Entrepreneur in Residence Program
The Entrepreneur in Residence Program is a commercialization initiative that aims to commercialize viable technologies by placing venture capital firms in a position to work directly with the national laboratories. This page discusses the program, its goals, and some commonly asked questions.
Challenges and Goals
Technologies developed at the labs only become fully developed, operative and prosperous after a scientist finishes his research, and after the technologies are delivered to the market. However, national labs hire scientists, not businessmen. The problem is the break in progress between the end of the scientist's research and the beginning of a business effort: the "Commercialization Valley of Death."
The Entrepreneur in Residence (EIR) Program is the first of many innovative solutions that the Commercialization Team has developed to overcome this "Valley" setback. The program partners with venture capital firms to bring entrepreneurial businessmen into the DOE's national laboratories where the EIRs work to identify the best technologies for commercialization.
For more information about the EIR program, see the Entrepreneur in Residence Program Questions and Answers Web page.
Venture Capital Firms
The EIR Program begins when venture capital firms bid upon the DOE-issued solicitation. If chosen, firms earn a "slot" of one year at a national lab, and, in conjunction with DOE, co-fund an EIR position. During the "slot," the venture capital firms identify, hire and mentor one or more entrepreneurs. If, for example, the first EIR discovers an interesting technology and leaves the lab to establish a new business around that technology, the VC firm can insert a new entrepreneur for the remainder of the term.
On February 27, 2008, three venture capital firms were chosen to work with the National Renewable Energy Laboratory, Sandia National Laboratory, and Oak Ridge National Laboratory. For more information about the companies chosen, see the DOE press release.
On November 19, 2008, DOE announced a competitive solicitation for five more venture capital firms to participate in an expansion of the program to five additional laboratories: Argonne National Laboratory, Brookhaven National Laboratory, Lawrence Berkeley National Laboratory, Lawrence Livermore National Laboratory, and Pacific Northwest National Laboratory. For more information on the solicitation, including application due date, see the DOE press release.
The Entrepreneur's Role in the Program
The entrepreneur in residence, not the sponsoring venture capital firm, signs one simple NDA that allows the entrepreneur full access to all lab-developed technologies, except those requiring a security clearance. The entrepreneur communicates with scientists and searches the lab for a commercially promising technology. He then forms a business plan, assembles a management team and raises capital. This success allows the entrepreneur in residence to spinout an energy efficient or renewable energy technology-based, fundable business.
The Equity Share License Agreement
Built off the Stanford license, this license has been pre-negotiated with venture capital general counsels, national lab general counsels and DOE general counsel. This 17-page agreement is an integral part of the EIR Program that gives the laboratory equity share of the newly founded company, royalties, or a combination of both. The agreement is perfect for small businesses and entrepreneurial ventures, leaving the percent equity share as the only point of negotiation.