Abstract
This paper investigates how university spinout companies develop. The capabilities framework is used to investigate the development of nine different spinout companies. Each venture is found to move through a number of distinct phases and to come up against "generic" problems whilst attempting to move from one phase to another. We identify four critical junctures that spinout companies need to overcome to succeed. The entrepreneur or the entrepreneurial team need to possess key entrepreneurial capabilities to overcome these critical junctures.
