Glossary

Notre Dame Office of Technology Transfer
What is the Notre Dame Office of Technology Transfer (OTT)?
What is the mission of the Office of Technology Transfer?
Where is the Office of Technology Transfer located?

Innovation Park@Notre Dame (IPND)
What is Innovation Park at Notre Dame?
What are the benefits of locating at IPND?
Where is Innovation Park at Notre Dame?

OTT & IP@ND
What is the difference between the Office of Technology Transfer and IP@ND?
How do the Office of Technology Transfer and Innovation Park at Notre Dame work together?

Intellectual Property and Patents
What is a patent? How do I get a patent? What protection does a patent give me?
What is a provisional patent?
How much does a patent cost? Who pays for the patent on my invention?
What do I need to do to get a patent for my new invention?
How long does it take to get a patent?
My graduate student helped with the research that led to my invention. Is she an inventor, too?

The Technology Transfer Process
How do I get started if I want to commercialize my new invention?
What happens after I disclose my new invention to your office? What are the steps you go through to get it patented and licensed?
Do you need my help to get my invention commercialized?
If so, how much time will it take?
I understand that inventors get to share in any licensing income the University receives for my invention. How does that work? How is the licensing income distributed?

Starting a Company
I am considering starting a company. Where do I begin?
How does a company based on Notre Dame technology get started?
What are the steps along the path from lab to market?
Where do I find investors and talent?
What resources are available to help new companies with financing & talent?
How do I obtain a license to ND technology?
Do I have to leave ND to start a new company?

Conflict of Interest, Conflict of Commitment, & Outside Activities
What is the difference between conflict of interest and conflict of commitment?
What are Notre Dame’s rules on each? Where can I find the policies?
I’ve heard that full disclosure resolves most conflicts of interest. Is that true? If so, who do I tell? If not, what do I need to do to resolve the conflict?
A colleague in my department said I need to submit an Outside Activities form to do any work outside the University. Is that true? Where can I get one and who has to sign off on it?
I want to help commercialize my technology. What do I need to be concerned about if I am the founder of the company that commercializes my technology, the company asks me to consult for them, or the company wants to make me a shareholder in return for help with technical matters?

What is the Notre Dame Office of Technology Transfer?
The Office of Technology Transfer (OTT) exists to help commercialize new University technologies. OTT is a University function that operates within the Office of the Vice President for Research. The ultimate functions of OTT are:

To identify and evaluate new Notre Dame technologies,
To secure legal protection (patents) for ND technologies,
To market those technologies to companies that are well positioned to bring them to the
marketplace,
To negotiate and execute licenses transferring rights in ND technologies to such companies,
To collect the licensing income, and
To distribute the net proceeds to ND inventors, their departments, and the University in accordance
with the University’s intellectual property policies.

What is the mission of the Office of Technology Transfer?
The Office of Technology Transfer is a business-oriented service function focused on putting new Notre Dame technologies to work in the marketplace. Specifically, OTT helps University faculty, research staff, and students identify, protect, market, and license promising new technologies to industry, thus bridging the gap between Notre Dame and industry and helping to establish partnerships that can make useful new technologies available for public benefit. In addition to the societal and financial benefits that may result, OTT values such partnerships for the opportunities they may provide for research collaborations between Notre Dame and its industry partners and for introducing Notre Dame students to potential employers.

Where is the Office of Technology Transfer located?
The Office of Technology Transfer offices address is:  940 Grace Hall, Notre Dame, IN  46556.

What is Innovation Park at Notre Dame(IPND)?
Innovation Park at Notre Dame is a 501(c)3 non-profit organization wholly owned by the University of Notre Dame.
The mission of Innovation Park is to facilitate the transformation of innovations into viable marketplace ventures. To accomplish this mission, IPND convenes innovators from different sectors, including faculty, students, alumni, and partners of the University of Notre Dame.

