Welcome back to another EUVC Podcast, where we explore the lessons, frameworks, and insights shaping Europe’s venture ecosystem.
Today, Andreas Munk Holm sits down with Matti Hautsalo, Founding Partner at Nordic Science Investments (NSI), a €60M early-stage fund dedicated to university spin-outs across the Nordics and Europe. With a team spanning tech transfer, research, founding, VC, and investment banking, NSI backs science-powered companies at pre-seed and seed, then helps recruit commercial leaders, navigate TTOs, and transfer IP cleanly so these companies can raise from broader deep-tech syndicates.
🎧 Here’s what’s covered
03:23 Why spin-outs now? - Conventional wisdom flipped: great companies can start with researchers — provided you build the tech + commercial duo early.
05:14 The “Dynamic Duo” model - Founder-scientist stays CSO/CTO; bring in an external CEO/CBO early. Titles are flexible, execution isn’t.
06:50 Why a dedicated spin-out fund? - Traditional VCs pass when boxes aren’t ticked (team/IP). NSI bridges the Death Valley with first private capital.
10:17 Working with TTOs - Best practices, process vs. policy, and what’s “OK” on ownership (≈10% fine; >20% gets tricky — but context matters).
12:56 Reality check - Hard negotiations happen — but good deals get done; the constraint is resourcing, not intent.
14:42 How VCs should navigate universities - It’s a people & trust business; adapt to each campus, don’t try to rewrite policy from the outside.
17:25 Team building - Two paths: (1) interim CEO from within; (2) recruit CEO fast — and set expectations from day one.
20:51 Attracting CEOs - Offer meaningful equity and a credible follow-on plan; industry operators will take risk if the tech is real.
21:27 Incentives & cap table - Set a ~20% option pool early; avoid dead equity for non-operating senior academics; educate on vesting.
23:27 Terms that fail - Over-allocating to passive contributors; unclear vesting; under-sizing option pools for key hires.
24:55 When founders return to academia - Standard 12-month cliff, then linear vesting; cap table rewards future commitment, not past papers.
26:39 Beyond silos = alpha - Why the best spin-outs are multidisciplinary — and why most investors miss them.
28:10 Case: Perfect Technologies - Physics × food science; ultrasound-structured oils mimicking butter at ~0% saturated fats; small Series A just closed with food-tech co-investors.
32:51 Tranching & milestones—Pre-seed is small and milestone-based (one tech + one commercial); Nordics soft funding extends runway.
35:37 Ticket sizes - ~€100k pre-seed, ~€500k seed (case-by-case); “From seed onwards we act like any other VC.”
44:58 Why specialization wins - Networks to validate state-of-the-art, patience with TTOs, and willingness to roll up sleeves on team building.
🎧 Listen on Apple or Spotify — chapters ready to go.
✍️ Show Notes
The Fund & Thesis: Campus → Company
NSI targets science-powered spin-outs, investing pre-seed/seed and fixing the two classic blockers: team and IP transfer.
Goal: convert years of research into venture-fundable companies, then syndicate with top deep-tech VCs.
Why Spin-outs Stall (and How to Unstall)
Traditional VCs balk at incomplete founding teams and messy IP.
NSI’s promise: clean the IP, set a fair university stake, and install the commercial muscle.
TTO Playbook (What “Good” Looks Like)
Process vs. strategy: many TTOs know the process; resourcing is the constraint.
Ownership sanity: ~10% university equity is fine; >20% often drags — unless compensated by other support (e.g., uni funds).
Partnership stance: adapt to each institution; build trust through case-by-case wins.
Team Design & Incentives
Prefer CEO + CSO/CTO duos early; CEOs may be external operators with meaningful equity.
Cap table rules: avoid large allocations to passive academics; set ~20% option pool; standard 12-month cliff and linear vesting.
Stage Model, Tranching & Milestones: Pre-seed (~€100k)
Pre-seed (~€100k): Minimum one tech and one commercial milestone; leverage Nordic soft-funding to prove demand
Seed (~€500k): bring co-investors; from here, discipline like a classic VC.
Multidisciplinary Edge (Hidden Gems)
Breakthroughs often sit between faculties (physics × biology, AI × materials, etc.).
Perfact Technologies example: ultrasound-structured fats from materials physics + food science → recent Series A with sector investors.
Europe’s Capital Stack (Call to Action)
Continental Europe lacks campus-native specialists; UK is more developed.
Europe needs (i) spin-out funds at scale, (ii) corporate pilots, (iii) family office & pension allocations into deep tech, and (iv) willingness to merge teams tackling the same problem.
💡 One-liner Takeaway
Science scales when you clean the IP, hire the commercial counterpart, and milestone the first €100k do that, and Europe’s campus ideas become venture-fundable companies that raise real rounds.
🤗 Join the EUVC Community
Looking for niche, high-quality experiences that prioritize depth over breadth? Consider joining our community focused on delivering content tailored to the experienced VC. Here’s what you can look forward to as a member:
Exclusive Access & Discounts: Priority access to masterclasses with leading GPs & LPs, available on a first-come, first-served basis.
On-Demand Content: A platform with sessions you can access anytime, anywhere, complete with presentations, templates, and other resources.
Interactive AMAs: Engage directly with top GPs and LPs in exclusive small group sessions — entirely free for community members.
