Commercialization Services - Frequently Asked Questions
If you’re interested in commercializing technology at Georgia Tech, you’ll have a lot of questions. The most frequently asked questions are answered below. For other questions, please contact Commercialization Services specialists listed in the team directory.
What is Georgia Tech’s attitude toward startups?
Georgia Tech encourages the participation of its faculty members, research staff members and graduate students in startup businesses that commercialize Georgia Tech innovations, create new jobs and develop new capital sources. Georgia Tech Commercialization Services and the Office of Technology Licensing can advise and assist you in the creation of a company.
As a faculty member, research staff member or graduate student, how can Commercialization Services help me?
Commercialization Services can provide a market-driven evaluation of the commercial value of your innovation. For those innovations that can form the foundation for new companies, VentureLab can provide support throughout that process.
Few people excel at both creating research innovations and leading early-stage technology companies. However, companies must have strong leadership in both areas to be successful. VentureLab staff members bring a combination of technical background and business expertise to help research innovators to create successful startup companies.
What is conflict of interest?
"Conflict" can be defined as "any outside activity or financial interest which interferes with the full and faithful performance of the employee's responsibilities or obligations to the institution." The term "conflict of interest" refers to situations in which financial or other personal considerations may directly and significantly affect, or have the appearance of directly and significantly affecting, a faculty member's or staff member's judgment in exercising any Georgia Tech duty or responsibility or in the conducting or reporting of research. The bias that such conflicts may conceivably impart can adversely affect many Georgia Tech activities, including decisions about the supervision or evaluation of students, collection, analysis and interpretation of data, sharing of results, choice of protocol, use of statistical methods, and restrictions on publication.
How much ownership can I have in a startup company that is not using technology I developed?
If you are not one of the inventors, or if the technology was not developed at Georgia Tech, there is legally no limit to the amount of ownership you can have in the company as long as you are not in a position to influence Georgia Tech’s relationship to the company including any contractual agreement (i.e. research) that exists between Georgia Tech and the company. This is no different from ownership in any company.
Can I be involved in the management of a startup company?
Yes. However, you will find that most venture investors discourage the involvement of faculty members in the day-to-day management of companies created to commercialize their inventions. Investors prefer that experienced management be brought in to run the company at an early stage.
Any involvement in the management of the company must be disclosed, as you would do for a consulting activity. Technical work you perform for the company has to be disclosed as well. The disclosure and approval process are the same as for a consulting activity. If the time requirements for your outside activities exceed the Georgia Tech regulations, your supervisor may require that you enter into a part-time appointment or take a leave of absence. Taking a leave of absence for a few months has proven to be a very effective means for faculty to be involved in the launching stage of startup companies.
Can Georgia Tech innovators take equity in startups?
Yes. While Georgia Tech encourages entrepreneurship and faculty involvement in start companies, we are aware of the faculty member's potential conflict of interest, and must ensure that any such potential conflict can be managed. Full details can be viewed in the Conflict of Interest Policy.
If the inventors have ownership in the company, or are involved in the company's management, can they perform research for the company at Georgia Tech?
No, not as a principal investigator (PI) if their ownership or management involvement is significant. The company can support research with another faculty member as PI. If the inventor is involved in the research, not as a PI, his or her participation must be approved by the Provost and there must be a plan to manage any potential conflict of interest (see Conflict of Interest Policy).
Can graduate students be involved in research sponsored by a startup company at Georgia Tech?
Yes, and this is not unusual. The integrity of the faculty-student relationship must be preserved, especially if it is a faculty startup. In some cases, an independent oversight committee may be appointed by the Provost.
Can employees of the company use laboratory facilities at Georgia Tech?
Usually no, unless it can be shown that the facilities are unique and not commercially available. Any use of facilities must be approved by the department or center head, and usage fees paid. Access to the facilities must not interfere with faculty or student use, and the company cannot have any preferential access.
Do you assist with commercializing technology from institutions other than Georgia Tech?
No, but there are VentureLab programs at other units of Georgia’s University System. For more information, please visit our website.
What is your track record for the VentureLab Program?
Since its formation in 2001, VentureLab has evaluated more than 300 technologies. As of May 2006, 11 companies had completed the program, and together those firms have raised a total of $42 million. Nine products originating in those companies are being marketed today. As of April 2006, VentureLab had 39 business opportunities under evaluation.
Are VentureLab companies guaranteed admission to the ATDC, Georgia Tech’s science and technology incubator?
One goal of VentureLab is to prepare new ventures for admission to ATDC or EmTech Bio. However, not all VentureLab graduates pursue that path. VentureLab graduates must meet ATDC admission criteria and follow the application process.