Questions

Our 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?

2answers

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...


Answered 4 months ago

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"


Answered 14 days ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2023 Startups.com LLC. All rights reserved.