Standardized Terms
Faculty-First Design
Two Flexible Pathways
Based on Imperial College’s Founders Choice
ABOUT THE PROGRAM
A Faculty-First Pathway to Lauch
Founders Elect is UT San Antonio’s flagship faculty startup formation program — a structured, transparent pathway from invention disclosure to operating company. Modeled on Imperial College London’s internationally recognized Founders Choice framework, the program is designed for the unified research and health sciences university that UTSA and UT Health San Antonio have become.
The program gives faculty inventors clear, standardized, and well-supported options so that the journey from discovery to company is predictable, equitable, and efficient — regardless of where a founder is on their entrepreneurial journey.
PROGRAM STRUCTURE
Two Pathways. One Program.
Founders Elect offers two clearly defined routes. Choose based on how much control you want to retain and how much direct support you need from OISP’s commercialization team.
1. Founder Path
High Equity ◊ Foundational Support
Designed for researchers who are ready to take the wheel. You retain more control and equity — in exchange for taking greater responsibility for your spinout’s development.
✓ Standard option & license terms
✓ Company formation support
✓ IP maintenance on foundational tech
✓ Investor showcase events
✓ Incubator space introductions
✓ Market assessment reports
2. Partnership Path
Shared Equity ◊ Enhanced Support
Designed for researchers who are ready to take the wheel. You retain more control and equity — in exchange for taking greater responsibility for your spinout’s development.
✓ Standard option & license terms
✓ Company formation support
✓ IP maintenance on foundational tech
✓ Investor showcase events
✓ Incubator space introductions
✓ Market assessment reports
Standard terms by design. Founders Elect uses standardized option and technology license terms — eliminating the need for founders to appoint an independent negotiator and enabling a streamlined timeline from disclosure to executed agreement.
QUICK LINKS
- Download Framework (PDF)
- Equity Terms – Non-Dilute (Appendix A)
- Equity Terms – Dilute (Appendix B)
- Option Agreement Template
- Invention Disclosure Form
CONTACT OISP
Questions about Founders Elect? Reach out to our technology commercialization team.
Office of Innovation & Strategic Partnerships
UT San Antonio
INSTITUTIONAL BACKING
Founders Elect operates under an Executive Mandate from the Office of the President, providing OISP with the institutional authority, resources, and protection to deliver this program.
Read the Mandate ›
BASED ON IMPERIAL COLLEGE
Founders Elect is modeled on Founders Choice® from Imperial College London — one of the world’s leading academic commercialization frameworks.
UNIVERSITY EQUITY
Transparent Equity Terms
The University will receive founding equity in spinout companies in exchange for its foundational IP, innovation ecosystem, research facilities, and project funding. Terms are fixed and published — no negotiation required.
| Company Name | Founder Path | Patnership Path |
|---|---|---|
| Pharmaceuticals Therapeutic development | 5%+ Non-dilute to $15M cumulative investment | 5%+ Non-dilute to $20M cumulative investment |
| Non-Pharmaceuticals Software, Devices, Physical Sciences | Election A: 5%+ Non-dilute to $5M | Election A: 5%+ Non-dilute to $10M |
| Non-Pharmaceuticals Software, Devices, Physical Sciences | Election B: 10% Dilutable | Election B: 15% Dilutable |
+ Non-dilute equity is maintained through the specified cumulative investment threshold, after which ordinary dilution applies. Full terms in the Framework document.
FINANCIAL TERMS
Licensing & Fee Structure
FOUNDER PATH
Execution Fee: $5,000 (due within 30 days of license effective date)
Milestone Fee: $20,000 (due upon cumulative raise of $500,000)
$500 credit available for completing an eligible OISP workshop.
PARTNERSHIP PATH
$50,000 one-time payment due on the second anniversary of the license effective date.
Both paths use the same royalty rate schedule, applied on net sales of licensed patents. No royalty is due in the first year of sales (up to $1M cumulative net sales).
RATE SCHEDULE
- 0.5% — Low margin businesses
- 1.0% — Medium margin businesses
- 2.0% — High margin businesses
MARGIN EXAMPLES
- Low: Commodity chemicals, mass manufacture (<10% net profit)
- High: Medtech, biotech, pharma, SaaS (>15% net profit)
FOUNDER PATH
- 10% (pharmaceuticals)
- 5% (non-pharmaceuticals)
Of any non-royalty consideration received.
PARTNERSHIP PATH
- 15% (pharmaceuticals, may be tiered)
- 10% (non-pharmaceuticals)
Of any non-royalty consideration received.
BOTH PATHS – SAME TERMS
- Ongoing expenses: payable within 30 days of invoice
- Past expenses: 5 equal annual installments; first payment on 1st anniversary of license
- Patent fee deferral available during first year of Option Period (domestic filings only)
FEE DERRAL NOTE
Foreign (non-U.S.) patent expenses are not eligible for deferral. PCT national/regional stage fees must be pre-paid no later than 60 days before the filing deadline.
HOW IT WORKS
From Disclosure to Company
The Founders Elect process is designed to be fast and friction-free, with legal template documents available at each stage.
1. Submit an Invention Disclosure
- File a disclosure with OISP. Your assigned program manager will conduct an initial review and reach out within 10 business days.
2. Market & Commercialization Assessment
- OISP conducts an up-front assessment of market opportunity and competitive landscape. You receive a research report to inform your path selection.
3. Select Your Path
- Choose Founder Path (high equity, foundational support) or Partnership Path (shared equity, enhanced OISP engagement). Path-specific terms apply from this point.
4. Execute Option Agreement
- Sign the standard two-year option agreement (with the License Agreement attached as an exhibit). Company formation support begins.
5. Incorporate & Operate
- OISP supports company incorporation using template documents, IP maintenance on your foundational technology, and introductions to incubator space and the investor community.
6. Execute License & Launch
- Execute the definitive license agreement. University equity is issued. You are now an operating startup with OISP as an ongoing institutional partner.
Ready to Build Your Company?
Submit an invention disclosure today. Our team will assess your technology’s commercial potential and help you choose the right path forward.