Get info from the experts with these video interviews conducted by Joseph Steig and Judy Giordan with entrepreneurs, investors and others involved in university technology transfer and science startups.
Funded by a grant from the National Science (NSF) Centers for Chemical Innovation (CCI) Program (CHE #0920877).
Click on the quotes to watch the interviews! (Links open in a new tab/window).
Investors describe the VC / Angel community
An important first step in starting a successful new venture is getting familiar with the angel and venture capital community. How does the investment process work? How do you get started? Listen first-hand to what these investors and entrepreneurs say about engaging with the community.
“Angels are investors not just to make money, but because we have a passion for startups and a passion for entrepreneurs.”
“In terms of engaging with investors both at the angel level and the venture capital level—there’s a continuous learning curve.”
“Our investment process starts with generating deal flow. We do that through a variety of sources.”
“What we’re really looking for are companies that are innovating with technology in such a way that that technology gives them some sort of barrier to entry from the competition.”
“Angel groups [are typically populated by] people who have grown and successfully sold or successfully merged out of companies and are looking to keep their hands in and stay involved.”
“It’s really about being big.”
Student perspectives on entrepreneurship
Listen to a handful of students who have made the transition from university researchers to technology entrepreneurs offer their perspectives on the relationship between academics and business.
“Just doing a PhD is not enough. You need to understand how a company performs... if I don't understand that, I would never understand why I'm doing the science.”
“I see myself as more of an entrepreneurial chemist... someone who can work hard... and move innovation forward.”
“In terms of being a young scientist and entrepreneur, there are both advantages and disadvantages.”
Sources of funding for tech startups
Finding the money is typically the most challenging aspect of launching any new venture. Get started on understanding the complicated world of new venture finance now by listening to these three investors and entrepreneurs.
“So let's talk about the types of money that are available to a startup technology venture.”
“What I would encourage all entrepreneurs to do is explore ways to pursue non-dilutive funding.”
“The first thing you have to really get a handle on is how big you're going to get, how fast you want to grow, and where you want to end up.”
Women scientist and investor perspective
The experiences of women scientists and entrepreneurs is usually quite different from men. Women entrepreneurs face a number of distinct challenges, from not being taken seriously all the way to lack of access to capital. These three women entrepreneurs and executives discuss the challenges and opportunities.
“Unfortunately there are still challenges to being a woman scientist. They're numerous and varied.”
“We all view the world with a different lens... Our challenge is not to use those lenses as a negative opportunity for cutting out possibility.”
“We believe there are some very talented women entrepreneurs that deserve to be funded.”
Importance of advisors
Having good advisors and mentors is key to the success of any young entrepreneur (and, by extension, any new venture). Mentors can offer access to their networks, sound advice, and business planning input. Listen as the following five professionals explain why mentors are so crucial.
“Get a mentor who knows your industry. That mentor will help you assess the market opportunity many times.”
“You need to find people with a high degree of credibility, expertise in your field, and you need to convince them that they need to advise you.”
“You should find somebody who’s willing to tell you the hard things—willing to give you really honest advice and where you blinds spots are.”
“Most people out there doing mentoring love nothing more than to help you.”
“First and foremost, the challenge that any young entrepreneur faces is the willingness to listen.”
Investors' perspective on university tech startups
Investors don't look at university startups all that much differently than non-university startups. They want to see the basics: is there a market for this technology? Do people need it? Is the team in it for the long haul?
“When we look at a university startup, we don't look at it any differently than a non-university startup. We look for the basic things.”
“What you want to see is somebody [on the team] who truly believes the technology has potential outside the laboratory and outside scientific journals, and they want to make that happen.”
“First of all, we look for customer validation. So one of the things we're going to do when you talk to us about your product or technology, is we're going to go out and talk to prospective customers.”
“The first thing is focus. I've seen lack of focus kill more companies than anything except possibly lack of money.”
“If we're looking at a technology company, we look to see if there's a first application. If the technology isn't quite ready to go into market, we look for validation from prospective customers.”
Corporate perspective
Corporations and universities have grown closer in recent years and now have a number of points of interaction, including hiring graduates, collaborating on research and acquiring new university technologies. The following two experts offer a corporate perspective on university tech startups.
“Over the last decade, companies have been very interested in exploring research opportunities with people at universities.”
“The entrepreneur from the university really needs to help prepare that vision for what the mature product and technology will be like. [Large corporations] are looking for things that look like they're going to be large and mature in the future.”
Understanding the tech transfer office
Engaging with your tech transfer office will likely be the very first step you take toward commercializing your invention and bringing it to a larger world. Listen as these experts describe the details of working with the tech transfer office.
“The first thing for any faculty member or student or science-oriented founder, if they're in the university setting, they've got to be speaking with their technology licensing office.”
“Typically the university's going to look to be compensated for the initial value of the technology through an ownership stake in the company.” [Part 2]
“If you want to start a venture, then I think you need to go and start that relationship as soon as you can with the tech transfer office.”
“Your first duty within the institution is to disclose the technology to the tech transfer office.”
“If your university is going to be looking for a piece of equity, [you need to figure out] how you're going to work that into the corporate side of making the company run.” [Part 2]
Understanding customers' needs
It's often a blind spot for scientists: in order to build a viable business, there has to be a market need for the technology you're developing. If not enough people want to buy what you're selling, your venture won't get off the ground. Each of the below experts stresses the importance of understanding customers' needs, and making sure you meet them.
“Do you really understand the market you're playing in? Have you carved out a big enough piece that you can really lead?”
“Is there a pull? Do people want to buy this? What's the problem you're trying to solve with this technology?”
“You've probably spent the last two, three, five, maybe ten years developing your technology. How much time have you actually spent out talking with prospective customers?”
“You have to really have an open mind about where you think the technology will be applied, what the first application will be, who will find it most valuable. And you really get that information by asking questions.”
“The lens of the market is a valid lens for doing research.”
“Do not underestimate how important marketing will be to making your company successful, especially if you come from a scientific background.”
“Seeking advice from others, asking questions, challenging your own confidence around the technology itself...is really useful to do.”
Importance of the team
The team you assemble to commercialize your new technology could very well be the most important factor in determining whether or not the venture will be successful. Investors want to see high-functioning, interdisciplinary teams capable of tackling the many challenges that lie ahead.
“We're looking at: do these teams function well together? Are they diverse enough? Do they complement each other enough to grow a real business?”
“What I want technologists to understand is that in order to have the right skill set to be an entrepreneur, you really have to understand what it takes to build a company.”
“If you're going to found a company, people are probably the most important ingredient from day one.”
“Just the knowledge of realizing that I need to be interdisciplinary is a very, very important thing.”
“Nobody can do everything. In fact, what investors like in particular is a team.”
“The first thing we look at is the team that's been put together. How robust is the team in terms of skill set?”