Innovative tech transfer business models

I am currently exploring (see: https://www.venturi-labs.eu) a different approach to Technology Transfer. The main thesis is that there are valuable instruments developed in research labs but without the potential of becoming products that drive the creation of a company around them.

For example, a product that has a total of 20 to 50 customers in the world will not generate the type of numbers that warrant a startup. At 100k€ per instrument, the total revenue potential is "just" 5M€.

On the other hand, if every year 10 customers would purchase, this could easily become a break-even situation for 5 years.

One of the challenges of Business models for research based tools is that there's a large upfront investment to develop what will be sold.

My refined thesis is the following:

• The market for research tools within the research community can be large enough to create a positive cash-flow on a product-by-product basis.
• However, the total lifetime value of a product can be limited in time to few years and few customers.
• The alternative path is, therefore, to create a system that allows very quick market size estimation (business development), fast go-to-market (6 month development cycles, not 5 years).
• Moreover, the system should create reusable elements: commercial engagement should be fast at identifying potential customers, leverage networks, and automate outreach campaigns with clear messaging. Hardware should be built on modular elements, that can be combined on more than one way. Suppliers should be selected carefully. Software can be the homogenising layer that allows integration, and value consolidation.

The challenge is multiple: universities which take forever to sign licensing deals. Public institutions which delay payment arbitrarily. Standard belief that ideas are going to make billions instead of acknowledging small market, large impact type of situation.

I don't think traditional investors would like to see a pitch that does not show clear exponential growth and big margins. However, a quick scan for deep-tech companies around show that we should be embracing a slower pace, small volume manufacturing, and a continuous improvement cycle.