What Is The IP Factory And How Does It Work?
The IP Factory is a Connecticut based not-for-profit company organized for the purpose of creating new technology companies in Connecticut, attracting entrepreneurial talent to Connecticut, and training the next generation of entrepreneurs. The IP Factory accomplishes its mission through the following phases summarized in the IP Factory Project Pipeline and outlined in detail in the following sections.
Phase 1 – Assess project candidates
The IP Factory staff works with large Connecticut based industries (Corporate Partners) to identify suspended projects that would be appropriate candidates for commercialization by the IP Factory. Once a project is identified by the company, the IP Factory will have an exclusive option for the technology for the purpose of commercialization. Companies’ transfer options and their participation in the development of the commercialization plans will be negotiated. Inherent to the success of the IP Factory’s process is the continued engagement of the Corporate Partner throughout the process. Therefore, along with $25,000, the Corporate Partner will also be asked to have a representative of the corporation serve on the mentor team discussed in Phase 2.
Prior to review by the analytic team, a second review of the technologies will take place. This review could be conducted by domain experts identified by the IP Factory and its Advisory Board, or through a contract with a technology review organization. The purpose of this review is to affirm the project’s commercialization potential. Information gathered through this process will serve as the starting point and help guide the student or analytic teams.
Phase 2 – Analyze market potential
Once the project has been selected by the process in Phase 1, an analytic team composed of students, subject matter experts, an entrepreneur and / or mentors will be selected. For academic teams, the process of identifying students, developing teams, and working with those teams through a semester long process is well established. Students will be provided a stipend for their work, academic credit, or both.
Each of these teams will be mentored by a representative of the Corporate Sponsor of the technology, individuals from the Advisory Board and the IP Factory Board of Directors with technology and business experience in the potential fields of use for the technology.
A full technology review and commercialization plan will be conducted by the entrepreneur and / or mentored analytic team. During the analytic team process, entrepreneurs from the IP Factory will monitor the development of the commercialization plans and be ready to move the plans forward once they have been developed by the team. This moving-forward could involve the entrepreneur becoming the CEO of the start-up or using his/her contacts to arrange for a management team for the start-up and help that team find funding.
Phase 3 – Business planning
After a commercialization plan is developed, the IP Factory Advisory Board and investors will review the strategy for commercial viability, durability of competitive advantage, and costs to incubate. If there is a viable opportunity for success, the entrepreneur will articulate a full business plan and pitch for investors. This may include additional analytics, customer surveys, focus groups, or prototyping.
Phase 4 – Execution
Once the business plans has been completed, the IP Factory will negotiate with the Corporate Partner the relationship the Corporate Partner wishes to have with the new company.
Primary options include:
- A license of the technology to a start-up
- Both a license to the start-up and an initial investment in the start-up
- Development of a license of the technology to an existing business
- Decision by the Corporate Sponsor to commercialize the technology internally which would trigger a “break up” fee to the IP Factory.
The IP Factory has resources to expedite funding, filing of patents, board formation, and accounting.
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