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FAQs

Start-Up Ventures

What policies govern faculty members involved with start-up ventures?

Several Faculty and University policies govern the role that faculty (and staff) may take with start-up business ventures. For more information on this topic, consult the Start-Up Ventures section.

Does OTD write or help write business plans?

Generally no, but we work with faculty interested in becoming involved with a start-up venture and with those in the venture capital community so that a well constructed business plan can be crafted.  It is important to us that when Harvard technology will be licensed to a start-up company, a well-thought-out business plan is in place and adequate resources (in particular, sufficient financing and capable management) are available to enable the Harvard technology to be developed effectively. We are also available to provide information and assistance so that faculty is aware of, and appropriately addresses any conflict of interest issues that may arise as part of a start-up venture.

Can OTD help me find venture capitalists (VCs) to fund and/or manage a start-up?

Yes. OTD maintains active and ongoing relationships with a wide range of leading venture capital groups, and regularly hold meetings and markets Harvard start up opportunities to the venture capital community. The VCs, working in conjunction with OTD, will often identify and recruit a management team to run the company prior to or in conjunction with negotiating an agreement with OTD and undertaking to finance a start-up.

What is OTD's role in dealing with a start-up company?

OTD has the responsibility to determine whether the start-up company has the potential to obtain sufficient financial and management resources to be truly capable of vigorous  and effective development of the technology to be licensed.  Once the company has sufficient financial backing and a business plan and management team in place, OTD's role is to negotiate an appropriate agreement with the start up company.  The agreement will take into account the capital resources of the company, but will also obtain fair value for the technology to be licensed. When a company founder (who has or will have equity in the company) is also a Harvard faculty member and inventor of technology to be exclusively licensed to the start-up, OTD must perform due diligence to avoid conflict of interest issues that may result from the inventor's financial relationship with the company.

Will Harvard take equity in lieu of cash as part of a licensing agreement with a start-up company?

Sometimes. Since start-ups are often cash-poor, equity is seen as a reasonable means for Harvard to accept payment for its technology. At the time the license agreement is executed, OTD will specify an event that will trigger the sale of Harvard's stock (e.g., the earliest date after the IPO that the stock agreement allows; when a product has reached a specified stage in regulatory approval, etc.). Any proceeds will then be distributed according to Harvard's Royalty Sharing Policy.