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Partnerships

Sponsored research, pilots, licensing:
industrial partnerships before the finished product.

Pierre Bauër· 10 min read· Deeptech Partners

One of the most persistent myths in the deeptech ecosystem is that industrial partnerships are reserved for mature technologies. That until you have a commercial product, clinical validation, a TRL 7 or above, industrials won't sit at the table.

This myth is false. And it costs dearly those who believe it.

Large industrial players — pharmaceutical companies, chemical companies, manufacturers, energy companies — face constant pressure on their innovation pipeline. They actively seek technologies in development. They have budgets for it. But they use contractual formats adapted to the risk represented by an immature technology — formats that most deeptech founders don't know or don't know how to negotiate.

Five formats to know

1. The Sponsored Research Agreement (SRA)

This is the most powerful format for early-stage startups. An industrial company funds part of your R&D in exchange for access rights to the results — typically an exclusive or non-exclusive licence option on the applications that interest them.

For the industrial player, it's an investment in a technology they couldn't develop themselves as quickly or effectively. For the startup, it's non-dilutive funding that validates the industrial relevance of the research direction.

Typical amounts range from €50,000 to several hundred thousand euros per year. The duration is generally one to three years. Negotiation essentially revolves around two points: the intellectual property generated during the contract period (does it belong to the startup, the industrial player, or both?) and the scope of the licence option (applications, territories, duration).

Watch out: a poorly negotiated SRA can transfer too broad an IP scope. Ensure the option scope is clearly limited to a specific application, and that you retain the freedom to develop other applications with other partners.

2. The Joint Development Agreement (JDA)

In this format, both parties co-develop a solution. The industrial player typically brings market access, field data, test equipment, or knowledge of application constraints. The startup brings its technology and R&D capabilities.

The JDA works well when both parties have complementary capabilities and want to share the risk. Negotiation focuses on ownership of jointly generated IP — often the most complex point, and one that must be anticipated before signing.

3. The Pilot Agreement

A paid pilot or proof-of-concept is often the first form of partnership accessible to deeptech startups. The industrial player funds validation of your technology in their real operating conditions — in their plant, with their materials, on their processes.

The negotiation challenge here is simple but critical: the pilot must be paid. Even symbolically. An industrial player who refuses to pay for a pilot isn't genuinely committed — they simply want to see if something interesting emerges without taking any risk. A payment, even modest (€20,000 to €100,000), creates reciprocal commitment and fundamentally changes the quality of the interaction.

The pilot also has external commercial value: it's a reference you can mention in future approaches, even if you cannot disclose its results.

4. The Option Agreement

A company pays to reserve the right to license or acquire your technology under defined conditions, within a given timeframe. This format is particularly useful when your technology is still too immature for a real licence agreement, but an industrial player wants to secure a privileged position.

For the startup, it's immediate cash and a strong validation signal. For the industrial player, it's an inexpensive strategic insurance. Both parties have an interest in the technology progressing — which can also open the door to active support (access to test equipment, data sharing, introductions to other players).

5. Partial anticipatory licensing

If you already have protected intellectual property assets, you can license certain rights in a very targeted way — a specific application, a particular industry, a geographic territory — without touching the rest of your IP portfolio.

This format generates immediate revenue and can be structured with variable royalties based on volumes or usage milestones, aligning both parties' interests with the success of the application.

How to choose the right format

The right format depends on three factors: your development stage, what you have to offer, and what the industrial player actually wants.

If your technology is still in fundamental R&D, the SRA is the most appropriate format — it funds your research while creating an industrial link. If you already have convincing preliminary results on a specific application, a pilot agreement is more appropriate — it validates and creates a reference. If you have protected IP on an aspect of your technology, partial licensing or an option can generate cash quickly.

What to avoid: proposing the format that suits you without understanding what interests the industrial player. An industrial player will rarely accept an SRA if their real question is "does this work in my conditions?" — in that case, what they want is a pilot. Understanding their decision logic is the prerequisite for choosing the right format.

The best partnership isn't the one that pays you most in the short term. It's the one that places you inside an industrial organisation — with access to its real constraints, its data, its network — while funding your development.

These formats exist. Industrial players know them. Most deeptech founders don't. It's precisely this information asymmetry that makes early negotiations so difficult — and explains why so many good deals fall through, simply because the right structure was never proposed.

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