Swift Startup Option or License

Is your startup Rock Chalk & ready to go? Then our Swift Startup Option or Swift Startup License might be a fit.

To help promote innovation and foster entrepreneurship, the KU Center for Technology Commercialization offers two simplified, ready-to-use agreements that can be a fit for many KU startup companies developing KU-patented intellectual property. In recognition of our interest in a low-friction negotiation with our startups, we call these approaches the Swift Startup Option and the Swift Startup License, or Swift for short. 

The Swift Startup Option offers a streamlined, ready-to-use option agreement that is a fit for many early startups while they are still developing their business and commercialization strategies. The Swift Startup Option enables a KU startup to obtain an exclusive, limited time period to evaluate the KU technology and intellectual property of interest under a standard set of terms and at a manageable cost.

The Swift Startup License offers a ready-to-use license agreement for startups ready to hit the ground running, developing and commercializing KU technology and intellectual property. The Swift Startup License is structured to strike a reasonable balance between the needs of the startup company and KU, allowing for:

  • An attractive position for prospective investors
  • A streamlined and efficient negotiation process
  • Reduced upfront legal costs

Using the Swift models enables KU startups to invest their efforts and resources in the creation of long-term value from KU intellectual property. Please keep in mind that our Swift agreements are only two of many options available to KU innovators, and both are built to serve the most common business models found when developing university intellectual property — one in which a single primary product is to be developed from the licensed patent rights. 

Swift agreements do not fit all types of business opportunities, nor intellectual property aside from patents. Prior to starting down the path, please discuss with KUCTC what other options might be available. 

Licensing FAQs


Swift Startup Option basics

  • Exclusive option to acquire an exclusive license for a defined field
  • $500 upfront option fee
  • 12-month option term (extendable for an additional 6 months upon completion of a milestone)
  • Reimbursement of ongoing patent costs during the option term, capped at a maximum of $1,500
  • View the nonnegotiable Swift Startup Option template (.pdf) 


Swift Startup License basics

  • Exclusive license with right to sublicense
  • No upfront fees
  • No repayment of past patent costs ($20,000 limit; future/ongoing patent costs paid by licensee)
  • No equity to KU
  • No annual minimum fees
  • No minimum annual royalties
  • Single, flat patent royalty rate on sales of any product(s)
  • Sliding sublicense revenue that steps down over time
  • A “success fee” payable if/when the company is acquired or goes public
  • View the nonnegotiable Swift Startup License template (.pdf)

Commercialization

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Swift qualifications + approval process

Learn more about the qualifications for the Swift Startup Option and Swift License Option and how to navigate the approval process for each.

Swift Startup Option

  • The individual requesting the Swift Startup Option must be employed at KU (as faculty or non-faculty staff) and be a founder of the company optioning the KU intellectual property.
  • The individual requesting the Swift Startup Option must be an inventor of the KU intellectual property.
  • The KU intellectual property must be the basis for forming the new company, and a clear product to be developed from the KU intellectual property must be identifiable.
  • The KU intellectual property must be solely owned by KU.
  • The startup must have identified an individual who — aside from the inventor(s) — is committed to assisting in the development of a commercialization strategy for the company. Please note: KUCTC does not directly negotiate agreements for KU intellectual property with KU employees.
  • A key milestone (or milestones) to be completed during the option period must be identified. 
  • The technology/intellectual property must have been disclosed to KUCTC, and KUCTC must have completed its formal assessment.
  • A formal request for a Swift Startup Option should be submitted to KUCTC, followed by a one-on-one consultation. This request should identify the KU invention and number; the name and contact information for the company; and the name and contact information for the individual who will assist in developing a commercialization strategy.
  • A proposed milestone (or milestones) to be completed during the option period must be identified and provided to KUCTC.
  • KUCTC will review the proposed milestone and request for approval as a team before moving forward with the Swift Startup Option.
  • The individual requesting the Swift Startup Option (and any other individuals employed by KU and affiliated with the company) should complete a conflict of interest (COI) disclosure for review. A submission and consultation with a KU COI team is required for all Swift Startup Options.
  • Please note that, except for the incorporation of a milestone(s), the Swift Startup Option is nonnegotiable.

Swift Startup License

Special attention has been given to streamline the process, reduce upfront legal costs and expedite the contract execution process by KUCTC and licensee. To qualify for a Swift Startup License, the following criteria must be met:

  1. The individual requesting the Swift Startup License must be employed at KU (as faculty or non-faculty staff) and be a founder of a startup licensing the KU intellectual property.
  2. The individual requesting the Swift Startup License must be an inventor of the KU intellectual property.
  3. The individual requesting the Swift Startup License must have attended Startup School @ KU or have demonstrated equivalent business experience/training (e.g., STARTUP Central, I-Corps, Kaufmann FastTrac, etc.).
  4. The KU intellectual property must be the basis for forming the new company, and a clear product to be developed from the KU intellectual property must be identifiable.
  5. The KU intellectual property should be solely owned by KU.
  6. The startup must have a CEO (with relevant business experience; not the PI) and an assembled team of advisors committed to the startup. Please note: KUCTC does not directly negotiate licenses to KU intellectual property with KU employees.

Present the business case (including a business plan and an investor pitch slide deck) to the Swift Committee for approval via email to Cliff Michaels. cmichaels2@ku.edu. 

The following steps need to be completed before a Swift Startup License is executed:

  1. A formal request for a Swift Startup License should be submitted to KUCTC, followed by a one-on-one consultation with a KUCTC team member.
  2. A business model canvas (.docx) must be developed by the startup and submitted to KUCTC.
  3. A business plan must be developed and submitted to KUCTC.
  4. An investor-ready pitch deck incorporating the startup’s business plan must be presented to the Swift Committee. KUCTC will coordinate this meeting.
    1. The Swift Committee will follow your presentation of your pitch with a question-and-answer session.
    2. The Swift Committee will meet and vote for approval after the meeting, and KUCTC will provide their feedback to the startup. Please note: KUCTC cannot guarantee approval by the committee.
  5. Along with seeking committee approval, the individual requesting a Swift Startup License (and any other individuals employed by KU and affiliated with the company) should complete a conflict of interest (COI) disclosure for review and approval from the respective COI committee. This process is independent of KUCTC and is the responsibility of the individual requesting the Swift Startup License. Please contact coi@ku.edu in the KU Office of Research.
  6. Please note that, except for the incorporation of market-relevant diligence milestones, the Swift Startup License is nonnegotiable.

To help you through the commercialization process, we created a sample commercialization plan guide (.docx) to utilize as you think about commercialization. Working through this plan helps you focus on the specific components of a successful commercialization initiative for any product or idea. 

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