell allows you to build a portfolio that can handle the risks of investing in life sciences while aiming for long-term growth.