Why does CU seek equity in consideration for licensing CU IP?
Equity is the currency most readily available to start-up companies. Since start-ups usually begin as a concept, they need time to assemble the resources necessary to maximize chances for success. Often, the TTO, and the faculty inventor wishing to create a start-up, are in a kind of chicken and egg situation. The start-up needs a secure commitment from the University that it has, or will soon obtain, full and exclusive rights to market a particular technology and the University seeks to grant licenses only to entities it believes have the capability of rapidly, and profitably, commercializing the technology.