Resources for Entrepreneurs
Internal Entrepreneurs
Make sure you check out our exciting program for entrepreneurs, Propel Dayton.
Are you an UD employee who wants to launch a start-up company based on UD technology? For some technologies, a start-up company is the optimal way to bring the technology to market. The checklist below will help you to get started.
1. If you are the inventor of the technology you are interested in using, please complete an Invention Disclosure form (see Inventor’s tab) and submit it to UD’s Office of Technology & Entrepreneurial Partnerships (OTEP). If you are not an inventor, but are still interested in using UD technology, please see our list of technologies available for licensing.
2. Write a business plan. All start-up companies should have a defined, plausible business strategy and a plan for its execution. Be sure to define your start-up company’s objectives, and the critical steps required to commercially implement the technology, including:
- The start-up company’s technology and its status;
- Expected start-up company’s products and/or services;
- Targeted market(s), customers, distribution channels;
- Size of targeted market(s);
- Competition, both technical and commercial;
- Marketing and sales strategy of the start-up company;
- Unique advantages of the start-up company, compared to competition;
- Economics of the business, starting with expected gross margins, i.e. the difference between selling price and product (or service) cost;
- Organization and key people involved, including CEO, key officers, board of directors, advisory board;
- Key staff and consultants; other key employees;
- Operating plans, financial assumptions;
- Financial forecasts;
- Financing objectives and/or plans, including valuations, financing sources and expected start-up ownership and governance; and
- Current status of the start-up company and expected schedule of actions, events, and accomplishments.
There are numerous resources in the Dayton area (including here at UD) which can assist entrepreneurs in the planning and execution of new start-up companies. UD encourages new entrepreneurs to make full use of such resources. The OTEP is happy to put you in contact with these resources.
3. Negotiate a license with UD. Use of UD technology will always involve a license from UD to a licensee whether it is an existing company or a start-up company. Such a license might be exclusive – typically for one or more specific “fields of use” and/or for a specific period of time - if the licensee can meet certain development and product milestones; or non-exclusive with somewhat fewer and less stringent milestones. Examples of UD’s license templates are here and include the following standard terms for an exclusive license:
- 2% Royalty
- 6% Equity
- Responsibility for future patent costs
- Insurance Requirement
- Mutually agreed upon metrics for commercialization
- Indemnification
- Compliance with applicable UD policies and all applicable laws
Additionally, as part of the UD family we will work startups to delay patent and other costs on a schedule that meets the needs of the startup and makes commercial sense for UD.
Please note that, in the spirit of being transparent, these terms will be the standard that will normally apply and should not be considered starting points for negotiating more favorable terms. Also, please note that if the technology involves exceptional circumstances, such as a large prior investment by the University in the technology or if there were unusual research contract terms leading to the technology, the standard terms may not be available it is would be unfair and inappropriate for the University. Deals with start-up companies for technologies involving such exceptional circumstances will have to be developed and negotiated on a case-by-case basis.
4. Waive right to royalties under UD’s Intellectual Property (IP) Policy. UD’s IP Policy provides for a 50/50 Split of net royalties between UD and the inventors of the technology. If the inventor(s) of the technology are also members of the start-up company that licensed that technology, the inventor(s) will be required to waive their rights to these royalties. If not all inventor(s) are involved in the start-up company, the uninvolved inventors shall still have the right to their portion of any royalties collected by UD.
5. Conflict of Interest Management Plan. The encouragement and support of a start-up company by UD does not change UD’s other policies which remain fundamental to the University and its governance, such as its policies on Conflict of Interest, Conflict of Interest & Commitment Policy for Sponsored Research Programs, and other relevant policies. All conflicts of interest and conflict of commitment issues should be timely discussed with the relevant UD dean/directors and division/department heads. More than likely, a conflict of interest management plan will be required. Please reach out to the Research Ethics Coordinator in the Office for Research for assistance.
6. Access to UD Space. UD start-up companies may request permission for the use of UD space, equipment and certain other physical services (such as computer resources and computer networks) on or off UD premises. After review of the start-up company’s business plan, such services may, at the discretion of UD, be made available to the start-up if (i) reasonably available and (ii) approved by the relevant department head(s) or dean, for a defined period normally not to exceed two years. This may include an additional fee as warranted by the particular situation.
External Entrepreneurs
The University of Dayton wishes to provide clarity to any external investors or entrepreneurs that would like to engage, or invest in UD intellectual property. Initial engagement is usually through a UD inventor, or through contact with the Technology Partnerships Office about a particular technology. Either way, the Technology Partnerships Office will be your guide in making connections with UD researchers, navigating UD requirements, and ultimately any license agreements for UD technology.
To that end, if you have questions about a particular technology, or would like to see technologies of a certain technical area, please contact Technology Partnerships.
What an external entrepreneur can expect
UD is committed to facilitating startups and small business around UD technology.
Standard terms are:
- 2% Royalty
- 6% Equity
- Responsibility for future patent costs
- Insurance Requirement
- Mutually agreed upon metrics for commercialization
- Indemnification
- Compliance with applicable laws
That is it! We are flexible on the other issues. You will find dealing with UD to be professional, fast, honest, reliable, and exceed your expectations. We want to start up companies based on UD technology, and we are here to guide you through that process. Your success is our success!