At Ploughshare, we continually look for ways to improve how we work with founders and investors to bring life-changing technologies to market. Today, we’re pleased to share some important changes to our equity model for spin-outs. Designed to make sure that our model is even more founder – and investor – friendly, they are fully aligned with the recent best practice guidance from the Government Office for Technology Transfer (GOTT). 

As our CEO, Hetti Barkworth-Nanton, states: “with our relentless focus on maximising impact at pace from government intellectual property, we constantly review our commercial policies to ensure they are best in class. I am therefore delighted to be announcing further reductions in our equity ownership model and look forward to working with the best spin-outs and ensuring they are set up for success.” 

Changes to our equity ownership structure

In 2021, we made changes to our equity share and today, we’ve gone a step further, reducing our stake even more to ensure a more founder-friendly approach. The goal is simple: give the IP the best chance of success in the market, with the right incentives for everyone involved. 

• 10% for patent/IP intense spin-out opportunities (rising to 15% if Ploughshare Accelerator Fund investment is leveraged).

• 5% for software (no patent) spin-out opportunities (rising to 10% with Ploughshare Accelerator Fund investment). 

Supporting long term value-creation

For a spin-out to succeed, it’s crucial that we balance equity ownership in a way that leaves enough room for the company, as well as the founders and investors to thrive.  

Over the years, we’ve seen first-hand how important it is to get this balance right, especially as businesses go through multiple rounds of investment – whether from private sources or UKRI/EU grants.  

As John Spindler, from Twin Path Ventures, notes: “through these changes, Ploughshare fairly balances the interests of founders and the UK government with the upshot that spin-outs will be much more likely to be able to raise capital from business angel and VC investors – a win-win.” 

Recognising its importance, we’ve been proactive in adjusting our equity model to ensure that there’s enough equity left on the table for both investors like John and the team behind the spin-out. 

Chris Burgess, CEO of Sentinel, a Ploughshare spin-out, states that: “the shareholding arrangement pioneered by Ploughshare reflects and underpins a deep alignment between the inventors and the founding team, reinforcing a shared commitment to long-term value creation, sustainable growth, and a strong company culture. This strategic equity arrangement ensures that leadership remains deeply invested – both literally and figuratively – in Sentinel’s success.” 

Aligning with GOTT best practice

We’re also excited to note that our revised approach aligns perfectly with GOTT’s recent Knowledge Asset Spinouts Guide, which emphasises the importance of creating sustainable, scalable spin-outs.  

This is just another step in our ongoing commitment to supporting founders, growing the UK’s innovation ecosystem, and making a positive impact on the economy. 

Working together

Ploughshare has over 20 years of expertise in creating and scaling Public Sector Body spin-outs. If you would like to discuss how we can help you, please get in contact by emailing us at info@ploughshare.co.uk.  

Let’s continue to build the future together.