Launching Academic Start-Ups

The launch of biotechnology start-ups from University based research (also called "spin-offs") requires sources of venture capital (seed or start-up capital) to reach proof-of-principle of the idea or product and, if proof-of-principle is reached, an initial round of venture capital financing followed by additional rounds of venture capital to finance the operations all the way to reach the exit for investors, usually represented by the sale of the company to a corporate entity or the sale of the company stock on a stock exchange (Initial Public Offering or IPO). Software companies can go a long way with a $2 million seed and/or first round financing. Life sciences companies instead require much larger amounts and longer times, often up to $30 million of venture capital to reach a phase I stage with a therapeutic product and 5 years. Therefore, competition is fierce and investors very selective.

Yet there is great potential for a University-based biotechnology start-up company, a business that is formed based on academic research.  Start-ups give new blood to the industry…. but are risky ventures and require skilled analysis, planning and management skills.

We have significant Start-Up launch experience in..

• Evaluating the business opportunities and threats
• Writing winning business plans
• Assembling seasoned management teams
• Marketing the business plan to industrial and financial investors 
• Negotiating the best terms for academic founders and their institutions vs. investors
  
• Assisting during the launch phase
• Providing strategic advisory post-launch for licensing, partnering and rounds of fundraising

To launch of a Biotechnology Start-Up requires specific skills and experience, first in assessing if it is the right choice for the technology and then in packaging the necessary components (human resources, technology and capital) in such a way to maximize return for the owners of the technology. If your Institution does not have a Technology Transfer Office or a technology transfer specialist, we can help it set it up and train an in-house Technology Transfer Team.

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