How Startups Get Moving: Lessons on Early-stage Funding from the AUTM Canadian Region Meeting
By Paula Mendonça, Executive Director ot the Ocean Startup Project
At the AUTM Canadian Region Meeting in Montreal, a panel of experts gathered to explore a familiar but thorny topic for tech transfer professionals: how do early-stage startups get off the ground—and what role can TTOs play in that journey?
The session, titled “Early Stage Funding Models: How Can Startups Get Off the Ground with Support from External Parties?”, brought practical insight to a question that’s become increasingly urgent as research institutions push to turn more discoveries into ventures.
Moderated by Paula Mendonça, Executive Director of the Ocean Startup Project, the panel featured Sahar Ansary of R&D Partners, Diana Horqque of V1 Studio, Sévrine Labelle of BDC Technology Seed Investments, and Jesse Vincent-Herscovici of Axelys. Across the conversation, one central message emerged: there’s no single funding path, but there are smarter ways to start.
The panelists emphasized that spin-offs should exhaust non-dilutive funding—such as government grants, pitch competitions, and tax credits—before looking to equity financing. Accepting outside investment too early can dilute ownership and limit future flexibility, particularly for university spin-offs still refining their business model or product-market fit.
Strategic alignment with investors also mattered deeply. The panel warned against taking funding from groups who may push for rapid commercialization or an early exit that doesn’t match the company’s long-term goals. Mission-driven companies, especially those rooted in university research, benefit from investors who understand the timeline and complexity of translating lab work into real-world solutions.
Team dynamics were another recurring theme. Panelists encouraged TTOs to assess whether an academic founder is ready to lead the venture or might be better suited to a technical or advisory role. More important than titles, they said, is having a complementary founding team that brings both scientific and business expertise to the table.
The conversation also touched on how startups present themselves to funders. It’s not just about strong IP or novel technology. Investors want to see evidence of fiscal responsibility—how early funds have been used, whether grant programs have been leveraged, and whether the company has a plan for growth. Clear thinking around milestones, budgets, and commercialization timelines all help make a stronger case.
Attendees left with several resources to explore, including Fundica, a free tool for identifying relevant grants and funding programs, and the KTH Innovation Readiness Level, a framework to help startups assess their progress and needs across technical, team, IP, and market areas.
Throughout the session, the role of the TTO remained front and center. While funding decisions ultimately rest with the startup, TTOs are often in the best position to guide early strategy, connect founders with incubators and advisors, and help them avoid common pitfalls.
In the end, the panel offered a clear takeaway: early decisions shape long-term success. By prioritizing the right funding sources, building the right teams, and staying grounded in their mission, university spin-offs can move from potential to impact—with the tech transfer office as a key partner every step of the way.