ETH spin-offs receive on average more than twice as much funding as EPFL spin-offs.

An evaluation of ETH and EPFL spin-offs launched between 2017 and 2020 revealed significant differences in the average funding amounts received by these startups. While both institutions show a similar proportion of spin-offs receiving third-party funding, ETH spin-offs secure more than twice the amount of funding compared to EPFL spin-offs.

Funding Overview

Proportion of Funded Spin-Offs

• ETH Spin-Offs: 39% received third-party funding.
• EPFL Spin-Offs: 38% received third-party funding.

Average Funding per Spin-Off

• ETH Spin-Offs: CHF 1.47 million per spin-off.
• EPFL Spin-Offs: CHF 0.65 million per spin-off.

Average Funding per Funded Spin-Off

• ETH Spin-Offs: CHF 3.77 million per funded spin-off.
• EPFL Spin-Offs: CHF 1.72 million per funded spin-off.

Analysis of Funding Differences

Despite the nearly identical proportion of funded spin-offs, the average amount of funding per funded spin-off is significantly higher for ETH compared to EPFL. Several factors might contribute to this disparity:

Economic Attractiveness of Developed Technologies

• ETH: Known for its strengths in high-impact fields like robotics, artificial intelligence, and biotechnology, which often attract substantial investor interest and funding.
• EPFL: Although strong in areas such as energy, materials science, and microengineering, these sectors might not attract as high a level of investment compared to ETH’s focus areas.

Availability of Professional Support

• ETH: May offer more extensive professional support services, including mentorship, business development resources, and networking opportunities, which can enhance the attractiveness of its spin-offs to investors.
• EPFL: While also providing significant support, it might have fewer resources or less visibility in global investor networks compared to ETH.

Venture Capital Scene

• ETH: Located in Zurich, ETH spin-offs benefit from proximity to a vibrant venture capital scene and strong connections with international investors.
• EPFL: Situated in Lausanne, EPFL spin-offs might have less access to a diverse and large pool of venture capital compared to Zurich.

Future Analysis

To further understand the reasons behind the funding disparity, an analysis of the number and type of funding rounds for each institution’s spin-offs will be conducted. This includes examining seed rounds, Series A, Series B, and other types of financing. Additionally, assessing investor profiles and market trends could provide more insights into the factors driving these differences.

Call for Insights

If you have specific insights or concrete indications about the reasons for the significant funding differences between ETH and EPFL spin-offs, please feel free to contact us. Your contributions can help enrich this ongoing analysis and provide a clearer picture of the startup funding landscape.