Public Funds for Commercialization of Inventions
$2 million. Size of the “The University of Texas System's newly-created $2 million [Texas Ignition Fund] is meant to facilitate the commercialization of technologies or products developed within the UT System. [The goal of the commercialization grants are to] speed the commercialization process and, over time, produce significant contributions to the Texas economy and society. …[As of April 2008 the fund had] granted a total of $465,000 to 14 inventions that have the potential to become commercialized. … Each grant recipient was awarded grants ranging from $10,000 to $50,000. The funds can be used for personnel, equipment, supplies, business plans, and in limited instances, faculty support and patent costs. Among the winning inventions was a tiny chip that could be implanted in humans and diagnose acid reflux. Another grant recipient involved an advanced process for extracting lipids from algae to produce cheaper biofuels.” (“Texas Ignition Fund sparks 14 inventions,”Austin Business Journal, Wednesday, April 9, 2008)
Are you looking for help finding funding for your invention? Are you looking for angel investors that invest in inventor and entrepreneurial ideas? Or are you looking for help with invention licensing? If so, Inventors Workshop, a nonprofit organization that has been providing inventor help services for more than 35 years, may be able to help you out. You can contact them at Inventor-Help-Services.org, Or call them at 805-879-1729.
Private Sector Funding Structures
25% to 33%. Range recommended for percentage of profits to be shared by inventor with funding backer. “[Y]ou might want to give some thought to getting a backer. Not a partner, a backer. In exchange for funding the legal and miscellaneous costs, the backer receives a portion of the net profits. The angel is not a partner — it’s your invention, and you call the shots. The percentage for the backer [of an invention] is negotiable. If I were doing it, I’d offer my backer 25 percent, and I’d be willing to go up to a third. That’s purely subjective, and your input is as valid as mine. The backer would be investing in you the same way an angel invests in a Broadway show.” (Harvey Reese, "How to License Your Million Dollar Idea," Second Edition, John Wiley & Sons, Inc., New York, 2002, p. 77)