What are the benefits of locating at IPND?
Innovation Park exists to serve innovators and their businesses. IPND is prepared to assist companies that have signed leases with the Park or prospective clients that wish to learn more about the Park’s offerings.
Innovation Park offers companies space and services tailored to meet their specific needs, allowing innovators to focus on achieving their business milestones efficiently and expediently. IPND is prepared to serve clients with needs across a range of business development stages, from incubation to acceleration. IPND also has space and services available for established companies licensing technology from Notre Dame or those with “intrapreneurial” venturing needs.

SPACE                                                                                                                               Back to the top
Innovation Park is located on 12 acres adjacent to Notre Dame’s campus. Its first building is 55,000 square feet, with the following types of space available:
Greenhouse: The Greenhouse is unique space intended to foster innovation for ventures in their earliest stages of development. Based on the principle that dynamic collaboration results in more commercially viable ventures, the Greenhouse provides space and technology for new ventures to brainstorm and collaborate with business advisors and market experts on critical commercialization issues.
Private offices: Custom-built private offices are available for companies who require more extensive space for their employees and business activities. Private offices can be build in tandem with laboratory space if required.
Laboratory space: Wet and dry laboratory space can be custom built for clients who have technology or business requirements that may require more specialized space, including the use of water, direct ventilation and specialized pipe utilities.
More customized space solutions can always be discussed with the Park.
A mixed-use facility, the building also features collaborative spaces, conference rooms and common areas. A multitude of flexible workspaces and collaboration tools, combined with high-technology equipment and virtually unlimited bandwidth via the region’s dark-fiber network allow clients to thrive in an environment conducive to innovative thinking, collaboration and business growth.

SERVICES
Advisory Support—Innovation Park works closely with clients to assess and develop their ventures’ business potential by assisting with feasibility analysis, market assessment and segmentation, business plan refinement, and general business support. Clients have access to Park staff, business advisors and professional service providers drawn from the Park’s network of resources. For ventures in their earliest stages, Innovation Park can help facilitate the business formation process and assist in determining very critical early milestones to catalyze business growth.
Business Networking—By building strong relationships with industry experts, potential customers, leadership talent, service providers, and others, the Park can provide its clients with timely access to resources that are essential for successful commercial development.
Contact with Early Stage Capital Providers—Innovation Park cultivates relationships with investors and other providers of early-stage funding so that clients can explore appropriate funding avenues and have strong leads for funding resources when they need capital to support the growth of their ventures.

Where is Innovation Park at Notre Dame located?
Innovation Park’s physical and mailing address is:  1400 E. Angela Blvd. South Bend, IN 46617.  Their telephone number is:  574-631-8825.

What is the difference between Office of Technology Transfer and IP@ND?
The Office of Technology Transfer (OTT) is a Notre Dame administrative office that protects and licenses University technologies. OTT works with faculty from the earliest stages of invention through to patenting, marketing, and licensing their technologies.
IPND is a non-profit organization wholly owned by Notre Dame that provides space and a range of services, including business advisory support and networking assistance. IPND client companies will typically be interested in commercializing University technologies or engaging in collaborative research with ND faculty. Companies may also engage with IPND to take advantage of Park space, services and access to other University talent and resources.

How do the Office of Technology Transfer and Innovation Park at Notre Dame work together?
While each has a distinct role in helping commercialize ND technologies, OTT and IPND work closely together to engage faculty in the process of moving their technologies out of the University and into industry. Faculty should feel comfortable talking with representatives of either office about the tech transfer process, recognizing that OTT will generally take the lead on the front end of the process and that IPND can play a crucial role in helping marshal the resources that a new start-up company needs.

What is a patent?
A patent is a legal monopoly granted by the government to the inventors of a novel, unique, and useful process, compound, or manufacture. A patent defines the invention and teaches others how to duplicate it. The person or entity owning rights in the patent can prevent others from practicing the claims of the patent.

What is a provisional patent?
A provisional application for patent is a type of patent application filed with the US Patent and Trademark Office that does not mature into an issued patent unless a non-provisional patent application (usually a utility patent application) is filed by the applicant within one year. Provisional applications require only a specification (complete written description) of the invention for filing, and can thus provide a relatively quick and inexpensive means of establishing an early filing date with the USPTO. Provisional patent applications lapse one year after the filing date and the benefit of the early filing date is lost if the application is not converted into a non-provisional (i.e., utility) application.

