Venture Capital-Funded Research

Venture capital firms can fund research at UC Berkeley that may lead to intellectual property (IP), which a VC-designated startup company (a NewCo) can license. There are several approaches for structuring this kind of collaboration.

VC-Sponsored Research

A VC can establish a sponsored research agreement with UC Berkeley that reserves IP rights for potential VC NewCos. While the VC itself does not license or commercialize IP, its NewCos have standing to do so.

How it Works

  1. Set up the agreement. UC Berkeley and the VC negotiate an agreement to fund a specific research project—or a master agreement covering multiple projects and labs.
  2. Reserve IP rights. The agreement specifies that a NewCo—either existing or to be formed—may  license IP resulting from the funded research.
  3. Select projects. The VC reviews research proposals from UC Berkeley principal investigators (PIs) and decides which to fund.
  4. Conduct the research. The funded UC Berkeley labs carry out the work under the PI’s direction. The VC may advise the lab as appropriate.
  5. Disclose and manage IP. PIs disclose any resulting IP to UC Berkeley’s Office of Technology Licensing (OTL). OTL notifies the VC of new disclosures.
  6. License to a NewCo. The VC identifies a NewCo to negotiate a commercial license under the reserved rights. The NewCo then develops products or services based on the IP.

Note: The VC, PI, or researchers in the PI’s lab may also enter separate agreements related to the NewCo (e.g., consulting, advisory board participation, or management roles). All such activities must comply with UC Berkeley’s Outside Activities policy. 

Examples: 

VC-Sponsored Institute

For VCs interested in advancing an entire field of research, the agreement can establish or fund a UC Berkeley institute. 

A joint VC-UC Berkeley steering committee may:

  • issue calls for research proposals
  • allocate funding
  • manage projects and deliverables
  • deliver results
  • promote the research theme
  • support discovery grants and fellowships 

Example: Center for CRISPR Target Discovery

VC Gift-Funded Research

If a VC wishes to support UC Berkeley research without requiring IP rights, it may instead make a philanthropic gift to fund a project. 

To explore this option, contact Foundation Relations and Corporate Philanthropy (UDAR).

To discuss VC-funded sponsored research opportunities, contact:

Eric Giegerich
Intellectual Property and Industry Research Alliances Office 
egiegerich@berkeley.edu

To discuss equity and participation rights, contact:

Omar Qarshi
Venture Capital Services
omar.qarshi@berkeley.edu

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FAQs for Venture Capital-sponsored Research

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What are the different functions performed by the UC Berkeley Industry Alliances Office and the Office of Technology Licensing in a VC-funded research program?


Both the Industry Alliances Office (IAO) and the Office of Technology Licensing (OTL) operate under the umbrella of the UC Berkeley Office of Intellectual Property & Industry Research Alliances (IPIRA).

IAO: Handles the front-end contracting. They negotiate the sponsored research agreement, budgets, and project scopes with the venture capital firm. OTL: Handles the downstream intellectual property licensing. They intake invention disclosures, open source software, and results from the labs, manage patent/copyright protection, and negotiate the...

How does the VC-sponsored research program work?

Typically, a venture capital firm identifies an area of scientific or technical interest aligned with UC Berkeley research capabilities. The Industry Alliances Office then helps facilitate introductions, evaluate collaboration structures, and coordinate sponsored research agreements where appropriate. Projects may range from basic research to targeted technical development and translational research efforts such as:

Artificial intelligence and machine learning Biotechnology and life sciences Climate and sustainability technologies Advanced materials Energy systems Semiconductor and...

Is VC-sponsored research restricted or unrestricted research funding?

At the University of California, venture capital (VC)- and Industry-sponsored research are categorized as restricted funding because they represent transactional, bilateral arrangements driven by profit-motivated commercial sponsors. Unlike unrestricted charitable donations or core institutional funds, VC- and industry-sponsored contracts establish a legally binding scope of work and demand direct return benefits, explicitly restricting fund expenditures to an agreed-upon project budget, enforcing strict technical milestones, and attaching critical legal contingencies regarding the...

What overhead rate applies to VC-sponsored research?

