Different Paths of Commercialization

There are different paths of commercialization.

These paths include startups and licensing.

Founders license the technology from the source and then establish a company to create a product to sell for a profit.

The startup requires a team to build, sell, and support the product.

The startup typically needs to raise funding from grants and later private investors to fund the early stages of the business.

There must be a market for the product and the company must be able to sell it in order to succeed.

Licensing takes the technology and packages it into a format that can be implemented into other products by third parties.

The user pays a royalty to the owner of the technology for its use.

Licensing requires the intellectual property to have awarded patents but can also include trade secrets.

A licensing agreement defines the scope of the license, as well as the financial and legal conditions.

The advantage of licensing is that it typically does not require funding to build and sell the technology.

The disadvantage is that it captures less revenue than a startup would.

Consider these paths for your technology.

 

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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.