Dr Jonathan Savidge, of UCL Biomedica, makes the point that the ability of early-stage biotechs, in particular spin-offs from universities, to obtain VC financing, depends on these investors being able to secure successful exits - either via IPOs or M&As. Analyses are presented of recent IPOs and M&As of differing success. Ultimate returns to universities from spin-offs also depend upon the value of the company rising at each VC round. In rounds where the share price falls, there may be catastrophic dilution of the university's shareholding, so that even if the company is ultimately successful, and the investors secure a profitable exit, the university may not share in that financial success.