Small Business or Non-profit

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Small Business or Non-profit Launch Terms

A limited growth company or Non-Profit organization expected to not exceed a team of 1 to 10 individuals. These organizations are typically service-oriented, niche product providers, or specialized consulting firms that commercialize UMN innovations. Given their size and revenue potential, these entities are generally not structured to support a royalty obligation, nor would the university seek to take an equity position in the company. Instead, licensing terms prioritize accessibility and sustainability to foster local economic impact.

Launch Term

Requirements

Upfront License Payment
 		$1,000
Annual License Payments
 
  • $0: Year 1
  • $2,500: Years 2 – 4
  • $10,000: Years 4+   
Royalty (based on cumulative revenue)
 
  • 1%: Less than $5 Million in revenue
  • 1.5%: $5 Million to $20 Million
  • 2%: Greater than $20 Million 
Annual Post 1st Sale License Payments (based on cumulative revenue)
  • $0 – 1M: $10,000
  • $1M-5M: $25,000
  • $5M-10M: $50,000
Sublicense Revenue Share
 		20%
Patent Expense Reimbursement
 
  • Two year deferment for past patent expenses.  
  • On-going International paid as incurred.
  • US patent expenses deferred for 2 years. 

Access startup tools, grants, incubators, and mentorship through the Venture Center, Discovery Launchpad, and programs like MIN-Corps, Discovery Capital, and I-Corps.