A key step in this process is fundraising and, more broadly, financing the startup. This step is often unavoidable ( but not always, fortunately ) and depends on the time required to access the market and the corresponding investments.

Moving from academic research to starting a business is not a straightforward process.

Despite this, at TKM we believe that transforming research into a start-up is above all a unique adventure, both personally and entrepreneurially. And we want to share our experience on this subject, as TKM itself emerged in 2003 from a joint laboratory of the University of Grenoble Alpes and INRA.

So, still interested in entrepreneurship?

Here are some tips and benchmarks to help you succeed in your first fundraising round.

FROM RESEARCH TO ENTREPRENEURSHIP 

The rules governing the world of research and the world of business are not the same. A scientifically excellent technology may never find a market or attract investors. Both have their own logic, and the success of your entrepreneurial project will depend on your ability to move seamlessly between the two.

To develop and launch a minimum viable product on the market as quickly as possible, you will need to learn to relinquish a certain form of academic perfection and seek market confrontation as soon as possible.

At the risk of oversimplifying, research aims to find solutions – and generate knowledge – to a given problem, whereas starting a business aims to identify the problem for which you already hold the solution…

DEVELOP A SOLID AND CONVINCING BUSINESS PLAN

For a researcher looking to launch a business, developing a business plan is a crucial step. This document reflects the vision, ambitions, and strategy of the venture . It must be compelling enough to attract investors and persuade them of the viability and growth potential of your startup.

FINDING INITIAL FUNDING

Starting any business requires initial investment. This is even more true in the innovation sector, as the investments required before generating the first euro of revenue can be very high.

Either you are very rich and you will be able to make a lot of mistakes…

Either you're not, and then your project will be a race against time: meet your market, convince your first customers and generate positive cash flow … Before the little pink piggy bank containing all your savings is completely emptied!

Most often, you will therefore need to convince investors. And to do this, you will need to create a business plan.

This document will summarize:

• Your vision of the market
• Your value proposition
• The need that you will (actually) satisfy
• Your competitors (direct and indirect)
• The barriers to entry that you have at your disposal (industrial property, for example)
• Your market access strategy (segmentation)
• Your revenue : how will you create and then capture the value you generate?
• And finally, detailed financial forecasts.

The most frequently cited weaknesses by professional investors regarding technology start-ups concern the identification of the right market, the precise knowledge of the competition in all its forms and the valuation of intangible assets , such as IP (Industrial Property).

 IDENTIFY THE RIGHT MARKET SEGMENT

One of the common mistakes made by researchers-entrepreneurs is neglecting the importance of a thorough market analysis. A solid market study is key to building credibility with investors. It must identify customer needs, market trends, opportunities and threats, and, as we will see shortly, competitor positioning.

Before you begin, the most important thing is to identify all the problems that your technological offering can solve . These represent markets, and more specifically market segments, that you could choose to target.

For each segment, you will need to understand the real need you are going to satisfy, understand the motivations and the obstacles by testing the reaction of your prospects.

Indeed, it is based on the criticality of the need you are going to address that you will be able to define your future economic model and set your prices, then choose your first target markets.

These can turn out to be very different from what you initially imagined. Hence the importance of a robust working method.

• Then all that's left is to identify your first customers… Easy, right? To learn more – Entrepreneur-researcher: launch your start-up by immediately identifying the right market and your first customers

 DETECT AND KNOW ALL YOUR COMPETITORS

Another common pitfall for researchers is a lack of knowledge about market players, and especially competitors—all competitors…

It is not uncommon that to the question, "Who are your competitors?", the answer is "I don't have any!".

For an investor, the absence of competitors can be interpreted as the absence of a market . Therefore, to have any hope of securing funding, you must also learn to map your competition and position your offering precisely in response to these competing approaches.

Competition is everywhere . Your competitors aren't limited to companies addressing the same need with the same technological approach as you. Therefore, you'll also need to adopt a robust and comprehensive competitive analysis methodology.

 PROVIDE PROOF OF THE STRENGTH OF YOUR INDUSTRIAL PROPERTY

Being first or best in a market is good. Maintaining that lead over the long term is better. But for how long can you sustain that competitive advantage?

Technology companies have a major advantage in this regard when it is properly managed: industrial property .

Demonstrating a strong IP portfolio in your business plan will help convince investors to back you . This provides an additional opportunity to develop a profitable business model and achieve strong growth before being copied, even by large corporations whose market share you will be nibbling away at.

NB Finally, this also means that even at a very "early stage", your start-up will need to put in place serious technological and competitive intelligence tools to constantly monitor your technological lead and the responses of your competitors.

• To learn more: Scientific and technical monitoring: definition and main principles

 HAVE A CONVINCING PITCH

You know the proverb: "What is well conceived is clearly expressed!"

If your application has passed the initial screening, the pitch is your next challenge! This concise and impactful presentation allows for no improvisation. It's the ultimate tool for capturing investors' attention and convincing them to invest in your startup—which, remember, means taking a risk alongside you.

Here are some key points to remember based on experience:

• A clear and unique value proposition. You are not providing a technology…but you are proposing to solve a clear, obvious and repeatable need for well-identified future customers.
• Your solution clearly stands out from the competition with obvious and objective advantages that you will provide to your future clients.
• You benefit from strong barriers to entry for your competitors.
• Your business model is profitable and offers significant growth prospects, particularly through rebound markets that have already been identified.

OPTIMIZE FUNDRAISING WITH IZINOV

Funding opportunities are varied and relatively plentiful. However, competition is fierce, and time is often limited. This is why having the right analytical tools can be a decisive advantage for your project.

Izinov is designed to help entrepreneurs strengthen their fundraising case by providing strategic insights and accurate analysis of your markets, competitors and the positioning of your intellectual property [1] .

An effective and inexpensive solution

Izinov is a comprehensive range of services that include market analysis and industrial property mapping, with results available in 10 days after only 2 hours of your time have been allocated to framing the subject of the analysis.

Once your business is up and running smoothly, Izinov also offers monitoring services . Depending on your preferred frequency— monthly or quarterly —you'll receive a comprehensive monitoring report covering your markets, customers, competitors, and technological developments.

Originally designed for SMEs and start-ups, Izinov offers service prices starting from 1300 euros cost price, after deduction of available aid.

Since its creation in 2017, Izinov has attracted more than 250 clients: start-ups, innovative SMEs and large private and public groups.

In addition to the quality and personalization of the service, everyone appreciated the speed of implementation of the service, the efficiency of the scoping (2 hours of your time) and the short delivery time of the deliverable (8 days).

A concrete example

A startup developing a range of connected medical devices is preparing its fundraising proposal. Thanks to Izinov , a market and competitive landscape analysis was conducted in less than 10 days, identifying several application markets and customers following the analysis of 2,500 relevant , publications , and collaborative projects worldwide. A concise map of its technological and competitive environment was thus quickly drawn up, allowing for a clear characterization of the startup's promising positioning.

Patent mapping (also available in the Izinov ) also helped to illustrate the key position of the patents filed by the startup and to provide evidence of the barriers to entry it could erect. A few months later, it finalized its first funding round of €2 million .

Are you looking to raise your first round of funding?

Do you need to delve deeper into your market analysis?

To comprehensively map your competitors?

To demonstrate the strategic positioning of your patents?

Or perhaps to implement effective and professional strategic monitoring?

[1] Patent Overview & Mapping – Products from the IZINOV range of services