The Idea Sheet is a list of questions that will help determine if your university innovation would have a high chance of success as a new company. After you submit a brief summary of the start-up idea and technology it is based on, the Office of Strategic Initiatives will schedule an initial meeting to informally discuss your idea. Through these discussions, the Office of Strategic Initiatives will help define some of the basic questions that will need to be answered to determine the chance of success of this new company. The Office of Strategic Initiatives will also discuss the resources they can offer to start-up development. Click here to read the Start-up Idea Sheet.
During this phase, background information on the real-world market problem that the innovation solves, potential revenue opportunities, and competing technologies is researched and documented. The Office of Strategic Initiatives, researcher, potential management team and/or party interested in creating a start-up may all be involved in developing a PowerPoint presentation that succinctly describes the start-up opportunity. Click here to view a sample of the model presentation. The Office of Strategic Initiatives will review this presentation and may bring in outside experts in order to further develop the business idea.
During this phase, the Office of Strategic Initiatives will continue with the due diligence process and a formal business plan for the start-up company is drafted. If the business opportunity is determined to have a high potential for success, the Office of Strategic Initiatives will construct a term sheet to be negotiated during the next phase, complete the startup application and use it as a cover sheet to the business plan for the Office of Strategic Initiatives. Click here to view a sample outline of a business plan.
During phase 4, the Office of Strategic Initiatives will work with the Office of Technology Transfer to determine mutually agreeable licensing terms that provide a sufficient equity return to the University, while ensuring the maximum opportunity for a successful start-up. The Office of Strategic Initiatives will then present a term sheet to the start-up company. This term sheet will contain a capitalization table outlining the equity distribution, the licensing terms, royalty payments and performance milestones. The goal of the term sheet will be to provide an equitable framework for a financial return to the University, but will be designed to be compatible with the needs of the new company.
During this phase the Office of Technology Transfer will work with the new company to finalize the terms of the agreement. The next section provides an example equity structure for a start-up company.
At the completion of the deal the start-up company is formed. The Office of Strategic Initiatives may or may not take a seat on the start-up company’s board of directors. Then Office of Strategic Initiatives monitors the post-license issues and equity issues for the University as long as the license is in effect and/or the University holds equity in the new company.
