Summary of Client & Challenge They Faced
A circular chemistry technology company developed an advanced waste plastic pyrolysis process for producing green alternatives to fossil-based commodity chemicals. As they prepared to raise funding and build their first commercial-scale facility, key investors wanted to understand and validate the company’s technology licensing strategy. The company
sought help to learn which licensing strategies were most viable and most profitable for their proposed technology.
Our Approach to the Solution
LEC experts began by performing an assessment of the company’s current licensing strategy, including terms, marketing plans and licensee support services, such as engineering and guarantees.
Based on their technical analysis of the pyrolysis process and experience in the industry, the LEC team performed a market study to verify the potential for licensing the plastic recycling technology. An evaluation of financial projections based on different licensing models was conducted including the timing and magnitude of revenue streams, as well as associated deployment costs.
Based on the existing licensing structure and the new licensing models developed, the LEC team recommended improvements to limit risk and maximize the technology developer’s return on investment.
Client Results & Benefits
The technology developer followed the recommendations of the LEC experts, reevaluating their approach to technology licensing with the understanding that no one strategy could accommodate all stages of development. Following a more flexible approach to licensing, they sought to build partnerships for the first commercial deployments as the value proposition and process economics were validated.
While they initially wanted to pursue a pure licensing model at launch, the company understood that this would only be effective once the economics was proven at multiple facilities. With a clearer understanding of which licensing models would be most effective at each stage of business growth, the company was better prepared to raise funds and establish its first commercial-scale facility for converting waste plastics into usable alternatives to petroleum-based chemicals.