The Venture Center team works with University researchers, entrepreneurs, investors, and advisors to provide services to help establish new companies.
If you are a UMN inventor or external entrepreneur and are interested in starting a company based on UMN technology, we can work with you to help bring UMN inventions to the market.
Before following the steps below, be sure to disclose your invention to us.
- Contact a member of our team in the industry area related to you.
- Complete the startup application.
- Meet with us to review your startup application.
- Consider participating in the Discovery Launchpad program
- Work with us to form a team (including industry advisors and executives-in-residence) to develop your business plan.
- Meet with us to review your business plan.
- Meet with us and the COI team to discuss potential CIO issues and understand what might be in a management plan.
- Negotiate the business terms of launching your startup, such as performance and financial milestones and capitalization table.
- Negotiate the intellectual property licensing terms.
- Form the new company.
- Execute license to the new company.
- Update Report of External Professional Activities (REPA) for potential individual conflict of interest.
We are always looking for new entrepreneurs interested in launching startup companies based on UMN technology.
- Contact a member of our team in the industry area you are interested in.
- Review our startup pipeline to identify potential opportunities.
- Join our Business Advisory Group to learn about new opportunities, participate in regular meetings, and make connections with other industry experts.
- Serve as an advisor, mentor, investor, or leader of a UMN startup company.
The Discovery Launchpad is a startup incubator and program of formal coaching for UMN researchers interested in forming a startup company to commercialize new technology. Experienced advisors help researchers move through the startup process using a three phase approach. Participants develop business and marketing plans, learn about legal and regulatory aspects of running a business, and have access to no-cost shared office space.
The Venture Center hosts regular, free workshops for UMN faculty, graduate students, and post-docs considering a startup based on inventions emerging from their research. Each program focuses on a relevant topic and provides the opportunity to network with entrepreneurs, business advisors, and Venture Center staff—all with real-world experience turning an invention into a successful new company.
Check the events page for a listing of current startup workshops.
Discovery Capital Investment Program
The Discovery Capital Investment Program provides early-stage companies commercializing University technology with crucial seed funding to help accelerate the process of turning breakthrough research into a commercially available product.
The program invests up to $350,000 in qualifying startup companies formed from University technology that are currently developing their product or service. Investments must be matched by an equal or greater outside investment and approved by the Discovery Capital board of advisers.
Companies interested in Discovery Capital funds must submit a business plan and an investor presentation outlining the fundamentals of the business opportunity. We will consider the potential return on investment when selecting companies for funding, and will not consider companies that have previously received equity capital from other outside investors.
Contact us at firstname.lastname@example.org to apply.
SBIR and STTR Funding Programs
SBIR and STTR are federally funded programs that offer opportunities for small businesses to partner with research institutions like the U of M. The Venture Center has teamed up with the Minnesota High Tech Association to provide help in identifying these grant opportunities and provide guidance on how to apply.
The Small Business Innovation Research (SBIR) program lets small businesses engage in federally sponsored research to explore its technological potential and profit from commercializing new technologies.
The program aims to:
- Stimulate technological innovation
- Meet federal research and development needs
- Foster participation in innovation and entrepreneurship by socially and economically disadvantaged individuals
- Increase private-sector commercialization of innovations from federal research and development funding
The Small Business Technology Transfer (STTR) program supports a partnership of ideas and technologies between innovative small businesses and research institutions.
The program requires a small business to formally collaborate with a research institution like the U of M in Phase I (feasibility and proof of concept) and Phase II (research and development), allowing it to bridge the gap between conducting basic science and commercializing new discoveries. More than $2 billion is available each year for small businesses in a wide variety of technology areas.
The program aims to:
- Stimulate technological innovation
- Foster technology transfer through cooperative research and development between small businesses and research institutions
- Increase private sector commercialization of innovations derived from federal R&D
Determining Intellectual Property (IP)
The small business receiving the SBIR or STTR award may subaward a portion of the funding to an academic institution such as the University of Minnesota. The funding provided to the University via the subaward is federal funding, and the intellectual property (IP) rights are managed as if the federal funding was provided directly to the University. Ownership of intellectual property is governed by US law, specifically the Bayh-Dole Act, which states that ownership is determined by authorship or inventorship.
The small business may negotiate a license to the IP developed during the project. The SBIR or STTR does not give the small business exclusive commercial rights to use project IP developed solely or jointly by the University.
Conflict of Interest
In many cases our inventing faculty will continue to do research that could benefit a company that they are working with to commercialize an invention that came out of their lab. The Venture Center will work with the faculty researcher(s) and help them address any potential conflict of interest. This typically involves engaging the UMN conflict of interest group and helping all those involved understand the situation and what can be done to manage the conflict.
All income (whether from royalty or equity) is distributed according to Regent’s policy.