Startups have the potential to produce significant opportunities for the inventor(s), the university and the surrounding community. Although they involve more work and are riskier than a traditional licensing agreement, successful startups offer the following benefits:

• Bring a technology to market more quickly
• Create jobs within the local community
• Aid university research and faculty retention
• Increase the value of a technology to outside partner companies
• Generate much higher financial returns

AzTE startup services

AzTE offers a comprehensive network of entrepreneurial and business development services to assist you in establishing a startup company to commercialize your technology.

To aid university researchers and faculty as they consider startup opportunities with their technology, AzTE is chartered to encourage and facilitate startups. Assistance includes:

Business Planning and Market Analysis
AzTE has established a number of partnerships with the W. P. Carey School of Business at ASU to have experienced students perform market research, business planning and financial analyses on behalf of technologies in our portfolio.

Venture Financing
On an opportunistic basis, AzTE matches university entrepreneurs with local venture capitalists, investors or others who may serve as informal mentors. Other funding sources and resources may include the Catalyst Fund, as well as SBIR/STTR training resources.

Network Facilitation
AzTE can make introductions to leading service providers who can provide invaluable assistance to startup companies in the areas of law, human resources, business strategy, corporate structure and governance, marketing, operations, and finance. AzTE staff may also assist companies in identifying appropriate advisory board members.

Sales and Marketing
Local, technology-focused conferences and organizations are often interested in highlighting ASU’s emerging technologies. AzTE matches up entrepreneurs with these events in order to increase the visibility of ASU’s technology-focused entrepreneurs.

Seeking support for a startup

If you are seeking AzTE's services for a startup, you need to complete the first phase of the process by submitting an invention disclosure form.

The decision to consider a startup occurs after the technology evaluation phase. If the conclusions of the assessment indicate that the best opportunity for commercialization is through the formation of a new startup company, then AzTE will help drive the formation process. The following factors are considered to evaluate the potential for a startup:

• Availability of management talent
• Best use of technology (long-term, maximum "usage-share")
• Evaluation of conflict of interest issues
• Financial considerations and risk analysis
• Potential for local economic development
• University issues (faculty and student opportunities and protection)

In addition, we examine the technical and market environment to analyze whether licensing to an existing company can co-exist with a startup.

Faculty startup company approval process

A faculty startup company is a company that is founded by an ASU employee based on ASU technology. The faculty startup generally licenses its core technology from AzTE in exchange for royalties and other cash consideration, as well as equity in the company.

The following is a brief summary of all required approvals and actions to be completed prior to forming a startup company based on ASU technology. Please read this information carefully and contact AzTE to assist you through the process.

ASU requirements

1. Develop a conflict management plan
2. Objectivity in research requirements
3. Procurement requirements

1. Finalize license agreement
2. Prepare "internal review document"
3. Prepare an executive summary of the transaction
4. Approval of general counsel's office
5. President's certification
6. Submission of the executive summary

Starting a company is not an easy task. It requires commitment, dedication, persistence and sacrifice. The vast majority of startups fail despite promising technology. It is essential that entrepreneurs educate themselves to prepare for the challenges ahead.

For this purpose, AzTE has provided a list of online resources below. This list provides a first step toward gathering the information you will need to start a company.

• ASU resources
• General resources
• Funding resources
• Patent resources