Spin-out

A spin-out is a process where a company develops a new, independent business from within its existing operations. This often happens when a specific project, product, or team shows potential for growth that is better pursued separately. The original company may provide initial funding or resources, but the spin-out becomes its own entity, allowing for focused management and innovation. This approach can enable the new business to be more agile, attract different investors, and pursue unique strategies, while still benefiting from its parent company's expertise and support during the transition.