Three Critical Elements of Start-Up Success

Abstract

Compared to the already complex and difficult pathway to market for innovative start-ups, innovators in forensic sciences face additional challenges when developing a technology or a service for the market. This chapter presents a(n) (self-)assessment method for founders and investors to estimate and monitor the success potential of a start-up based on three critical elements: time, team, and traction. Time refers to the temporal factors that influence a start-up’s performance and profitability. Team relates to the people who work on the start-up and their characteristics. Traction refers to the evidence of customer demand for the start-up’s product or service. The chapter also features the context for innovation through presenting the evolution of the “helix” models (triple, quadruple, quintuple), and the most popular tools to measure readiness level at increasing complexity, from the well known Technology Readiness Level to the KTH Innovation Readiness Level^TM. Finally, itt also provides examples from the forensic market and suggests some practical tips to balance and optimize these elements, aiming to help forensic science practitioners and researchers to bring their innovations to the market.

Appendices

Annex 1

Patent

A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem. To get a patent, technical information about the invention must be disclosed to the public in a patent application.

One example of a forensic patent is a method for improved forensic analysis using multi-view digital imaging of forensic specimens at a plurality of reflected, scattered, emitted, transmitted or absorbed wavelengths. This device, invented by Patrick J. Treado, David L. Exline and Julianne Wolfe, assigned to ChemImage Corp and filed under patent number US20090092281A1 in 2003, provides new detailed information to distinguish and differentiate forensic materials and samples. The patent was used for 10 years and was abandoned in 2013.

Copyright

Copyright is a legal term used to describe the rights that creators have over their literary and artistic works. Works covered by copyright range from books, music, paintings, sculpture and films, to computer programs, databases, advertisements, maps and technical drawings.

For example, the already mentioned EnCase software is now a copyright of OpenText Corporation, the company which has acquired Guidance Software (the developer of EnCase) in 2017.

Trademark

A trademark is a sign capable of distinguishing the goods or services of one enterprise from those of other enterprises. Trademarks date back to ancient times when artisans used to put their signature or “mark” on their products.

For example, Foster & Freeman Limited has the word “foster + freeman” as their registered trademark (Trademark number 006396791) since 21/11/2008, last renewed on 03/05/2017, next expiry date on 26/10/2027. This trademark is valid for Nice classifications 9, 11, 35, 37, 38, 42, 45, which corresponds to the following fields:

• 9—Apparatus and instruments for use in forensic examination; software and electronic databases for use in forensic examination, the collection of evidence, processing of evidence and police casework management; computer software, hardware and equipment for use in relation to forensic science, computer hardware and software for use in relation to digital imaging and document verification; display screens, cameras, lenses; microprocessors, microscopes, video camera and microscope interfacing equipment and systems; monitors, screens.

• 11—Humidifiers for use in scientific instruments, forensic light sources, alternate light sources, filters for use with torches, lights and lighting apparatus.

• 35—Retail services in relation to apparatus and instruments, software, computers, databases, all for use in forensic examination.

• 37—Maintenance and repair services in respect of instruments for forensic examination; hardware maintenance.

• 38—Providing access to databases.

• 42—Technical consultancy services in relation to apparatus, instruments, and software all designed for use in forensic examination; analysis and comparison of documents, document verification, glass refractive index measurement; software and hardware technical support and software maintenance.

• 45—Forensic services; investigative services; crime scene investigations; collection, processing and management of evidence.

This means that no other individual or organisation may brand its products or services commercialised in the fields above with the same label (foster + freeman) without infringing the trademark.

Industrial Design

An industrial design constitutes the ornamental or aesthetic aspect of an article. A design may consist of three-dimensional features, such as the shape or surface of an article, or of two-dimensional features, such as patterns, lines or colour.

An example of a protected design is a Tech-Long Dual Band Forensic Laser System design filed by Tech-Long Industry Limited under number 002839415-0001 on 28/10/2015 and expired on 28/10/2020. The registration consisted of a set of photos of the system, arrangement of sensors, handles and control panel. Design protection was valid for class/subclass 16.06 (Optical articles), which means that, between 2015 and 2020, a design and commercialisation of a product with similar look in that particular class would have been an infringement of the protected design.

Geographical Indication

Geographical indications and appellations of origin are signs used on goods that have a specific geographical origin and possess qualities, a reputation or characteristics that are essentially attributable to that place of origin. Most commonly, a geographical indication includes the name of the place of origin of the goods.

To date, there is no evidence on the use of this type of protection for forensic tools; geographical indication is typically used for food, beverages or luxury items such as “Tokaj wine” or “Kalocsai paprika”.

Trade Secrets

Trade secrets are IP rights on confidential information which may be sold or licensed. The unauthorized acquisition, use or disclosure of such secret information in a manner contrary to honest commercial practices by others is regarded as an unfair practice and a violation of the trade secret protection.

This kind of protection is focusing on concealment of relevant knowledge rather than filing an official claim on it. As such, it is in contrast with requirements regularly set in public grants, for example awarded byHorizon Europe or other Open Science practices. In early stages of product development, especially while several technical or design solutions are not yet fully developed, nor clear, and therefore cannot be patented or submitted as industrial design, start-ups must rely on it. Having discussion with investors, submitting proposals for grant or negotiations with subcontractors puts this protection at risk, which is usually mitigated by non-disclosure agreements and—in certain countries—by legislation on protection of trade secrets.

