Crowdfund or Perish!

Incorporate or perish!

Universities are now pushing professors to commercialize their research as the number of university inspired startups have risen 16% in 2013 from an increase of 5% in 2012 over 2011, according to the Wall Street Journal.

Called “spinouts,” fewer than 20% of these firms have received venture capital funding although about 18% have found angels. Thus, the universities are now starting their own funds to help with the University of California to pony up to $250 million. Others find alternative sources of funds including grants and even crowdfunding.

The schools like these new businesses, as they create a new revenue stream from the licensing of the technology and typically provide an equity interest of between 5 to 10%.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, Venture Capital and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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