Venture Capital–University Interface : Best Practices to Make Maximum Impact

As hotbeds for techno­logical innovation, university research labs create groundbreaking innovations that have been at the heart of many successful entrepreneurial ventures. But powerful ideas do not neces­sarily beget successful companies; great ideas must be identified, acquired, and developed into successful businesses using a unique blend of skills. Venture capital funds exist in part to perform this valuable - and lucrative - role in the economy. But finding the next big idea is not as straightforward as discover­ing an inventor at a lab bench. A range of practical, personal, and legal hurdles must be cleared before an idea can begin to transform into a start-up company. With these common hurdles in mind, we conducted ninety-four in-depth interviews with geographically and commercially diverse venture capitalists to better understand the relationship between the academic and venture capital communities: what motivates the various stakeholders, which are the most pressing problems facing university - venture relations, and what can be done to improve the process for everyone involved. Although many factors play into start-up success, five main focus areas emerged for universities looking to improve the university-investor interface: under­standing investor motivations, supporting entrepreneurs, streamlining bureaucracy, improving access and visibility, and foster­ing a culture of innovation on campus