Faculty Startups

 

Economic development and intellectual property commercialization are an important part of the University’s overall research mission.  LSU has procedures in place that permit LSU faculty and employees to start companies utilizing technology they developed at LSU. 

If you are interested in starting a new business based on your research at LSU, contact our office.

 

Resources for Startups

How to Build a Startup
The Startup Owner's Manual
Business Model Generation

Louisiana Business and Technology Center
Louisiana Emerging Technology Center
Louisiana Economic Development
Louisiana Technology Park
LA Fund I
Baton Rouge Area of Chamber
National Center for Entrepreneurial Tech Transfer (NCET2)

 

Essentials to Establishing a Technology Based Company

  • Having a protected product or process that is new and/or superior to anything currently in the marketplace
  • Creating a management team well versed in start-up and business operations
  • Access to sufficient capital and adequate facilities
  • Utilizing available, low-cost, experienced business assistance
  • LUCK and HARD WORK!

 

Policies for Faculty Startups

LSU employees wishing to start a new business should consult with his/her supervisor and other appropriate individuals to ensure all University policies are being followed. An LSU employee starting a new business while retaining his/her LSU position must manage potential conflicts of interest and conflicts of time commitment. Important LSU policies that LSU employees must comply with are:

  • PM -11 - "Outside Employment of University Employees"
  • PM -67 - "Contracts between the University and its Faculty Members"
  • PS-98 – "Disclosure of Financial Interests"

 

Managing Conflict of Interest in Faculty-Owned Companies

  • Keep your company activities separate and distinct from your LSU employee activities.
  • Expect your company to be treated exactly like any other company.  The fact that it is partially owned by a LSU faculty member does not give it any special privileges.
  • Do NOT involve your current students in your company.
  • Do NOT use LSU facilities, equipment, supplies, etc. unless covered by a formal written contract.

 

Licensing LSU Technology

To license a technology contact ITC. As with any other company interested in commercializing an LSU technology, your company must negotiate a license.

Your company will need to have a business manager who is not affiliated with LSU to negotiate the license. As a LSU employee, you may not negotiate with LSU on behalf of your company. Before the license can be signed the LSU faculty inventors/company founders must obtain PM-11 and PM-67 approval.

If your company does license an LSU technology, it can expect the license to contain any or all of the following financial considerations:

  • An initial licensing fee
  • Royalties on sales
  • Patent and future cost reimbursement
  • Equity
  • Milestone payments
  • Royalties from sublicenses

At the appropriate time, your company must acquire insurance, which names LSU as a co-insured, in an amount suitable for your company’s industry.

 

Company Documentation

A company wishing to license LSU technology must be prepared to work towards commercializing the technology. LSU requires the following documentation in considering a potential licensee:

  • Certification of Incorporation
  • Formation Documents
  • Capitalization Charts
  • Business Model Canvas

 

Research & Development

Your business plan should include space and equipment to meet R&D needs. Further R&D of the licensed technology may not be conducted in your LSU lab, unless, as any outside company, your company provides support/sponsored research for the technology.    

 

Financing Your Company

Private Resources (Family, Friends, Angel Investors, Venture Capital)
SBIR/STTR Grants