Research Partnerships: Sponsored Research vs JDA vs License
Deep tech startups can structure university research relationships in three primary ways.
Deep tech startups can structure university research relationships in three primary ways. Sponsored Research Agreements (SRAs) — the company funds specific research at the university, typically in exchange for an option to license resulting IP. The company pays the full cost of the research (including university overhead, typically 40-60% on top of direct costs) and receives first rights to commercialise. Joint Development Agreements (JDAs) — the company and the university jointly fund and conduct research, with pre-agreed IP ownership and commercialisation terms. JDAs are more complex to negotiate than SRAs but provide the company with more control over the research direction and IP ownership. Licence Agreements — the company licenses existing university IP without funding new research. The licence terms (exclusivity, field of use, royalty rates) are negotiated with the TTO. The most common structure for pre-seed deep tech startups is an SRA with an exclusive option to license, as it minimises upfront legal costs while securing access to the research output.