The University’s Start up Grant, Essay Example

Analyzing the case study attached, it is evident that the company that sponsored the research has a different direction in mind than the university and the investors. It is possible that the invention can be utilized in oil drilling, however, this was not the initial purpose of the research. Further, the company would be in charge of the direction of the research, as well as the funding.

Using the university’s start up grant and finding additional funding, however, is a more attractive solution. People would be able to work on the original plans, while it is likely that angel investors would be interested in the potential of the new product. The exchange of 60 percent of the equity would guarantee that the investors will do everything for the new product’s success; they will be financially motivated. Further, the current researchers would be able to work together on the product development.

While the professor lacks business and entrepreneurial knowledge, angel investors would be able to support the newly founded company in creating business plans, setting up an infrastructure, and running the operations.

Licensing the invention out might mean that the original plans of the inventors would never be completed. Further, the offer of the oil company for funding the research is not suitable for creating the product and generating sales fast. The funding made available would not cover the costs associated with testing, materials, and human resources. It is recommended that the university team seeks support from investors and puts together a business plan, portfolio featuring the potential of the future product. It is also important that the team completes a market research to back up the estimated ROI (return on investment) figures and to contact clothing manufacturing companies that would be interested in using the technology.