The stage-gated process has been implemented to support commercialisation of University-owned intellectual property developed by staff and Post-Graduate Researchers (PGRs). The outcome of these Opportunities will typically be the formation of a new spin-out company or a licence agreement with a third party. The process has four gates which must be passed in order to access the resources available to support onward development/progression of the Opportunity through the pipeline. Currently, monthly review meetings are held to consider submissions to each gate.
Gate 1
Gate 1 approval is based on a high-level understanding of an Opportunity and crucially the ownership status of Intellectual Property that has been disclosed through the invention disclosure portal. Gate 1 consists of a short paper submission which is championed by a Commercialisation Manager/Business Development Manager.
At this Gate, the Opportunity Team must meet the following criteria
- Invention disclosure complete
- Informal prior art (web) search undertaken
- Understanding of potential benefits in at least one market sector
The decision will be made by the IP & Commercialisation Team at their regular monthly meetings.
A positive decision will release a budget of up to £2k for the Opportunity team to use for related activity such as meeting with patent agents and undertaking a prior art search to determine if there is potential for IP protection.
The first spend from the budget is to be made within 6 months from approval and the final spend within 12 months from approval.
Gate 2
Gate 2 approval is based on more detailed information about the commercial potential of the Opportunity; the next steps for the Opportunity and the commitment of the Team to supporting commercialisation. This requires the Team to present to panel of 3 external members with early-stage commercialisation experience and IP knowledge. At this stage the Team do not have to decide whether the route to commercialisation is licensing or spin-out company formation.
At this Gate, the Opportunity must meet the following criteria
- Clear IPR position;
- Market sector(s) defined and quantified at high level;
- Lead in technical Team identified; and
- Indicative plan to reach Gate 3
The decision will be based on recommendations made by panel members.
A positive decision will release a budget for up to £10k for the Opportunity Team to use for activity that will progress the team towards meeting the criteria for Gate 3.
The first spend from the budget is to be made within 6 months from approval and the final spend within 12 months from approval.
Gate 3 - Spin Out
For spin-out Opportunities, the Team must receive written (email) approval from the relevant Head of Department/School and Faculty Dean, that they are supportive of the Opportunity progressing with the support of Strathclyde employees and should include confirmation of the time commitment that will be allocated. In addition, approval will be subject to a commercial champion having been identified. At Gate 3, a paper will be submitted one week in advance and the team will present a 3-minute pitch to a panel of 3 external members who will assess the opportunity and approve that spin-out is the most appropriate route.
At this Gate, the Opportunity must meet the following criteria
- One or more quantifiable markets are identified, together with routes to market;
- Roles and names (or vacancies) for all key people required for progress towards Gate 4 are provided;
- All time commitments of academic staff are stated;
- An indication of any additional University resources that may be required (e.g. any access to equipment); and
- A clear plan for progressing to Gate 4 with commercial and technical milestones and indicative timescales.
The decision will be based on recommendations made by panel members. A positive decision will release an allocation of funding of up to £30k to support the commercialisation plan.
Gate 3 – Licence
If a team decides that licensing is the most appropriate route for the Opportunity and that funds are required to secure a licence deal, they have the option to present to the IP & Commercialisation Team, for an equivalent level of support as is available for Gate 3 – Spin-out.
The decision will be based on recommendations made by panel members. At this Gate, it must be demonstrated how the funds will deliver tangible progress with respect to securing a licence deal.
Gate 4 – Spin-out
The final gate for Spin-out companies involves the submission of a paper championed by the commercialisation manager for final approval. This paper will be reviewed by the IP & Commercialisation Team with the decision made by the Head of Commercialisation and the Director of IIE.
At this Gate, the Opportunity must meet the following criteria:
- All roles in Founding Team are identified with names, biographies and a statement on the terms and involvement (financial and time) of all University staff;
- Clear statement of where the proposed company will trade from and on what terms; in the case that University space or equipment is required, the terms on which this has been agreed or is made a condition subsequent;
- Statement that terms for access to all relevant University IPRs are agreed;
- All other proposed conditions subsequent are listed; and
- Statement of all University resources deployed to date in support of the Opportunity.
A positive decision means the opportunity is approved and requires a signature from the Director of IIE and countersigned by the Chief Commercial Officer and the company can be formally spun out. The balance of Gate 3 funds can be transferred to the company upon spin-out. The University will take a 20% equity stake in the company post-seed funding.
Gate 4 – Licence
The final gate for licensing consists of approval for a licensing deal by the Head of IP & Commercialisation (to be signed by the Director of IIE).
At this Gate, the Opportunity must meet the following criteria:
- Due Diligence Exercise completed on Licensee(s);
- Prior agreement of licensing terms;
- Business plan/ Commercialisation Plan has been provided by the Licensee(s); and
- Summary of the licence agreement, including risk assessment, prepared by the IP & Commercialisation manager.
Meeting Schedule and Structure
A meeting will be held each month during the academic year, from September to June.
The typical agenda for each meeting is as follows:
9.30am – Gate 1 papers - internal panel only
10.00am – Gate 2 presentations - internal plus external panel members and opportunity teams (presenting). Maximum of 4 presentations
1.00pm – Break for external panel members; Gate 3 Licence - internal panel only, when required
1.30pm – Gate 3 Spin-out - internal plus external panel members and opportunity teams. Maximum of 2 opportunities
2.30pm – Gate 4 internal panel only. Maximum 1 opportunity
3.00pm – Portfolio Review – IP & Commercialisation Team
Additional Papers
A further paper on Governance & Decision Making is also available