How much does a patent cost?  Who pays for the patent on my invention?
Provisional patent applications (PPAs) are inexpensive to file – the filing fee is just over $100. However, as described above, PPAs still require a complete description of the invention. If you have provided a complete description, our office can assist in filing the provisional application and the cost is limited to the filing fee. If we elect to have an attorney draft the PPA, the cost will increase substantially, depending on how much time it takes the attorney. In any event, PPAs do not mature into issued patents and so the costs are generally limited to the filing fees (and attorneys fees in some cases).
When we refer to the cost of a patent, we are usually referring to the cost of a non-provisional patent application (typically a utility patent application). The cost of a US utility patent, from application through prosecution to issuance, can be $30,000 or more, depending on the complexity and scope of the application and the actions taken by, and in response to, the patent office. The cost for worldwide patent coverage can be many times greater. These costs are paid by the University under funds managed by the Office of Technology Transfer.

What do I need to do to get a patent for my new invention?
The patent process begins with your disclosure of the invention to the Office of Technology Transfer. See the discussion below under the question “How do I get started if I want to commercialize my new invention?”

How long does it take to get a patent?
The time of pendency for a patent application in the US patent office varies considerably and is dependent on a number of variables, including the complexity of the invention, what is claimed, the prior art in the field, and other factors. The typical term of pendency in the USPTO is currently 3 – 5 years.  For an insightful look at how the term of pendency varies based on the underlying technology, see Prof. Dennis Crouch’s article, “How Long Do I Wait for a First Office Action?”

My graduate student helped with the research that led to my invention. Is she an inventor, too?
It depends. Did she contribute to the conception of the idea and reduction to practice of the invention? If so, she is an inventor. However, if she acted as an assistant, followed your instructions, and performed the necessary labor under your tutelage, then she probably isn’t an inventor. Inventorship is a question of law and is best determined by an experienced patent attorney when there is a question.

How do I get started if I want to commercialize my new invention?
As soon as you recognize that you have a new discovery or invention that might be useful to others and could be turned into a commercial product or service, you should contact the Office of Technology Transfer. Click here for Invention and Technology Disclosure Form.
An OTT licensing associate will review your disclosure and then contact you to gain a layman’s understanding of the technology, discuss possible commercial applications, verify the sources of funding that led to the invention, learn about any publications or other public disclosures of the technology, get a sense of competing technologies or research efforts addressing the same or similar problems, and pick your brain about colleagues in industry that might be interested in the technology.
Later conversations with OTT and ND’s patent counsel will address patent matters, such as any publications or prior art, to begin to build an understanding of the patent landscape and where your technology fits into the overall picture.

What happens after I disclose my new invention to your office? What are the steps you go through to get it patented and licensed?
The process itself is fairly straightforward, at least in theory. Upon disclosure, there are two key questions that must be answered:

• First, we must ensure that the ownership rights are properly defined. In many cases, the research sponsor(s) may have rights in any technologies that result from the funded research. This is always the case with federally funded research and inventions. By law, the US government retains at least a non-exclusive, royalty-free license to use the invention for its own purposes ((Pub. L. No. 96-517, commonly referred to as the “Bayh-Dole Act”, 35 U.S.C. §§ 200 – 212).
• Once ownership rights have been established, the Office of Techology Transfer (OTT), with your help and the help of its patent counsel, will try to fairly quickly address the second question, which is to determine whether your invention is patentable. Since most technologies will require a significant investment of time, money, and other resources to bring it to market, companies are unlikely to make the necessary investments without some assurance of patent protection.

