Startup Funding Espresso – When Should You License Your Technology Instead of Building a Startup

When Should You License Your Technology Instead of Building a Startup

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In commercializing your technology there are two primary paths:  building a startup or licensing the technology to others.

You should consider licensing your technology when the following conditions exist:

The development cost of bringing the final product to market is very high.

There’s a high level of risk to the startup from market conditions, product development, and sales execution.

There’s a great deal of competition in the market already.

There’s going to be a great deal of competition in the near future.

There may not be enough revenue to sustain a startup into a full-fledged business.

The inventor does not have sufficient time or financial resources to launch a startup.

The amount of funding required to launch the startup is high.

The technology is a minor value-add to the customer’s solution.

Licensing the technology is a better path for many technologies because there’s insufficient market demand, and high development costs to create the final product.

Consider licensing your technology.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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