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PSU Inventor’s Guide to Startups
Launching a Startup founded by PSU faculty, staff, and students.

PSU Inventor’s Guide to Startups

01. Introduction

This guide supports PSU’s mission of translating research into real-world impact by guiding inventors in launching startups. It clarifies PSU's role in technology transfer and sets guidelines for IP management, conflict of interest, and revenue sharing. Scope: This policy applies to PSU faculty, researchers, students, and any external entrepreneurs intending to commercialize PSU-based research or IP.

02. Technology Transfer Process

  • Initial Contact with TTO:

    Inventors should connect with PSU’s Technology Transfer Office (TTO) to discuss potential commercialization pathways, including startups.

  • IP Protection:

    Collaborate with TTO to secure patents or other IP protections before any public disclosure. This IP is vital for attracting investors and securing exclusive market rights.

  • Opportunity Assessment:

    TTO assists in evaluating the IP's market potential, competition, freedom to operate, and business viability. Based on these factors, TTO will determine whether a startup or licensing is the optimal commercialization pathway.

  • Licensing and Equity Negotiations:

    For IP-based startups, TTO will negotiate licensing agreements. PSU retains %40 equity in all startups.
03. Startup Formation Steps

  • Develop a Business Plan:

    Inventors work with TTO to create a business plan addressing market demand, IP strategy, funding needs, and milestones for growth and scalability.

  • Build the Team:

    Form a multidisciplinary team with expertise in technical development, business management, and fundraising.

  • Seek Funding:

    PSU TTO assists in connecting startups with potential funding sources, such as angel investors, venture capital, grants, or incubators. In some cases, the Startups may be eligible for PSU internal funding.

  • Establish a Company Structure:

    Define equity distribution among founders, team members, and PSU. Clear agreements ensure transparency and alignment on roles, responsibilities, and contributions.
04. Revenue and Equity Sharing
  • Equity Distribution Framework

    Startups formed by PSU faculty, researchers, staff, or students will follow the university’s equity framework. This ensures that both the university and the founders are rewarded appropriately for their respective contributions.

  • University Equity Share:

    • The University equity share is determined on a case-by-case basis, depending on the nature of the startup, its external funding, PSU’s IP, and Lab resources. PSU may claim a maximum of 40% equity in startups. However, PSU recognizes that each startup journey is unique; therefore, in certain cases, PSU's share may go as low as 5%, allowing founders greater flexibility and ownership. The university equity share distribution is decided based on the following factors:

    • Significant external funding or investment
    • High-value strategic partnerships with industry
    • Exceptional contributions by founders or collaborators with an impact on the Local economy or community
    • Exemplary entrepreneurial performance, such as securing key customers or achieving product-market fit
    • Demonstration of the founding team’s unique expertise is critical to the startup’s success
    • Ability of the founding team to attract top talent, key investors, or valuable strategic partners

    Additionally, if a startup is established utilizing licensed PSU intellectual property (IP), the university shall negotiate an equity position for the startup that ensures the university's equity share is not subject to double-counting, both through the licensing of its IP and through the equity distribution of the startup. The startups resulting from PSU-owned IP require a separate IP licensing agreement as per the university’s standard IP policies.


    Startups may also negotiate to repurchase PSU’s share at a market-determined valuation over time. This dynamic approach ensures fairness while aligning with the university’s strategic objectives

  • Founding Team Equity:

    • Following agreement on the university's equity share, the remaining equity is allocated to the founding team, which will be divided among faculty, students, or staff involved in the venture. The internal distribution is at the discretion of the team. If additional members (e.g., investors or advisors) join the founding team, any equity granted to them will be deducted from the founding team’s equity share.

05. Conflict of Interest and Compliance

  • Conflict of Interest Policy:

    PSU inventors must disclose any potential conflicts of interest to ensure objective decision-making, particularly if they hold positions in both PSU and the startup.

  • Compliance with PSU Policies:

    All inventors and startups must adhere to PSU’s standards for IP management, conflict of interest, and financial transparency.
06. Additional Resources and Support for Startups

  • PSU Incubation Program

    All startups are required to participate in the PSU Incubation Program for a minimum of six months at the Research and Innovation Center (RIC).
    Benefits include:
    1. Access to a dedicated co-working space with telephone, and printing facilites.
    2. Mentorship from PSU faculty, staff, and industry advisors.
    3. Capacity-building workshops on entrepreneurship, funding, and business management.
    4. Support in accessing funding sources, including grants, angel investors, and venture capital.

    Startups requiring additional support for growth and stability may request an extension of the incubation period.

  • Technology Development Project:

    The technology development program aims at accelerating impact research that results in commercialization and technology development. The technology development program provides funding to creating Hi-Tech startups and companies. The project must lead to developing proofs-of-concept and prototypes at a high technology readiness level (6 and above).

  • Partnership Development Project.

    The partnership development program aims to foster collaboration between Prince Sultan University (PSU) and industry partners. The objective is to support projects that lead to impactful solutions addressing real-world challenges through applied research. PSU will contribute up to %50 of the total project cost, allowing industry partners to benefit from university resources while contributing to shared objectives. Projects must have the potential to enhance innovation, technology transfer, and societal impact, aligning with Saudi Vision 2030. The program is designed to support projects that reach a high level of industrial readiness and may result in commercialization, patents, or implementation in the partner's operational processes.

  • External Funding Support:

    RIC provides guidance and access to:

    • Angel investors and venture capital firms.
    • Government grants and international funding programs.
    • Corporate sponsorships and innovation challenges.

  • Legal and IP Support

    • Guidance on intellectual property rights, patent applications, and licensing agreements.
    • Legal support for drafting contracts, NDAs, and equity-sharing agreements.

  • Training and Mentorship

    • Entrepreneurship boot camps and training sessions on market analysis, financial planning, and scaling businesses.
    • Access to a network of mentors, including PSU faculty and industry leaders.

  • Networking Opportunities

    • Participation in RIC-hosted innovation expos, startup showcases, and pitch events.
    • Introductions to RIC’s network of alumni entrepreneurs and investors.

  • Global Partnerships

    • RIC provides support to collaborate with international accelerators and incubators to provide global exposure to its startups.
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The Research and Initiative Center (RIC) is the administrative research structure at Prince Sultan University that provides faculty members with different research services.

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