After the questions of ownership rights and protection have been addressed, the technology will be evaluated for its market potential by identifying likely commercial applications, the effected industries, size of potential markets, existence (or lack) of competing products/technologies, major market players, and so on. With such information in hand, OTT can begin to form a strategy for how to position the technology, what markets to approach first, and which companies to target. Concurrently, we may begin to think about whether the path to commercialization is best served via a start-up company, and Innovation Park at Notre Dame can be a strong partner in this analysis.
Finally, if the market research and input from industry suggest that the technology has a chance in the market, and if we’ve been successful in generating some industry interest, we hope to move into negotiations with one or more potential licensees. The negotiation phase is marked by aligning the interests and capabilities of the licensee(s) with the market opportunities for the technology and trying to exploit those opportunities as fully as possible. If successful, the negotiations will culminate in a signed license agreement, the transference of rights to the company, the promise of an income stream to the University, and the beginning of a fruitful relationship for the University and the company(ies).
A graphic showing this process is available here.

Do you need my help to get my invention commercialized?
Yes.

If so, how much time will it take? Back to the top
It depends, but plan for 50 hours the first 12 – 18 months.
Realistically, your technology is not likely to move very far down the path towards commercialization without your help. For one thing, no one knows the technology as well as you. Most University technologies are rarely beyond the bench top when the patenting process starts and the Office of Technology Transfer (OTT) begins to market them to industry. Thus, at a minimum your participation is required on two fronts:

• To help educate the patent attorney about the underlying science and the novelty of your invention. The invention disclosure document is only the first step in providing all the information a patent attorney will need to draft a meaningful patent application.
• To help OTT (and later, potential licensees) identify the commercial applications for your technology and the economic benefits it will enjoy as a marketable product.

Your time commitment is entirely up to you. However, you should expect to spend at least 50 hours helping patent counsel and OTT during the first 12-18 months, depending on when/if a utility patent application is filed.

I understand that inventors get to share in any licensing income the University receives for my invention. How does that work? How is the licensing income distributed?
The University’s Intellectual Property Policy provides a mechanism for University inventors to receive a share of the net licensing income realized from their inventions. In short, the University recaptures any direct out-of-pocket expenses incurred in patenting and licensing your invention and then shares the net revenues with you and your co-inventors (if any). In addition, if the net revenue stream is large enough, your research account, your department, and your college can also share in the rewards.

The royalty sharing distribution looks like this:

Net revenues	Inventor (s)   share	Research account	Department	College	University general fund
Up to $100,000	50%				50%
$100,000 – $1,000,000	25%	25%	25%		25%
Over $1,000,000	25%		15%	10%	50%

I am considering starting a company. Where do I begin?
The Office of Technology Transfer and Innovation Park at Notre Dame are the best starting points for initial consultation regarding your new venture development interests. They can help you understand key considerations, such as:

• Your desired role in the venture
• Other management resources needed
• Possible avenues for funding resources
• Other avenues for support

OTT and IPND can also make referrals as appropriate to other organizations on campus and in the region based on the needs of your venture.

How does a company based on Notre Dame technology get started?
Filing the invention disclosure with OTT is always the first step. After that, the path to commercialization always leads to a license from the University to the company. Whether the technology is commercialized by a large, established company or a new start-up, the license is the mechanism used to give the company the necessary rights to use the University’s technology.

What are the steps along the path from lab to market?
1.   Idea
2.   Proof of principle
3.   Identify market applications
4.   Validation of technology/prototype
5.   Determine/verify market potential
6.   Patent
7.   Scale up
8.   Business plan
9.   Recruit management
10.   Seek investment
11.   Product development & engineering
12.   Establish distribution/channels to market
13.   First build
14.   First sale
15.   Second generation build
16.   Sales growth
17.   Profitability

Where do I find investors and talent?
This is a key question. Finding the right talent may be the most critical of your early decisions. Finding money is not easy, but money follows talent, so be prepared to put your early efforts into building a great team. The Office of Technology Transfer and Innovation Park are available for consultation.

What resources are available to help new companies with financing & talent?
Multiple sources exist to help new ventures secure funding, search for talent, and identify other resources, including:

• Federal and regional grant sources (SBIR/STTR, IEDC, etc.)
• Equity financing (from angel and venture capital investors)
• Bank financing (via SBA loans, leases, lines-of-credit, etc.)
• Other sources of assistance (local/regional ED agencies, out-sourcing firms, etc.)
• The Office of Technology Transfer and Innovation Park are also available for consultation.

