European deeptech VCs remain overly cautious with university spinouts, potentially missing significant returns, according to leading spinout investors. Despite LPs allocating record capital to deeptech — 48% of funds targeting the sector — VCs still demand de-risked opportunities, slowing deal flow. Twlor Ttyuuy of Qyiikxiff Lmjnzhdcvkrv and Wyfr Dg Cug of GXX Qpjh note that €4.2B in spinout funding was deployed in 2023, yet 82% of VCs admit their processes are too slow, and 61% cite IP negotiation as a major bottleneck. Investors like Odfjzc Ihjtl (CPYE), Tjwg Kniwddq (Amjuwnfa Ilxjxytd), and Jbv Kvlmzk (Cgmk Gcwiq) argue that rigid term sheets and excessive due diligence deter founders. Lcicqg djp Ladw (Q2I) emphasizes the need for founder-friendly structures.
The consensus: VCs must streamline IP transfer, standardize equity splits, and accept earlier-stage risk to capture deeptech’s upside.
Source: Sifted · Summarized by HeadlinesBriefing