FAST START FSU

Purpose

The FAST START FSU program aims to simplify the startup process by establishing clear, fair, and standardized deal terms for FSU startups.

Eligibility

Any new startup created specifically to commercialize FSU intellectual property is eligible to participate in the program where at least one of the creator-founders is an FSU employee covered by the FSU Intellectual Property Policy.

The Deal

According to FSU policy, the transfer of FSU technology must always involve a license from the Florida State University Research Foundation (FSURF), the principal conduit for FSU’s Office of Commercialization. The FAST START FSU program provides increased transparency and fairness by offering standardized and favorable deal terms to all FSU startups who choose to participate.

Step 1. An Exclusive Option

FSURF will grant an exclusive option (at no cost) to license the identified intellectual property for up to six months to allow the startup company to develop a business plan and outline commercially reasonable diligence milestones. The company is encouraged to work closely with the FSU Office of Commercialization or other community service providers on this process.

Step 2. The License

FSURF will grant an exclusive license to the intellectual property for relevant field(s) as identified in the business plan to startups demonstrating a developed business plan and commercially reasonable diligence milestones. Certain types of intellectual property (e.g. know how) may be licensed non-exclusively. The business plan development and review process during the option period is intended to partially substitute for the more rigorous commercial due diligence obligations in typical license agreements. Developed to offer identical and favorable terms to FSU startups, the FAST START License has been designed to be a “no negotiation” license reducing the time and legal expense to get a license done so entrepreneurs can focus efforts on developing their businesses. The company is encouraged to work closely with the FSU Commercialization on this process.

Up-front licensing fee: None

Equity: FSURF will receive 5.0% equity stake in the company, non-dilutable until the investments in company or pre-money valuation equals $2 million.

Royalty Rates: No royalties due years 1-3

Sublicense: Startup (the licensee) will pay FSURF 20% of any sublicense revenue received.

Milestone Payments: None for Training materials, know-how, copyright and trademarks and other technologies. To ensure that FSU discoveries for new medicines get to patients in need, FSU requires that licensees to therapeutic technologies commit to significant financial and non-financial milestones that are highly tailored to the drug discovery and clinical development programs required. These typically require the commitment of tens or even hundreds of millions of dollars to very high-risk ventures, and our licenses are tailored to meet both the investors and FSU’s needs.

Annual Minimums:

Prior IP Protection and Reimbursement: Intellectual Property (patents, copyright, and know-how) will be managed by FSU with input from the participating startup. Reimbursement of patent expenses incurred by the University before the effective date of the license will be deferred until the earlier of three years or a major change of control event (sale, acquisition, public offering, merger, etc.).

Ongoing IP Protection Costs: Patent or other IP protection out-of-pocket costs incurred by the University after the effective date of the license will be due to FSURF within 30 days of receiving an invoice for such expense. Licensees benefit from the discounted rates for legal services negotiated by the University.

Diligence Milestones: Licensees are expected to make reasonable commercial efforts to move the licensed technology into the marketplace. Specific milestones designed to demonstrate progress will be mutually agreed upon and included in the license agreement.

Conflicts Management

Florida State University (FSU) encourages interested employees (faculty, staff and students) to pursue entrepreneurial endeavors consistent with FSU policies. Each employee participating in FAST START FSU will be required to disclose the new company as part of their annual outside disclosure requirement. In some cases, a more detailed conflicts management plan or other agreement mechanism may be required.

FSU entrepreneurs are encouraged to reach out to the Commercialization office, Research Compliance Programs, or Office of the General Counsel with questions or further assistance. It is the responsibility of the FSU entrepreneur to follow all applicable university, federal, and state regulations.

Resources Available to FAST START FSU participants

Maturation Funding

The FSU GAP program is designed to support the development of inventions or original works that have been produced by FSU faculty and staff. GAP funds projects to help them be more ready for license and development as a viable commercial product or service.

Co-Working Space

DOMI serves as a coworking space for companies and offers some general programs, resources, and events that can help entrepreneurs start and scale sustainable companies.

Support Organizations

Alliance of Entrepreneur Resource Organizations (AERO) is a coalition of public agencies and community non-profit organizations united to provide current and new businesses with resources to aid in their success.

BioFlorida is the premier statewide trade association for the life sciences industry, providing members with discount programs with select vendors (Including, Fisher-Scientific); state and federal advocacy; industry data; job boards and career fairs; and networking opportunities at regional events.

The FLSBDC offers assistance with company formation and no cost consulting for startup businesses.

THE NORTH FLORIDA INNOVATION LABS: A new 40,000 square foot laboratory facility offering incubation support for technology based startups.