From Bench to Market
Many Genomics Law Report readers hope for the opportunity to take a product or process from the research laboratory to the commercial market. “From Bench to Market,” our newest series of posts, will explore the key issues scientist-entrepreneurs will face in turning a research idea into a viable business. Attorneys at Robinson, Bradshaw & Hinson who specialize in the various stages of this process will offer practical background information and pointers. The series will track the development of a new business through each major step, from the decision to pursue commercialization all the way to the pot at the end of the rainbow, a financially successful business.
Some of the issues we will examine go to the core viability of the proposed business. For instance, does the proposed venture have the rights to all of the intellectual property necessary to develop the contemplated product or service? Acquiring the necessary bundle of rights can require would-be entrepreneurs to work at a very early stage with tech transfer offices and other rights holders to obtain the requisite licenses for commercialization.
Another decision that arises early on is the choice of legal entity – typically a corporation, partnership, or limited liability company – that will serve as the vehicle for the business. Often overlooked in the developmental stages, choosing the proper legal entity can have important (and adverse) consequences down the road and it is far easier to spend time up front to get this done correctly than it is to sort it all out later.
Next comes the critical, and often most difficult, hurdle of finding and securing funding for the new venture. The series will look at various funding sources for start-up businesses, beginning with government grants and other funds available for developmental stages. Another early funding source is “angel” investors, including friends and family investors, and we will look at the pros and cons of that type of investment. Finally, we will examine the process of attracting investments from venture capital and private equity investors, including where and how to seek out the money and how to avoid ceding complete control of the business.
As the business continues to grow, still other issues arise. We’ll discuss how to protect and develop intellectual property on an ongoing basis and how to avoid potential liabilities associated with the day-to-day challenges of managing an operating business.
And last but certainly not least is cashing in on the venture’s success. There is more than one way to reach a profitable exit event – not every successful business achieves a front-page IPO – and we’ll discuss how to determine which route makes the most sense for a particular business.
Now, and as the series unfolds, we look forward to receiving your questions and feedback. No matter the stage of the commercialization process you may find yourself, if you have questions or if there are topics or issues that you would like to see addressed please let us know in the comments or by contacting us directly.
