Loading...
Answers
MenuOur biomed startup is assessing the option of getting an exclusive license for IP owned by the University. The terms are to be negotiated.
There is no info on industry benchmark. Clear that negotiations will be centered around Upfront payment, Equity (5-10%) and Royalty (0% - 5%). That's what is found in the case studies. However during "exit" phase royalties are not appreciated and these terms are asked to be re-negotiated, which brings problems and $ loss. Can anyone having the above experience or opinion add clarity to the matter?
Answers
1- The reason for the first payment fees must be explained!
2- The reason for the royalty!
3- Does the company have a well-studied financial strategic plan?
4- What are the advantages of the customer!
5- The value of the services!
Honestly, the best solution to avoid any financial dispute is to clarify and detail the contract before starting, which guarantees the right of both parties
You can contact me for more...
You can put a term in the contract to allow for royalty waiver when proceeding to exit. This term can include either royalty are waived after 5-10 years or they can be waived by paying specific amount of money to the university, for example a term will be like that "Based on founders and investors agreement, the company can offer a royalty waiver for the amount of 10 times last year royalty paid"
Hi
I know it's been a while since you posted this, so not sure if it's still relevant, but if it is, I've helped with a lot of similar negotiations and happy to hop on a call.
Prior to the call, please send me the basic information so I Can review and thus make our time more efficient.
Good luck!
*** I am a mentor on Startups.com, an international lecturer on entrepreneurship and negotiations, a commercial startup lawyer and a leadership coach. I've successfully helped over 400 entrepreneurs, startups and businesses and I would be happy to help you. When scheduling a call, please send me some background information and the 2 main questions you want answered so that I can prepare in advance (to give you maximum value for your money). My reviews: https://clarity.fm/assafben-david ***
Related Questions
-
Is changing my personal name (or use another name) good for business?
I lived in the US for 28 years before returning to Russia. My name is not easy for Americans to pronounce (anything outside of the Anglo-Saxon standard names seems to fit that category). Short version of Stanislov is Stas, so I went with that for them, but I never would change my name. Take pride in the name you were given and the culture you came from. Your parents gave you that name and you have it for a reason. Just because others don't pronounce it just right is no reason to throw away your culture. Oh and Misha is the short Russian version of Michael, if you americanized it, it would have to be Mike.Stanislov KrapivnikSK
-
How can I make a million dollars?
First, I agree with Chad in that the pure pursuit of money is unlikely to render anything significant. By using a monetary value as a primary goal, you're only diluting the real drivers of success: passion, crafting great customer experiences, building an incredible team and culture etc. That said, making $1m isn't that hard. :) I love this thinking by Amy Hoy and that's how I would go about making $1m: http://unicornfree.com/30x500. Using that logic, this is what I'd do: * To earn $1m in a year, I need to earn +- $80k a month. * To earn $80k a month, I need 1600 customers paying me $50 per month. * So what can I build that could attract 1600 people to pay me $50? * Or, what could I build that could attract 400 people to pay me $200 per month? This logic works on two drivers: * Cumulative revenue and growth. So SaaS works best in this regard, as you only need to focus on having new signups that are greater than your churn. * Building something that people are willing to (really) pay for and going for quality over quantity. If you are building something that sells for $5 pm, you'll need to sell at much higher volumes (which are tricky). In terms of doing that, these are the areas of my business that I would prioritize: 1. Build an awesome team that do things they're passionate about. 2. Prioritize customer experiences above anything else. Do everything in your power (regardless of whether it can't scale) to add value and help your customers. 3. Build a brand and reputation that has long-lasting value.Adii PienaarAP
-
How can I become an idea person, as a professional title?
One word: Royalties This means you generate the idea and develop it enough to look interesting to a larger company who would be willing to pay you a royalty for your idea. This happens all the time. Rock stars, authors and scientists routinely license their creative ideas to other companies who pay them a royalty. Anyone can do it. Your business, therefore, would be a think tank. You (and your team, if you have one) would consider the world's problems, see what kinds of companies are trying to solve those problems, and then develop compelling solutions that they can license from you. You have to be able to sell your idea and develop a nice presentation, a little market research and an understanding of basic trademark and patent law. The nice thing about doing this is that if you develop enough cool ideas you will have royalties coming in from a lot of different sources, this creates a stable, passive revenue stream that requires little or no work to maintain. Start in your spare time and plan on the process taking 3-5 years. Set a goal to have a few products in the market that provide enough revenue (royalties) to cover your basic living expenses. Then you can quit your day job and dedicate more time and increase the momentum. A good idea business should have dozens, if not hundreds of license contracts generating royalties. It's possible to pull this off. And it is a fun job (I'm speaking from experience).Mike MoyerMM
-
I have an idea for a start up, but I don't know how to code, whats the next step?
Hello, If you have time, I suggest that you learn coding yourself. That saves you money but takes a great amount of time to do. And if your interested, I'm a coder myself. You can give me a call and we'll discuss the details of your idea.Georgio SayeghGS
-
If I have a business idea for a large company, how can I give it to them and mutually profit, without them just taking the idea and squashing me?
Probably not the answer you're looking for, but companies have so many unimplemented ideas that the likelihood of partnering to implement someone else's idea is really low. And besides which, the idea is not something that has much value in and of itself. If you're passionate in the idea, build it yourself. That's the only way you can have leverage.Tom WilliamsTW
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.
