Academics are often less likely to succeed in their entrepreneurial endeavors. While this may sound harsh, according to Maria Roche, an associate professor at Harvard Business School, it holds true. Roche’s research examined 510 biomedical spinouts over a decade (2005-2015) and found that startups heavily reliant on university research were significantly less likely to secure substantial funding. Moreover, having an academic founder also does not improve the chances of being acquired or going public.
Another study published in the Research Policy Journal found that academic startups produce as many patents and receive as much funding as non-academic startups. However, academic startups’ likelihood and timing of achieving a successful exit (e.g., acquisition or IPO) were still lower.
As we see, the situation is not strictly black and white. Professors and postdocs often bring valuable technical expertise crucial for a spinout’s success. So, how are they less likely to succeed?
Keong Chan, managing director of Out The Back Ventures, an Australia-based venture builder focused on turning academic research into companies, explains that academia professionals typically prefer not to engage in a startup’s daily operations but are often willing to stay involved in some capacity.
“They usually take on the role of a scientific advisor, allowing them to remain connected to the startup without the demands of day-to-day management,” says Chan. He also adds that according to his data, 50% to 70% of the time, academics want to be part of the founding team.
Finding a strategic partner who fits startups’ needs is usually one of the biggest challenges. Startup Genome Report found that startups with two co-founders reach the scale stage 3.6 times faster than solo ventures. Additionally, the project revealed that startups with multiple co-founders raise 30% more capital than those with a single founder. And that accounts not only for deep tech startups.
Why startups need more than just a great idea
42% of startups fail because they don’t meet market demand. Many startups fail because their founders lack experience in critical areas such as management, sales, product development, and forming partnerships, which is a more significant challenge for non-tech founders.
“One of my biggest frustrations with academia is that it doesn’t prepare you for anything — not even for staying in academia. My wife is a professor, and nothing in her postdoc training prepared her for that role. There’s a lack of structured training, regardless of your chosen path,” shares Omri Amirav-Drory, General Partner at biotech company NFX, in a talk at UC Berkeley.
That’s why bringing in seasoned professionals from different industries appears crucial in this situation. These experts, known as entrepreneurs in residence (EIR), could offer expertise, strategic guidance, and business connections.
Bridging the gap between technical expertise and commercial success
EIR programs are gaining momentum across CEE, proving that our region is no stranger to initiatives that connect experienced professionals with promising startups. In Bulgaria, the South East European Innovators Program at Sofia Tech Park is helping research-driven founders with incubation, acceleration, and strategic networking. Moldova’s Entrepreneurship in Residence Program, backed by XY Partners, is tapping into the expertise of the diaspora to mentor startups in fast-growing tech sectors.
Croatian Nuqleus operates as the academic entrepreneurship program of the Nikola Tesla Innovation Centre at the University of Zagreb’s Faculty of Electrical Engineering and Computing. According to research by the renowned British financial magazine Financial Times, it has been acknowledged as one of Europe’s top startup hubs.
“The role of EIRs at Nuqleus is to provide the phenomenal scientific team with the dimension it lacks – the business dimension. Why force a scientist into the unnatural role of business development manager when experienced and proven individuals have been performing this role in their industries for years? This allows scientists to start deep-tech startups and continue developing innovative solutions,” said Matija Srbić, coordinator of Nuqleus, about introducing Entrepreneurs in Residence to Nuqleus.
In academia, where rigorous research is valued over speed, the process often rewards depth and precision. In contrast, in the business world, if you don’t act quickly, others may step in and seize the opportunity. If you’re having trouble securing funding despite a strong idea, it might be worth refining your pitch or finding someone who can present it more effectively.
“Many founders are focused on their innovation and its shortcomings. Sales and business development experts view it differently. They focus on the innovation as it is at the moment — its key features and how to sell it in the market — as well as what the innovation could become in the future,” shared Michael Poisel, who spent 16 years developing UPenn’s venture builder PCI Ventures. At one of the Nuqleus’ events, he explained the details of the model they have successfully applied for years to develop the University of Pennsylvania’s deep-tech startups.
After a week of collaboration with startups at Nuqleus, Michael shared his insights on the potential of the Entrepreneurs in Residence (EiR) concept within both Nuqleus and the broader Croatian startup ecosystem.
“Not only do they have potential, I believe they (EiR experts) will be critically important in situations where the founding team needs business leadership,” he stated.