How do I obtain a license to ND technology?                                          Back to the top
The Office of Technology Transfer has responsibility for licensing University technologies. The best way to get a license to ND technology is to show Office of Techology Transfer (OTT) that you have a viable business plan, the right team to implement it, and the necessary resources to make it happen. The terms of the license will depend on the market applications you want to pursue, the size of those markets, your business model, your ability to effectively execute your business model, whether you want exclusive rights or non-exclusive rights, and a number of other factors.

Do I have to leave ND to start a new company?
It depends on the role you want to play in the new company. If you plan to be the president or chief executive officer, you may find it difficult to fulfill your faculty responsibilities, avoid conflict of interest or conflict of commitment, and spend the time necessary to build your company. However, if you take a role that is less involved in the day-to-day management of the company, such as chief technical officer, you may very well be able to maintain both positions (see discussion of conflict of interest on how to disclose and manage both roles).

What is the difference between conflict of interest and conflict of commitment?
According to the Notre Dame Policy on Conflict of Interest, “A Conflict of Interest arises in a situation where financial or other personal or professional considerations compromise an individual’s objectivity, professional judgment, professional integrity, and/or ability to perform his or her responsibilities to the University.”
A Conflict of Commitment can be said to exist when a member of the university community has a relationship that requires a commitment of time or effort to non-university activities such that an individual, either implicitly or directly, cannot meet the usual obligations to the university. For Faculty, obligations to the university are not discharged solely by meeting classes but require availability to students outside the classroom, participation in various committees, supervision of graduate and postdoctoral students, and progress in research programs. Any relationship with an outside organization that requires frequent and/or prolonged absence from the University presents a Conflict of Commitment.

What are Notre Dame’s rules on each? Where can I find the policies?
The Notre Dame Policy on Conflict of Interest states:

An actual  Conflict of Interest arises in a situation where financial or other personal or professional considerations compromise an individual’s objectivity, professional judgment, professional integrity, and/or ability to perform his or her responsibilities to the University. In addition to situations that clearly give rise to an actual Conflict of Interest, individuals are cautioned also to consider gray areas that might create the perception of or the potential for a Conflict of Interest. Perceived or potential Conflicts of Interest can be said to exist in situations where an individual member of the University community ( Member ), a member of the individual’s family ( Family ), or a close personal relation ( Close Relation ) has financial interest s, personal relationships, or professional associations with an individual, individuals, or outside organization, such that his or her activities within the University could appear to be biased against the University by that interest or relationship and in favor of the financial or non-financial benefit of the Member, the Member’s Family, or the Member’s Close Relation.

All Members of the Notre Dame community are committed to identifying and avoiding situations and activities that constitute a Conflict of Interest in the execution of their duties for the University. Furthermore, activities, situations, and relationships that might create the perception of or potential for a Conflict of Interest must be identified and managed appropriately. In every instance, the University reserves the right to make a determination in light of its best interest.

On no less than an annual basis, all Members, whether they are engaged in activities that might create the perception of or potential for a Conflict of Interest or not, are required to submit a Conflict of Interest Disclosure Survey to their respective Reviewer. (See Appendix: Disclosure Reviewer Matrix)

Members are further charged with the responsibility of accurate and prompt disclosure to their respective Reviewer within 15 calendar days of: (1) a change in status of an existing actual, perceived, or potential Conflict of Interest; (2) the identification of a new actual, perceived, or potential Conflict of Interest.”

The University Policy on Conflict of Commitment is currently being developed. Please check back for future updates. If there is an immediate need for guidance, please contact Mia Reini in the Office of the General Counsel.
The Faculty Handbook contains the Policy on Faculty Participation in Outside Activities.

I’ve heard that full disclosure resolves most conflicts of interest. Is that true? If so, who do I tell? If not, what do I need to do to resolve the conflict?
Full disclosure is only part of the management process outlined in the University Conflict of Interest Policy.  In most instances formal disclosure is made to your department head (for staff), or the Dean (for faculty). If an actual, potential, or perceived Conflict of Interest is determined to exist, a Management Plan may need to be developed and implemented in order to effectively manage the Conflict.