Source for definitions in the annex:

World Intellectual Property Organization. Patents. wipo.int. [Online] https://www.wipo.int/patents/en/.

Annex 2

Detailed List of Readiness Measurements and Their Stages

Technology Readiness Levels (TRL)

The nine levels of TRL are:

• 1. Basic principles observed and reported: At this stage, scientific research begins to be translated into applied research and development.

• 2. Technology concept and/or application formulated: At this stage, the practical applications of the technology are identified and the concept is formulated.

• 3. Analytical and experimental critical function and/or characteristic proof of concept: At this stage, active research and development is initiated to establish proof of concept.

• 4. Component and/or breadboard validation in laboratory environment: At this stage, basic technological components are integrated to establish that they will work together.

• 5. Component and/or breadboard validation in relevant environment: At this stage, the basic technological components are tested in a simulated or somewhat realistic environment.

• 6. System/subsystem model or prototype demonstration in a relevant environment: At this stage, a representative model or prototype system is tested in a relevant environment.

• 7. System prototype demonstration in an operational environment: At this stage, a prototype system is demonstrated in an operational environment.

• 8. Actual system completed and qualified through test and demonstration: At this stage, the technology has been proven to work in its final form and under expected conditions.

• 9. Actual system proven through successful mission operations: At this final stage, the technology has been successfully applied in its final form and under mission conditions.

Software Development Stages

• 1. Pre-alpha refers to all activities performed during the software project before formal testing. These activities can include requirements analysis, software design, software development, and unit testing.

• 2. Alpha is the first phase of formal testing, during which the software is tested internally using white-box techniques. Alpha software may contain serious errors and may not contain all of the features that are planned for the final version.

• 3. Beta is the next phase, in which the software is tested by a larger group of users, typically outside of the organization that developed it. The beta phase is focused on reducing impacts on users and may include usability testing. This can be further divided into two sub-stages:

  • a. closed beta with a recruited team of users and

  • b. open beta with public access to the beta version (in case this stage is prolonged it is called perpetual beta)—usually this is the MVP stage for a software

• 4. Release Candidate (aka gamma or delta) is a phase in which the software is refined and tested further before the final version is released. This stage can be further divided into a Release Candidate and a Stable Release stage, where the latter means that the software passed all stages of verification and tests.

• 5. End-of-Life is the phase when the software is no longer sold or supported (updated), there are no new features, fixes or security updates, but it is still functional ‘as-is’. However in some cases the developer releases the source code or abandons its IPR allowing reverse engineering of the software which then can be maintained further by volunteers (typical example are old MS-DOS games).

Please note that there are different adaptations of the model, number of stages can reach from four to seven.

Business Readiness Levels (BRL)

• 1. Initial concept: At this stage, the idea for the business is still in its early stages and may not be fully formed.

• 2. Problem–Solution Fit: At this stage, the focus is on identifying a problem that the business can solve and developing a solution that fits the needs of potential customers.

• 3. Build team and plan: At this stage, the focus is on building a team to execute the business plan and developing a detailed plan for bringing the business to market.

• 4. Customer definition: At this stage, the focus is on defining the target customer for the business and understanding their needs and desires.

• 5. Hypothesis Testing: At this stage, the focus is on testing key assumptions about the business and its potential customers to validate the business model.

• 6. Minimum Viable Product: At this stage, the focus is on developing a minimum viable product (MVP) that can be used to test the market and gather feedback from potential customers.

• 7. Feedback loop: At this stage, the focus is on gathering feedback from customers and using it to improve the product and business model.

• 8. Scale: At this stage, the focus is on scaling the business to reach a larger market and achieve growth.

• 9. Fully embedded in market: At this final stage, the business is fully established in the market and has achieved a stable position.

Social Readiness Levels (SRL)

• 1. Identifying problem and identifying societal readiness.

• 2. Formulation of problem, proposed solution(s) and potential impact, expected societal readiness; identifying relevant stakeholders for the project.

• 3. Initial testing of proposed solution(s) together with relevant stakeholders.

• 4. Problem validated through pilot testing in relevant environment to substantiate proposed impact and societal readiness.

• 5. Proposed solution(s) validated, now by relevant stakeholders in the area.

• 6. Solution(s) demonstrated in relevant environment and in co-operation with relevant stakeholders to gain initial feedback on potential impact.

• 7. Refinement of project and/or solution and, if needed, retesting in relevant environment with relevant stakeholders.

• 8. Proposed solution(s) as well as a plan for societal adaptation complete and qualified

• 9. Actual project solution(s) proven in relevant environment.

The Innovation Readiness Levels (IRL)

• 1. A new idea.

• 2. The business concept.

• 3. Idea/business proposal.

• 4. Create an actionable plan.

• 5. Scaled testing.

• 6. Design and testing of support systems.

• 7. Full testing of systems and products.

• 8. Ready for full scale operation.