Inventors' Portal

Ideas of Interest to BIOSTART

BIOSTART is a non-profit organization that incubates companies developing products in the broad category of Life Sciences. This includes not only traditional pharmaceutical products, medical devices and diagnostic products; but also environmental remediation, water purification, energy generation and veterinary products.

BIOSTART is based in Cincinnati, Ohio, and is principally funded by the State of Ohio. Our clients will do the bulk of their project development in Ohio.
  • What’s in this for BIOSTART?

    • BIOSTART was chartered by the State of Ohio to help create new small businesses that will in turn create wealth and new jobs in Ohio. Virtually all employment growth in the US in recent decades has been attributed to small businesses. And new Life Sciences companies, in particular, are eagerly sought because of the highly skilled, well-paying jobs they create.

      BIOSTART itself is accountable for finding, catalyzing and incubating new companies in Southwest Ohio. We know that not all companies will succeed, but we can amplify the overall success rate by offering our assistance on issues like Intellectual Property, financing, corporate management, regulatory, marketing, and planning so that the failures are mostly for technical reasons and not for easily avoidable reasons.

      BIOSTART is paid for its business assistance services through warrants granted by a client company, to be exercised at a future date for purchase of company stock for up to 5% of the company value.

      BIOSTART also provides risk reduction loans ranging from $5,000 to $25,000 and up to $75,000 per company to pay certain outside contractors or other expenses that will help the company attract investment, if approved. These loans are executed as convertible notes that may be repaid in cash, through installment payments or converted to equity upon a future funding round. No collateral personal or business collateral is required. If the client company fails, there is no obligation on the part of the principals to repay these amounts.

      After 11 years and 125 clients (with more than a dozen “graduated” companies), BIOSTART is still looking for new ideas to incubate.

  • Where do I start?

    • BIOSTART begins with a non-confidential review of your concept. Contact us to discuss the basic outline of your concept -- and your hopes and dreams of how it might be developed. You might also indicate your own desires on how you might be involved in the management and/or with other contributions.

      Thereafter, we will sign a Confidential Disclosure Agreement (CDA) so that we can evaluate the technical and business details of your project. At its own cost, BIOSTART will prepare a report detailing market opportunities, a top-line assessment of your technology, and an initial assessment of patent and other Intellectual Property (IP) protections that might be available.  This report will also include a preliminary execution strategy, which, among other things, takes into account your desired participation level to make the concept a reality.

      Finally, BIOSTART will prepare a proposal and client service agreement to provide your company with counseling and/or assistance in corporate and management structure, financing, laboratory and office space, and professional services so that your work can begin in earnest.  We may even provide salary for the CEO or COO, if needed.

  • Do I have to quit my Day Job?

    • The role of the "inventor" in a start-up company is quite varied.  The decision balances relinquishing control and the desire to retain a high degree of equity ownership.

      Many investors initially develop their concept on a part-time basis. With help from BIOSTART to assemble the right team, just about any inventor's desired level of effort can prove successful.

      In some companies, the inventor/founder possesses strong technical skills and experience and needs an experienced business expert to serve as the CEO of a company.  In such cases, BIOSTART can help find executives who will perform the required fund raising, planning, and corporate governance.

      Some inventors, however, desire to learn the required management skills as they grow their concept/company.  In these cases, BIOSTART will help inventors develop these skills and arrange additional management support, as needed.

      We can also assist in structuring other roles for the inventor/founder, as desired, including consulting, board membership, advisory board participation or other key roles that do not require full or part time employment with the company.

  • Can I protect my idea?

    • Every company should have some form of Intellectual Property protection.  In particular, investors look very closely at how well the company has positioned its IP.

      As you probably know, the patent process is very expensive and complex.  Timely, professional advice is essential. 

      Depending on the exact nature of your idea and its market, a preliminary patent application might be a good idea, but this also limits your "exclusivity" - the span of time you might be able to profit from your idea before competitors can use it.  A preliminary patent also requires a complete patent application to  be filed on a specific schedule, so the research has to progress as planned or else your protection could be voided.

      Other types of IP protection include copyrights, trademarks ("branding"), and trade secrets.

      Ultimately, the decision to file for IP protection is business decision which balances many factors, including cost. BIOSTART can help you determine what types of protection might be most helpful and introduce you to multiple, qualified, experienced patent attorneys who can assist with IP strategy, patent preparation and filing and prosecution.

  • How do I form a company?

    • Most people who have done it will tell you that forming a company is easy, and that keeping one running is hard.

      If you want to do it yourself, the necessary forms for creating a company are available online from several reputable sources. No attorney is technically needed. The cost is very low, and it only takes a few weeks before you can be in business.

      But the better question is: Why do you need to form a company? Answers might include:
      • separating and protecting personal assets from business liabilities,
      • creating a structure for effective management of a concept,
      • isolating different technical concepts so they may succeed or fail on their individual merits, or
      • providing a structure for financing.

      Attorneys provide important perspective and advice on these matters. BIOSTART can guide you to sources of legal counsel to identify the best way to structure your company to meet your goals.

  • Who might provide my funding?

    • What funding sources to seek is ultimately a business decision. BIOSTART is very involved with a number of regional funding sources, and our clients have been highly successful in getting their efforts financed. (Our clients have received over $180 million, to date.)

      BIOSTART is able to provide some early, direct funding (salaries, payments to contractors), but most clients will require more. Many of our clients seek federal grants (SBIR / STIR). Other sources include pre-seed, seed and angel investors and near-market-ready support from venture capital funds.

      It is very important to understand the advantages and disadvantages of each funding option. For instance, federal grants typically require no equity position in your company, but they can be limited in the amounts available and in their timing. Angel investors require a percentage of your company’s equity in exchange for the very high risk they are assuming. Venture funds typically seek management participation to protect their interests.

      Many start-up companies follow a standard path on financing. They begin with money from family and friends, as well as federal grants to get their idea through to prototype. Next, they call on angel investors to fund initial marketing and field trials. And finally, they ask venture funds for money to begin expansion in their key markets. Very often, there is a stock offering, a partnering agreement, or an outright buyer once the concept has been proven as marketable, profitable, and scalable.

  • The First Step

    • Name  
      Company Name if applicable  
      Email  
      Phone  
      Short, non-confidential description of concept (2-4 sentences):
       

©2007 BIOSTART  /  ALL RIGHTS RESERVED