Please note: Each proposal that Foragen receives is unique and therefore requires flexibility as regards development. The following discussion, then, is in reference to a standard rather than singular approach.
FAQs
- Why should I commercialize my basic science?
- Why should I consider starting a company to commercialize my science instead of licensing it to an already established company?
- I'm concerned about leaving my current job, and taking a risk with a new company.
- What criteria is Foragen looking for in a company?
- Why does my company need Foragen?
- How important is product development?
- Who will control my research?
- How much of the company will Foragen control?
- Will I have to relocate my facility to form a company?
- How will publication affect
business development?
Why should I commercialize my basic science?
The commercialization process develops scientific concepts into marketable technologies and products. Many scientists, understandably, are less interested in the process of product development and market placement than they are in science and research. However, a commercialization of your science does not negate or lessen the importance of scientific research and discovery. In fact, scientific discoveries are at the heart of valuable scientific technologies and products.
Why should I consider starting a company to commercialize my science instead of licensing it to an already established company?
Some scientists choose to license their science to companies who then take over product development and commercialization. At Foragen, we prefer, instead, to create companies around your science for the following reasons:
- commercial development can be achieved at a quicker pace
- founding scientists are more directly involved in the development and commercialization process
- founding scientists, as company shareholders, benefit more substantially from developed technologies and products
It is important to note that every scientific concept does not necessarily warrant the creation of an individual company. Some markets, quite simply, will be too small to warrant company creation. In these cases, licensing to an existing company may be your best option. However, it isn't necessary to have already determined your concept's company - creating potential before speaking with Foragen. In fact, when we consult with scientists, we help determine which route best serves your science — formation of an individual company, or licensing to an already existing company.
I'm concerned about leaving my current job, and taking a risk with a new company.
In certain situations, it may not be necessary that you immediately leave your current job. Of course, the company's success is directly linked to your science. While Foragen can create a well-managed company, it cannot replace your scientific ability and knowledge. Consequently, your commitment to the new company will be a prerequisite of Foragen investment.
Should you choose to remain in your current job, you may wish to determine if there are Postdoctoral or Graduate Students with sufficient knowledge to move to the company. In this case, you will also want to determine if your laboratory can provide some support for the technology.
As for risk, there is always a risk involved in new ventures. That is why Foragen does a comprehensive assessment of your proposal-to determine your company's market viability and chances for success.
What criteria is Foragen looking for in a company?
For a comprehensive assessment of company criteria, please Contact Us..
As experts in the field of advanced agricultural technology, we expect a successful prospective company to have:
- valuable intellectual property based on top-rate science
- strong market opportunities with a distinct competitive advantage over other companies marketing similar products or services
- a clear, focused plan to efficiently develop products and services
- a strong pipeline of new products
- a network of strategic partners
Often, projects can not initially meet every criterion. However, if we see the company's potential to eventually fulfill the entire criterion, we consider investment. Even in instances where you may have an idea with no existing patent, we still consider investment — although the probability that your intellectual property can be patented is important.
Additionally, in cases where someone else has funded your research, we will consider your project. Definitely, ownership of intellectual property has to be finalized before a company can be created. Usually, though, this is manageable.
Why does my company need Foragen?
Most young companies fail because of poor management. Often, outstanding scientists believe their strengths as researchers can be equally applied to company management. While this is sometimes the case, it is more often the exception than the rule.
A venture fund such as Foragen allows you, the scientist, to do what you excel at — science, while we take care of the business aspects. Foragen will help you develop your science into a company from an early stage by providing management expertise. In addition to monetary investment, Foragen offers:
- company creation services
- organizational support (payroll, benefits, accounting, etc.)
- business, marketing, financial and commercialization strategies
- links to our extensive network of industry contacts
- assistance in raising additional rounds of financing
Importantly, Foragen is unique in Canada, in that we are the only early stage venture fund that is focused on the Advanced Agricultural Sector.
How important is product development?
Product development has a singular goal — to produce a valuable product as quickly and as efficiently as possible. As a result, product development is an exciting and demanding process. Creativity, discipline, and expertise are essential. The key to product development is to "fail quickly," meaning you must determine which approaches have the best chance of success and abandon research not aligned with the company's goals.
Product development, however, is not undertaken with a disregard for sound science. In fact, first-rate scientific expertise is a primary component of product development. Many scientific discoveries can be made during the process of product development, which can then accelerate the development process, strengthen the intellectual property, or lead to entirely new products. These development-related discoveries can be as exhilarating and satisfying as academic discoveries.
This will depend on you. Some scientists leave their academic positions, and join the company as Chief Scientific Officer or Vice-President/Research. These individuals have significant involvement in the scientific research of the company. Other individuals continue with academic research, thereby directing only a portion of the company's research interests and being less involved in the company's research.
How much of the company will Foragen control?
Many scientists are initially concerned with giving up 50% ownership of the company. Investment, however, is needed to realize the commercial potential of your science. At first, Foragen usually controls 40% to 60% of the company. Then, to raise capital during development, Foragen will usually sell additional shares to other venture funds, on a public exchange or to corporate investors. This process will eventually reduce Foragen ownership to 10% to 20%. Ideally, the 10% to 20% of shares we own at the end will be worth significantly more than the 50% we owned at the beginning. Therefore, with solid development, how much of a company you own becomes less important than the value of the portion you own.
This holds true not only for Foragen and other corporate investors, but for the founding scientist as well. For example, a $1.5 million investment from Foragen for 50% of your company would immediately increase the value of your shares from $0 to $1.5 million. If the company is successful, an eventual 10%-20% ownership could be worth tens of millions of dollars.
Will I have to relocate my facility to form a company?
Initially, Foragen strives to keep founding scientists in their existing institutions. Eventually, though, it will become necessary to move into a separate facility.
How will publication affect business development?
Publication of your research work in top scientific journals gives Foragen and future investors sustained confidence in your scientific abilities. Strong science, as we have emphasized, is the foundation of your company and will increase its chance of success. Communicating your scientific expertise through publications, conferences and patents is essential in building the reputation of the company. Additionally, publication may be a requirement of the institution that initially funded your research.
At the same time, a company's success cannot be put at risk by revealing information to competitors. Consequently, the company must insure that appropriate steps are taken to protect the intellectual property before it is released to the public at a conference or in a scientific publication. Usually, this process takes a few months. Many scientists also find that dealing with a good patent agent can actually strengthen the science, as strategies for improving or broadening the patent often require additional research.