VC-sponsored research bears standard university overhead (see https://ipira.berkeley.edu/industry/indirect-costs.) The University of California and UC Berkeley do not waive indirect costs (overhead) on restricted sponsored research for either industry or venture capital (VC) sponsors. Both corporate entities and venture capital firms are legally and operationally classified as for-profit, commercial entities. Per UC systemwide policy, they must pay the full applicable institutional facilities and...

Does the venture capital firm own intellectual property generated from VC-sponsored research?

No. Per University of California policy, UC Berkeley retains ownership of all intellectual property (IP) generated by its employees using university resources or funding. However, the VC-sponsored research agreement provides a structured, contractually-secured pathway for the VC's designated NewCo to secure commercial license rights to IP resulting from the sponsored research agreement.

What kind of licensing rights does the NewCo get in VC-sponsored research?

While the VC firm itself is not expected to in-license and commercialize the intellectual property (IP), the sponsored research agreement (SRA) ensures that the VC’s designated startup has the standing to negotiate a commercial license to IP resulting from the SRA. UC Berkeley’s Office of Technology Licensing accommodates a variety of flexible licensing structures—including exclusive, non-exclusive, and field-of-use licenses—tailored to fair market value and industry standards.

Can UC Berkeley principal investigators or lab researchers work with the VC’s NewCo?

Yes, university researchers frequently take on outside roles (e.g., scientific advisors, consultants, or technical founders) with startups commercializing a technology they invented. However, all such relationships must strictly comply with UC Berkeley’s conflict of interest and outside activities policies, and must be disclosed through university channels.

Does the VC-sponsored research program provide equity investments?

No. UC Berkeley and its Office of Technology Licensing do not provide VC investments through this program. The initiative is focused on sponsored research relationships expected to create intellectual property and lead to startup formation. Under the program, the VC and UC Berkeley have pre-determined equity ownership and participation rights under the sponsored research agreement.

A startup company that is founded and licensed through this program might later receive an investment from the UC Berkeley Chancellor's Fund or UC Berkeley's affiliated VC funds. Such investment(s) would...

Is VC-sponsored research an optional program for UC Berkeley researchers?

Yes. The acceptance of VC-sponsored research funding by UC Berkeley principal investigators (PIs), faculty, and other researchers is optional. The goal of the program is to provide alternative and complementary means of research support to UC Berkeley.

How is this program different from philanthropic funding of UC Berkeley research?

The VC-sponsored research program serves a narrow group of VC firms focused on frontier technologies and early-stage research within the UC Berkeley innovation ecosystem. Unlike traditional VC firms that invest in commercially validated technologies, these firms pursue high-risk, high-reward research opportunities at the forefront of scientific discovery, recognizing the higher failure rates and longer development timelines associated with frontier research.

The program is designed to supplement (not replace) traditional philanthropic funding at UC Berkeley. Unlike charitable giving...

How does the VC-sponsored research program benefit UC Berkeley?

The program helps expand research funding opportunities that support basic, translational, and applied research programs. It fosters research funding through increased pathways for innovation impact, and creates additional engagement opportunities for faculty and researchers while supplementing existing budgetary constraints. The ultimate goal of the program is providing a new funding stream for research, and a pathway for advancing resulting technologies through startups with strong societal potential, and strengthening UC Berkeley’s broader I&E ecosystem.

Who should we contact to initiate a VC-sponsored research partnership?

You may reach out to Eric Giegerich at egiegerich@berkeley.edu at the Industry Alliances Office or Omar Qarshi at omar.qarshi@berkeley.edu at Venture Capital Services.

How does the lifecycle of a VC-sponsored research agreement work?

Venture capital (VC)-sponsored research programs follow a sequence of distinct phases.

Establish the Agreement: UC Berkeley’s Industry Alliances Office (IAO) and the VC firm negotiate and execute a sponsored research agreement (SRA) or a broader master sponsored research agreement (MSRA). Select Projects: For MSRAs, the VC reviews research proposals submitted by UC Berkeley principal investigators (PIs) and selects which projects to fund. IAO and the VC negotiate and sign project agreements. Conduct Research: The funded UC Berkeley lab...

What is the UC Berkeley VC-sponsored research program?

The venture capital sponsored research program allows VC firms to directly fund cutting-edge research in UC Berkeley labs. In exchange, the program structures a pathway for potential VC-designated startup companies (NewCos) to license the intellectual property resulting from that specific funded research.

Indirect Costs for VC-Sponsored Research

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