Exploring IP Ownership, Funding, and Strategic Decisions for Turning Research into Market-Ready Solutions.

On February 25th at 16:00, HiSeedTech hosted the first webinar of the HiTech 2025 program, exploring the critical role of licensing and technology commercialization in the entrepreneurial deep tech journey for researchers. The session provided valuable insights into the complexities and opportunities surrounding licensing agreements and the process of turning research into market-ready solutions.

Key Takeaways from the Webinar:

The Key Role of Intellectual Property (IP) in Commercialization
A central topic discussed during the webinar was the importance of intellectual property (IP) ownership. Pedro highlighted the complexities of determining IP ownership, especially when research teams include professors, students, or external collaborators. Clear ownership of IP is vital for securing investment, as investors need certainty about who holds the rights to the technology. In most cases, researchers disclose their work to the host institution, which typically retains the rights to the IP for further research and teaching. However, challenges arise when it comes to assigning credit and splitting proceeds from commercialization, particularly in academic settings where team compositions may change over time.

Funding Early-Stage Ventures: Navigating the 'Valley of Death'
One of the critical challenges in the commercialization process is crossing the so-called "Valley of Death" — the gap between early-stage research and market entry. This phase is often marked by a lack of funding, and many promising technologies struggle to secure the necessary capital to move forward. Pedro highlighted available funding sources, including Horizon Europe, EIC Pathfinder, EIC Accelerator, and business angels, which are crucial in bridging this gap. Securing the right funding at this stage is essential for turning a technology into a viable product or service that meets market needs.

Licensing vs. Spin-Offs: Which Path to Take?
Pedro also discussed the pros and cons of licensing technology versus founding a startup. Licensing typically involves royalties and development milestones, and while it provides a lower-risk option for researchers, it may also limit the potential financial return. On the other hand, starting a spin-off company offers greater upside but also comes with increased risk and requires more effort to succeed. The decision between these two paths depends on several factors, including the technology’s market potential, the researchers' capacity to handle the challenges of running a startup, and the availability of funding and resources.

Consider creating a startup over licensing when:

• There’s a lack of suitable receptor capacity for IP (licensees).
• Your IP is a solid foundation for a new company and a platform for additional and synergistic IP.
• You can attract suitable funding and management resources.
• There is a clear potential return for investors and/or the research institution.

The Pros and Cons of Both Paths:

• Startups require more effort than licensing but have the potential for a bigger upside in the long term.
• Licensing offers stability but may provide more limited financial returns.

Key Takeaways for HiTech Participants:

• IP Ownership is Crucial: Ensure clear ownership of intellectual property before proceeding with commercialization.
• Evaluate Market Potential: Understand market needs and validate your technology’s commercial viability.
• Consider Funding Options: Leverage available funding sources like Horizon Europe and business angels to bridge the "Valley of Death."
• Decide Between Licensing and Startup

At HiSeedTech, we are dedicated to supporting the participants of HiTech 2025 as they navigate the complexities of technology commercialization. Through our workshops and expert guidance, we aim to empower research teams to successfully bring their scientific results to the market, creating lasting value from deep tech.

Stay tuned for more webinars and resources aimed at helping researchers navigate the complexities of turning research into real-world solutions.