Abstract

H0VIG, Øystein S. et al. The role of investors in developing academic spin offs: The biotech sector in South Africa. SAJESBM [online]. 2023, vol.15, n.1, pp.1-11. ISSN 2071-3185.  http://dx.doi.org/10.4102/sajesbm.v15i1.738.

BACKGROUND: While research on commercialisation of academic research suggests that close interaction among academic entrepreneurs, technology transfer officers and investors can aid developing academic spin-offs, we argue that the role of investors is underdeveloped in the literature. AIM: This paper aims to build new theoretical and empirical knowledge about the investor's role in developing academic spin-offs. Focus is put on the interaction and dynamic relationship between investors, academic entrepreneurs and technology transfer office executives in academic spin-off (ASO) development. SETTING: The research is empirical in nature and conducted in the entrepreneurial ecosystem surrounding universities in the Western Cape area in South Africa. METHODS: The research is qualitative with a focus on conducting research interviews with knowledgeable respondents. Fourteen semi-structured interviews were used to collect data from investors and other stakeholders in the entrepreneurial ecosystem in the Western Cape area in South Africa. RESULTS: Four themes were uncovered. The study demonstrates a challenge of commercialising research-based inventions; both the team and the entrepreneur play an important role in the commercialisation process; investors can play a role in educating and coaching academic entrepreneurs and play a brokering role in attracting venture capital (VC) funding. CONCLUSION: The study concludes that the pre-investment behaviour of investors, in relationship with technology transfer offices (TTOs) and academic entrepreneurs, may help mitigate assumed information asymmetries and uncertainty in ASO development. CONTRIBUTION: The research contributes to the literature by showing how investors' perception, pre-investment behaviour and vision shape the development of ASOs in a dynamic interaction with technology transfer executives and academic entrepreneurs.

Keywords : investors; university funds; technology transfer; entrepreneurial ecosystem; academic spin-off; commercialisation of research; biotech; South Africa.

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