A key step in this process is fundraising and, more generally, financing the start-up. This step is often unavoidable ( but not always fortunately ) and depends on the time that will be necessary to access the market and the corresponding investments.

Going from an academic research activity to creating a business is not easy.

Despite this at TKM, we believe that the transformation of research work into a start-up is above all a unique adventure on a human and entrepreneurial level. And we would like to share our experience on this subject, TKM itself having emerged in 2003 from a joint laboratory of the University of Grenoble Alpes and INRA.

So still volunteers for entrepreneurship?

Here are some tips and points of reference for making your first fundraising successful.

From research to entrepreneurship 

The same rules do not govern the world of research and that of business. A scientifically excellent technology may never meet its market and attract investors. Both have their own logic, and the success of your entrepreneurial project will depend on your ability to move from one to the other.

To develop and launch a minimally viable product to market as quickly as possible, you will need to learn to forgo some form of academic perfection and seek out market confrontation as soon as possible.

At the risk of falling into caricature, research aims to find solutions – and generate knowledge – on a problem, while business creation aims to identify the problem for which you have the solution…

Develop a solid and convincing business plan

For a researcher wishing to start a business, designing a business plan is a crucial step. This document reflects the vision, ambitions and strategy of the company . It should be compelling enough to grab the attention of investors and persuade them of the viability and growth potential of your startup.

Find the first financing

Starting any business requires an initial investment. In innovation even more, because the investments required before achieving your first euro of turnover can be very high.

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

Either you are not, and then your project will come down to a race against time: meet your market, convince your first customers and generate positive cash flow ... Before the little pink pig which contains all your savings disappears. is totally emptied!

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

This document will summarize:

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

The weak points most frequently cited by professional investors regarding technological start-ups concern the identification of the right market, 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 researcher-entrepreneurs is to neglect the importance of a comprehensive market analysis. A solid market study is a key element in making the project credible in the eyes of investors. It must identify customer needs, market trends, opportunities and threats, as well as as will be seen right after the positioning of competitors.

Before you get started, the most important thing is to identify all the problems that your technology offering can solve . These are all markets and more precisely market segments that you could choose to address.

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

It is in fact depending on the criticality of the need that you are going to address that you will be able to define your future economic model and set your prices, then choose your first targeted markets.

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

• It will then remain to identify your first customers... Easy, isn't it? To find out more – Entrepreneur-researcher: launch your start-up by immediately identifying the right market and your first customers

Detect and know all your competitors

The other common trap for researchers is the lack of knowledge of market players and in particular of competitors, all competitors...

It is not uncommon for 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 an absence of a market . To hope to obtain financing, you must also learn to map your competition and position your offer precisely in response to these competing approaches.

Competition is everywhere . Your competitors are not limited to companies that will address the same need with the same technological approach as you. You will therefore also need to adopt a solid and exhaustive competitive analysis methodology.

Provide proof of the strength of your industrial property

Being the first or the best in a market is good. Maintaining this lead over the long term is better. But how long will you be able to maintain this competitive advantage?

Technology companies have a major advantage for this when it is well managed: industrial property .

When writing your business plan, providing proof that you have a strong IP portfolio will help convince your investors to follow you . Because it is an additional chance to achieve a profitable economic model and strong growth before being copied, including by large groups from which you will come to eat up market share.

NB Finally, this also means that even at a very “early stage” stage, your start-up will have to put in place serious technological and competitive monitoring tools to constantly monitor your technological advance and the responses of your competitors.

• To find out more: Scientific and technical monitoring: definition and main principles

Have a convincing pitch

You know the proverb: “What is well conceived is clearly stated”!

If your file has passed the first screening, the pitch is your next test! This concise and impactful presentation allows no improvisation. It is the ultimate tool for capturing the attention of investors and convincing them to subscribe to the capital of your start-up, that is to say, don't forget, to take a risk alongside you.

Here are some key points to remember from experience:

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

Optimize fundraising with Izinov

Financing possibilities are very varied and relatively abundant. But the competition is tough and you often have little time. This is why having the right analysis tools can prove to be a decisive asset for your project.

Izinov is designed to help entrepreneurs consolidate their fundraising file by providing strategic information and precise analyzes on your markets, your competitors and the positioning of your industrial property [1] .

An effective and inexpensive solution

Izinov is a complete range of services which include the analysis of your markets and the mapping of industrial property, for results available in 10 days having only mobilized 2 hours of your time to frame the subject of the analysis .

Once your business is launched on the right track, Izinov also offers monitoring services by subscription. Depending on the pace of your choice, every month or every quarter , you have a complete monitoring review of your markets, your customers, your competitors and the evolution of technologies.

Originally designed for SMEs and start-ups, Izinov offers service prices starting from 1,300 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 framing (2 hours of your time) and the short deadline for sending the deliverable (8 days).

A concrete example

A start-up developing a range of connected medical devices is preparing its fundraising application. Thanks to Izinov , in less than 10 days a market & competition overview was carried out, identifying several application markets and customers following the analysis of relevant patents , publications and collaborative projects on a global scale. . A synthetic map of its technological and competitive environment was thus able to be drawn up very quickly, making it possible to characterize the promising positioning of the start-up.

The Patent Mapping (also available in the Izinov ) also made it possible to illustrate the key position of the patents filed by the start-up and to provide evidence as to the barriers to entry that it could erect . A few months later, it finalized an initial fundraising of 2 million euros .

Are you looking to raise your first fund?

Do you need to deepen your market analysis?

To comprehensively map your competitors?

To demonstrate the strategic positioning of your patents?

To implement effective and professional strategic monitoring?

[1] Patent Panorama & Mapping – Products from the IZINOV service range