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MU making $5m tech transfer investment

The University of Missouri System announced today that it plans to invest up to $5 million during the next three years to accelerate commercialization of intellectual property.

The goal of the Enterprise Investment Program to create more jobs across Missouri.

“This new fund is designed to help fund start-up companies in Missouri that can move the discoveries of our faculty from the laboratory to the marketplace,” President Gary Forsee said in his annual State of the University speech. “This will create more high-quality jobs, build the state’s tax revenues, and cultivate new revenue streams for the university.”

He added that he anticipates the new Enterprise Investment Program will leverage the university’s expertise in areas that include, but are not limited to, the life sciences, nano science, information technology, engineering, medicine/medical devices and energy.

“It is imperative that we transform our Missouri economy so we are embracing the high-tech industries of the 20th century,” said David Kerr, director of the Missouri Department of Economic Development.

Forsee said an outside advisory panel representing, for example, key technology, science and business sectors will be formed to review funding applications and recommend funding awards. This panel’s review process, which will include evaluation of business plans and proposed use of the funds, is slated to begin this summer.  The university hopes to make its first awards this fall. 

Eligible start-up companies—including those that operate out of university incubators across the state—must obtain an investment, whether raised or invested directly by the founder(s), at a level that shows a commitment to the company’s success.  Additional consideration will be given to start-ups with funding available from Small Business Investigative Grants (SBIR) and/or Small Technology Transfer Grants (STTR), and/or matching funds from other sources.   

Though not all of the requirements have been finalized, firms wishing to apply for these funds must meet a series of minimum standards, including:

• They must have licensed a University of Missouri technology;
• They must be located and licensed to do business in Missouri, and maintain employees and assets in Missouri;
• They must be committed to commercializing University of Missouri-owned intellectual property; 
• They must agree to grant the university an equity interest in the venture with a fair market value equivalent to the amount of the university’s financial investment;

        Last year the university received more than $308 million in externally sponsored research funding.  Faculty research currently generates more than $10 million a year in licensing income—with plans under way to increase licensing revenue to $50 million by 2014.