CloseWhat is a start-up?
5 MINUTE READ
Starting a company based on your research ideas can be a way to make real impact. And founding a start-up has a lot in common with the business of research.
Research impact means using your research to contribute to:
- the economy
- society
- culture
- national security
- public policy or services
- health
- the environment
- quality of life, beyond contributions to academia.
There is limited impact if the only outcome from a research project is publications. But there are other pathways to impact, including:
- A partnership between researchers and industry. This takes the form of joint research. Researchers transfer the intellectual property (IP) from this research to the industry partner. This is usually through a license agreement.
- Technology transfer from the researchers to a spin-out company. A spin-out is a new company founded by the University. It is at least partly owned and controlled by the University. You can create impact from your research even if you don’t have a role in founding or running the spin-out. We transfer access to the IP to the spin-out. Spin-outs are different from start-ups.
- The creation of a start-up company. A start-up is a new company, founded and run by researchers with the support of the University. Launching a start-up aims to create and grow a self-sustaining business. The business is based on the founders’ research ideas.
Why get involved in a start-up
Why get involved in a start-up
There are many reasons to get involved in founding a start-up company based on your research. For example, you may want to:
- play a significant role in achieving impact from your research
- explore an alternative career to academia
- create employment for your students
- embark on an exciting new path as a business founder and owner
- take on more responsibility and independence
- create a partnership between the University and your start-up. This could bring prestige and research contracts to the University
- discover and lead new research ideas and directions
- reap financial reward.
Although some start-up founders become very wealthy, most don’t.
It's more likely that your financial situation won't change much, but you may enjoy some or all of the non-financial benefits. This is likely if you persist as an entrepreneur and manage risk wisely.
A word of advice: don’t get involved in a start-up for financial reward alone, or you will almost certainly be disappointed.
Consequences for your University job
Consequences for your University job
How your involvement with a start-up affects your University job depends on your circumstances.
In the most extreme case, founding or co-founding a start-up can involve leaving academia and starting a new career with the start-up.
The decision to change careers is a big one. This is especially so if you've invested years or even decades in your academic career.
The founders of many successful start-ups stayed at the University and remain successful academics.
For example, Professor Rob Scholten in the University’s Department of Physics incubated MOGLabs on weekends. Even now he spends several days a week in his University lab.
Even part-time involvement in a start-up can take time away from academic activities. But start-ups can also involve similar activities like:
- research
- teaching
- administration
- work with professional societies
- publication
- applying for research grants.
Universities and funding bodies are becoming more interested in academic research that leads to commercial and community impact. Being a co-founder of a start-up can have a positive impact on your academic career. The University is continuing to develop support for staff participation in start-ups.
What do academics know about running a business?
What do academics know about running a business?
As a researcher, you already know a lot about running a business. The research business has a lot in common with commercial businesses. For example, in your research business:
- your customers are other researchers
- your product is publications
- a valuable product creates opportunities for your customers. It helps them do more of their own research.
- the currency that measures the value of your product is citations.
- your investors are the University and your funding bodies
- the CEO is the research group leader. Their role is to create and communicate a vision that inspires the team – postdocs, students, technical support, your customers and your investors.
You can use a logical, iterative approach to create and test business ideas. This has features in common with the scientific method used in research.
Researcher’s business skills are most valuable in the early, or discovery, stages of a start-up. As the start-up evolves and matures, different leadership skills are often necessary. So, if a start-up is successful, its founders may not run it forever.
What kinds of research ideas could drive a start-up?
What kinds of research ideas could drive a start-up?
Research groups share important characteristics with commercial ventures, but not all research ideas can become successful businesses.
The most suitable ideas are the ones that solve significant and immediate problems for customers.
Novelty and scientific excellence are integral to research. In the commercial world, they're only valuable when they meet customers’ needs.
Potential start-up founders must understand:
- who their customers are
- what problems they face
- what they value.
Find out about how to assess commercial potential and learn about:
- the process for thinking about these questions
- assessing the potential commercial viability of your research ideas.
Life sciences start-ups
This section is relevant to all University researchers, in all fields, who are 'start-up-curious'.
Start-ups in the life sciences can have important differences from start-ups in other fields of research. In this section, we use the term ‘life sciences’ to include:
- therapeutics, or drugs, to cure or manage diseases, in animals and humans
- diagnostics, tests and devices to find diseases
- medical devices to track and cure diseases
- digital health or eHealth. That is, healthcare hardware, software, mobile devices and applications to enhance healthcare delivery.
Manage conflicts of interest
Manage conflicts of interest
If you continue to work for the University when you're involved in a start-up, conflicts of interest can come up. You can learn how to identify potential conflicts of interest and get guidance on how to manage them.
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