Technology transfer is a critical bridge between groundbreaking academic research and real-world medtech solutions. Yet, ensuring a smooth transition from lab to market comes with its own set of challenges. At LSI Europe ’24, a panel of seasoned investors and industry leaders gathered to discuss the key factors that drive successful technology transfer while avoiding common pitfalls.

“Sometimes those technologies need to be looked at from the needs perspective. Why would the end customer be willing to adopt it; why would a physician want to change their current practice and standard of care?” said Beatriz Volckaert Almansa, Investment Director at Philips Ventures. Her insight underlines a crucial consideration for investors and entrepreneurs alike: technology alone is not enough; it must align with real-world needs.

From the importance of identifying market demand early to structuring strong teams and strategic partnerships, the discussion provided a wealth of actionable insights for medtech innovators looking to navigate the complexities of technology transfer.

Understanding the Foundations of Technology Transfer

Gina Melchner, Venture Partner at NLC Health Ventures, emphasized that the first question in evaluating a potential spin-out is, “Is there a need?” She explained, “A lot of academic tech is based on tech push—brilliant technology that isn’t always aligned with a market problem.” This gap between innovation and market demand is a frequent stumbling block for early-stage ventures.

Beyond market fit, investors also focus on the strength of the founding team. “Successful companies have a well-balanced team with domain expertise and strong commercial leadership,” Volckaert Almansa noted. Many academic founders excel in research but may lack the commercial acumen needed to build a scalable business.

This sentiment was echoed by Tatiana Lobanov-Rostovsky, Health Tech Associate at Oxford Science Enterprises, who highlighted the importance of early-stage alignment. “One of the ways we prevent great ideas from getting stuck in academia is by providing early signposting to academics. We help them craft their vision and story into something that could be a company one day.”

Key Challenges in Technology Transfer

One of the recurring themes of the discussion was the governance structure of spin-outs. Pablo Prieto, Managing Director at CG Health Ventures, shared cautionary tales of universities retaining excessive control. “I’ve seen nightmare cases where academic institutions had veto power over strategic partnerships and investor involvement. This kind of governance makes investors nervous.”

Lobanov-Rostovsky added that some universities struggle with the pace required for startups. “If it takes three months to answer an email, then it doesn’t make sense to take a shareholder or even a board position,” she said, emphasizing that universities need to adapt to the realities of the commercial world.

On the investment side, Prieto stressed that early-stage investors must help startups set clear milestones. “You need a plan, and you need to demonstrate you’re hitting those milestones within the time and path. While this sounds obvious to someone coming from corporates and other walks of life, academics sometimes have a bit more flexibility regarding time and financing.”

Building Strong Teams and Strategic Partnerships

One of the most significant determinants of success in technology transfer is team composition. Gina Melchner pointed out that academic founders must acknowledge their knowledge gaps and actively seek experienced commercial leaders. “The best founders are those who recognize what they don’t know and specifically surround themselves with people with expertise to compensate for that.”

The panel also discussed the growing role of corporate partnerships in supporting early-stage medtech spin-outs. “Engaging early with strategics provides crucial market insights,” said Volckaert Almansa. “Startups benefit from feedback on how their solution would be perceived by customers, hospitals, and physicians.”

An emerging trend in the US and Israel is services-for-equity models, where hospitals become stakeholders in medtech startups. Prieto explained, “Hospitals commit to using a startup’s technology, providing an early validation pathway while reducing the need for immediate clinical trials.”

IP Strategy and Investment Considerations

IP strategy emerged as another critical success factor. Prieto advised startups to focus on building a strong patent portfolio early. “There’s significant evidence that companies with robust IP portfolios have higher valuations. If you’re coming out of academia with just one patent, that’s a red flag.”

Volckaert Almansa agreed, emphasizing the need for alignment between tech transfer offices and investors. “If a university takes 25% of a spin-out’s equity, that’s going to make me a bit wary. It deters early-stage investors and makes the company less attractive for future funding rounds.”

The panelists also noted that some tech transfer offices still struggle with commercialization-friendly policies. “Some offices want lump-sum payments upfront for licensing,” said Melchner, “but that can cripple a fragile startup before it even gets off the ground.”

Technology Transfer: Aligning Innovation with Market Needs

In a final round of takeaways, panelists were asked what one factor inventors must get right to transition successfully from research to commercialization.

• Lobanov-Rostovsky: “Go-to-market and commercial strategy.”
• Melchner: “Understanding the full opportunity—clinical impact and financial viability.”
• Volckaert Almansa: “Solving a real need and building a sustainable business model.”
• Prieto: “IP. A strong patent portfolio increases valuation and defensibility.”

As medtech continues to evolve, the ability to align breakthrough technology with real-world applications, build strong teams, and form strategic partnerships will be essential for successful technology transfer. The panelists’ insights underscore that innovation alone is not enough—execution, adaptability, and market fit are just as critical.

With the right approach, technology transfer can be a powerful engine for advancing healthcare innovation, ensuring that cutting-edge research reaches the patients and providers who need it most.