Licensing to Startups

Sometimes an invention is best commercialized via the creation of an "MIT startup": a technology-based company formed to commercialize one or more related inventions made at MIT and protected by intellectual property rights (i.e. patent or copyright) owned by MIT. Inventors may participate in these startup companies in a variety of ways, and TLO Licensing Officers are available to discuss all aspects of company formation with you.

While every MIT startup follows its own unique path, these are the major steps to getting a business off the ground:


We encourage you to contact the Technology Licensing Office early in the process to discuss your invention, how to protect the intellectual property, and your thoughts about a startup company.


In a startup, a major source of value, and thus a major tool for attracting investment, is intellectual property (usually one or more patents or substantial software code). Engage with the patent attorney contracted by the TLO to get a patent application filed on your invention before you make any public disclosure or communication of it, since early disclosure may limit your ability to get a patent, particularly outside the U.S.


The Technology Licensing Office, and in particular your Technology Licensing Officer, can connect you with a wealth of resources for inventors looking for help starting a company. The MIT Entrepreneurial Ecosystem can provide MIT inventors assistance with all facets of the startup process – from writing a business plan, to meeting like-minded entrepreneurs and investors, to attracting board members, to securing funding to demonstrate an invention's commercial viability.
Entrepreneurial Ecosystem

  • Technology Licensing Office:  Manages Patent Filing and licensing of MIT technologies.
  • The Martin Trust Center for MIT Entrepreneurship:   provides the expertise, support, and connections MIT students need to become effective entrepreneurs.
  • MIT Innovation Initiative and Student Entrepreneurship Clubs
  • MIT Venture Mentoring Service:  Mentors MIT personnel on how to create and fund a startup company.
  • MIT Sandbox provides seed funding  for student-initiated entrepreneurship ideas, mentoring from within MIT and from a broad network of committed partners, and tailored educational experiences
  • Deshpande Center for Technological Innovation:  Provides advice on technology development and grants (up to $150K) for research done at MIT laboratories to develop ideas towards a product that can attract future venture or corporate funding.
  • The $100K Entrepreneurship Competition:   A series of events that culminate in the Spring Business Plan Contest.
  • Lemelson-MIT Program: The Lemelson-MIT Program offers a collection of awards focused on recognizing and supporting inventors and innovation.
  • The Engine: Provides incubator space, access to facilities and venture financing.


A formal business plan may or may not be part of this phase, but you'll need to develop an understanding of market potential, competition, funding needs, and how you plan to develop the product and attain the revenues sufficient to sustain and grow the company.


The TLO will negotiate with a representative of the company to grant a license to the startup. In some cases, a short-term option agreement may precede a license so your company can demonstrate to potential funders that it has secured the rights to negotiate for a license to the technology.


Commercializing technology is typically a capital-intensive process. You'll need to present your opportunity to people with the funds to help you make it happen: venture capitalists, angel investors and perhaps in the initial stages, friends and family. Participation in the MIT Entrepreneurial Ecosystem is one way to start the personal introduction process that can help you get the attention of angel and venture capital investors.