Venture Development Process
New Technology Received
When a new technology is submitted to the Office for Technology Development (OTD), the technology is reviewed and vetted by the OTD Technology Commercialization staff for commercialization potential, including patent possibilities, likely interested parties for licensing, or potential for placement into a start-up company project. The technologies that seem viable to become part of a new commercial entity are assigned to a licensing associate who will manage the new venture project initially.
Market Potential Analyzed
In the following weeks and months the licensing associate will investigate the potential market, comparable companies in the space, commercialization investments in similar other technologies, and other resources that are useful in establishing a start-up based on the core technology.
Start-up Entrepreneur Begins Development
The licensing associate serves as the start-up manager for the internal development phase until a startup entrepreneur may be found who will take on the many tasks needed to take a new company forward. Some of the entrepreneur’s activities include writing a business plan, locating a permanent chief executive and other members of the management team and staff, locating financial backers for seed money, arranging for workspace, retaining legal counsel, and negotiating the terms of a license from UT Southwestern to the newly forming company.
Technology Licensed to Start-up
Technologies are licensed into the start-ups from the University in exchange for cash and/or equity in the company. The licenses typically include additional payment obligations to UT Southwestern in the form of milestone payments, royalties, or other forms of payments. The license equity and revenues are shared with the inventors.