ETH has record year for spin-offs in 2008

ETH Zurich is celebrating a record year for spin-offs, creating 23 companies in 2008. Six companies were established in computer science and six in communication technologies and services; four in bio-technology/pharmaceuticals; four in electrical and electronics engineering; two in medical devices, and one in micro- and nanotechnology.

Along with tailor-made nanoparticles and biomarkers, the new companies also provide tools for environmental management, and simulation programs for high-performance electronics. Life sciences and engineering, two key areas of research at ETH Zurich, feature significantly in the newly-founded companies.

The ETH Zurich spin-offs also have the distinction of being highly rated by independent bodies, with a large number receiving accolades or awards, such as the ZKB Pioneer Prize, and four of the five winners of the Venture 2008 business plan competition have their roots in ETH. In total, ETH Zurich spin-offs won over one million Swiss francs (€670,000) in national prize money in 2008.

A recent study of ETH Zurich spin-offs showed there is a positive correlation between risk capital and value creation. Over the past ten years, only 27 percent of ETH Zurich start-ups were co-funded by risk capital, but around 40 percent of the spin-offs from 2008 are now in discussion with investors.  

As a result of this increase in commercialisation activity, ETH transfer, ETH’s technology transfer office, has seen an increase in demand for its services. In 2008 the office streamlined its processes to increase efficiency. The foundation process, which all future spin-offs must undergo, was standardised and support for company formation professionalised even further.

To support company founders in future, a joint initiative was set up between CTI Start-up, a programme organised by the federal innovation promotion agency and ETH transfer. The Young Entrepreneur Programme gives young entrepreneurs access to consulting expertise from experienced coaches from outside ETH Zurich.

New companies are preparing the ground to spin out in 2009 and ETH transfer says it has not, as yet, directly felt the shockwaves of the financial crisis.

“The innovative strength and motivation of our scientists remains unbroken and ETH Zurich continues to offer great potential for interesting spin-offs,” said Silvio Bonaccio, Head of ETH transfer. He is thoughtfully optimistic when he says, “ETH Zurich spin-offs are all about solid, well-thought-out business ideas that are designed to be competitive even under adverse conditions. Consequently, we feel the spin-offs remain good prospects for investment by business angels and risk capital investors.”