A colleague in my department said I need to submit an Outside Activities form to do any work outside the University. Is that true? Where can I get one and who has to sign off on it?
The Faculty Handbook contains a Policy on Faculty Participation in Outside Activities which states:

A faculty member desiring to engage in outside activities should receive approval from the dean of the college before any agreement to perform such work, if of a recurring nature. Permission should be requested via the form, Memorandum for Proposed Outside Activities, submitted to the dean through the department chairperson. Permission for such outside work is automatically considered to be terminated at the end of each University contract period. Thus, a professor on an academic year appointment should request renewal each September 1 for any continuing arrangement. Faculty members on summer appointment should comply with the above policy during the period of the summer contract. Approval for individual, nonrecurring endeavors is to be obtained from the department chairperson.

I want to help commercialize my technology. What do I need to be concerned about if I am the founder of the company that commercializes my technology, the company asks me to consult for them, or the company wants to make me a shareholder in return for help with technical matters?
Inventor participation is welcomed, encouraged, and in most cases vital for the successful commercialization of emerging technologies. In all three cases it is important that you are familiar and in compliance with the University Conflict of Interest Policy and the Faculty Handbook Policy on Oustide Activities.

Glossary Back to the top
The following are definitions you will encounter in the process of commercializing technology and/or starting a business.

Accredited Investor
A legal term as defined by the SEC under CFR 230 Sec 501 Regulation D, An Accredited Investor shall mean any person who comes within any of the following categories, or who the issuer reasonably believes comes within any of the following categories, at the time of the sale of the securities to that person:

1. Any bank as defined in section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; any insurance company as defined in section 2(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;
2. Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;
3. Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;
4. Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;
5. Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000;
6. Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;
7. Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in §230.506(b)(2)(ii); and
8. Any entity in which all of the equity owners are accredited investors.

Angel Investor
Angel investors are affluent or high net worth individuals who are not connected with venture capitalists or investment firms but who are interested in getting involved in small business through investments, partial ownership, and sometimes consulting assistance. Angel investors are typically seasoned, successful entrepreneurs who have retired or are looking for other opportunities to keep busy and invest their money.

Debt Financing
Instead of selling shares of stock to investors (equity financing), a company can raise money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise that the principal and interest on the debt will be repaid.

Equity Financing
Instead of borrowing money to start or expand a company (Debt Financing), Principals can raise money to start or expand the company by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation.

Seed Funding
The first round of capital for a start-up business. Seed money is usually obtained via a loan, the sale of stock, or a convertible note. Seed money provides startup companies with the early capital required for their initial development and growth. Angel investors and early-stage venture capital funds often provide seed money.

Series A (B & C) Round
The first round of stock offered during the seed or early stage round by a start-up company to a venture investor or fund. This stock is often convertible into common stock in such cases as an IPO or the sale of the company. Later rounds of preferred stock in a private company are called Series B, Series C, and so on. Typically, Series A rounds are critical in the funding of new companies. The Series A round typically ranges from $2 million to $10 million and is intended to capitalize a company as it develops its products, performs initial marketing, branding, hires its initial employees, and otherwise undertakes early stage business operations.

Venture Capital/Venture Capitalist/Venture Capital Fund
Venture capital is money used to support new or unusual commercial undertakings; equity, risk, or speculative capital. This funding is provided to new or existing firms that exhibit above-average growth rates, a significant potential for market expansion, and the need for additional financing for business maintenance or expansion.
Venture Capital is a type of private equity capital typically provided for early-stage, high-potential growth companies in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company. Venture capital investments are generally made as cash in exchange for shares of the company’s stock. It is typical for venture capital investors to identify and back companies in high technology industries. Venture capital typically comes from institutional investors and high net worth individuals and is pooled together by dedicated investment firms.
A venture capitalist (also known as a VC) is a person or investment firm that makes venture investments, and these venture capitalists are expected to bring managerial and technical expertise as well as capital to their investments.
A venture capital fund refers to a pooled investment vehicle (often an LLP or LLC) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans.

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