A company coming out of a university lab may still need access to specialized capabilities, labs, or equipment on campus. There are several ways to enter into a contract for such access that are in accordance with university, state, and federal policies and that can allow the company to retain the IP (Intellectual Property) created while accessing facilities and equipment.

Startup space in Bioventures or TRI  have access to shared equipment as a condition of the lease. Use of university owned equipment or assets by companies outside of leased space or rental of UI equipment may be allowed if there is additional capacity beyond what is required for university-directed activities AND the companies pay for access to these resources.

University startup and other external companies have access to core facilities on campus. Priority for the use of core facilities will go to institutional needs. Core facility use fees will be dependent on the status of the company as outlined below.

Companies may not conduct human subjects research in UI space, including leased space or in designated incubators. Companies may, however, sponsor human subjects research through a sponsored research agreement (SRA) routed through and negotiated by DSP.

Considerations for startup-sponsored human subjects research

• Conflict of Interest (COI) requirements apply.
  • Individuals employed by both UI and startup may not be allowed to participate in human subjects research or may do so only through COI management plan approved by the Vice President for Research.
• Company employees may not be listed as a UI research team member or serve as the principal investigator of the sponsored research agreement.
• Companies or individuals “engaged in research” per Common Rule criteria must enter into an appropriate reliance relationship with UI IRB (Institutional Review Boards) or seek IRB approval from a commercial IRB for the contracted research.
• As “sponsor” of the research, companies are responsible for CT.gov registration and reporting requirements unless formally delegated to the University of Iowa principal investigator
• Research results, data and specimens may only be shared with company through an appropriate SRA or DUA.
  • Company is responsible for appropriate security requirements for data/specimen storage.
  • Consent forms must indicate that data/specimens will be shared, how they will be used, and what will happen to their data/specimens at the conclusion of the research.   

The university has established an animal care and use program which is overseen by the Institutional Animal Care and Use Committee (IACUC) for all animal use at the University of Iowa. To foster economic development within the State of Iowa, the university is also willing to make these services available to qualified University of Iowa faculty startup companies for a fixed period, up to five years. The Office of Animal Resources will provide animal husbandry, regulatory review and oversight, and veterinary services on a fee-for-service basis. 

Startup companies may also contract animal research to university collaborators using a research services agreement. View service fees (HawkID login/password required).

Safety oversight is the responsibility of the company owner. Companies leasing space from the university must adhere to all relevant state and federal regulations and acquire and maintain any necessary licenses or permits, such as those for radiation use or import/transport. Companies using university space to conduct research with recombinant or synthetic nucleic acids must adhere to the NIH Guidelines for Research Involving Recombinant or Synthetic Nucleic Acid Molecules and obtain necessary approvals from the university’s Institutional Biosafety Committee (IBC). Registrations/applications for the review of company-sponsored research should be submitted separately from applications for review of UI-sponsored research.  Companies are responsible for maintaining an accurate chemical inventory with EHS Assist for university reporting purposes; chemical inventories must be reviewed annually and documented within EHS Assist. 

Visit the  Environmental Health and Safety (EHS) website for a list of services and their associated fees. Radiation and waste service agreements must be signed for related services to occur. EHS will not conduct audits or reviews of safety programming, regulatory compliance, or training for the company unless required for university compliance.

 The company is responsible for mitigation of any damage, contamination, etc., to the leased university space, as well as the disposal costs associated with all radioactive and other hazardous wastes. 

Sponsored research agreements are a mechanism for the startup company to contract for work to be performed by university personnel using university facilities and resources. A startup company may sub-contract to the university from Small Business Innovation Research (SBIR), Small Business Technology Transfer (STTR) or similar awards for which the company is the prime awardee and may also use their own funding to contract with the university for the provision of research services. 

Considerations for Sponsored Research Agreements

• An individual cannot be named as PI (principal investigator) for the startup company and for the university on an agreement.
• The university PI cannot provide signature authority or administrative oversight of the project for the startup company or negotiate terms on behalf of the company.
• When a company applies for federal or other sponsored funding and plans to contract with the university to perform a portion of the research, the university PI must route the subaward. proposal for the UI portion of the work before company submission to the sponsor.
• Companies are responsible for proposal development and submission requirements, including System for Award Management (SAM) registration, use of sponsor system, etc.
  • Company may not use UI personnel for proposal development activities.
  • DSP or departmental research administration cannot register the company or company employees in external sponsor systems.
  • Entrepreneurs may work with BioConnect Iowa to prepare their SBIR/STTR applications.
• Agreements to the UI must include the appropriate F&A.
• The startup is encouraged to obtain their own professional services for legal advice, accounting and financial reporting, proposal development, etc.

Subawards from the UI to startup companies should follow these guidelines:

• An Individual cannot be named as PI for the startup company and for the university on the subaward agreement.

• The UI PI cannot provide signature authority or administrative oversight of the project for the startup company. The UI PI cannot negotiate subaward terms on behalf of the company.

• The company’s address, phone, and email cannot be a university address, phone, or email unless the company has an agreement with the university to lease university space, phone service, and email.   

• Contacts or key personnel for the company cannot use a university address, phone, or email unless they are company employees, and the company has an agreement with the university to lease university space, phone service, and email. 

The outgoing subaward procedures, roles, and responsibilities apply the same as for other subawards issued by the UI.

• Subrecipient F&A cost rates: 

  • Must follow the prime sponsor’s F&A limits and be supported by appropriate documentation. 

  • For federally funded projects, confirm the subrecipient has federally approved fringe benefit and F&A rates. 

  • If no federally negotiated rate agreement exists, the 15% modified total direct costs (MTDC) de minimis rate applies. 

  • The University of Iowa does not negotiate F&A rates with subrecipients; the above limits apply. 

  • Contact DSP with proposal budget questions, including review of subrecipient F&A and fringe benefit rate documentation.

Conflict of interest in research involves situations in which an investigator has a financial interest that may compromise—or appear to compromise—professional judgment in the design, conduct, or reporting of research. Holding equity in a non-publicly traded company or receiving payments > $5000 in past twelve months AND participating in research in which that company has an interest in the outcome (sponsoring the research or utilizing technology licensed to the company) creates a significant financial interest according to University of Iowa policy and federal regulation. Investigators are required to disclose financial interests in eCOI prior to initiating research, regardless of the funding source. The policy also requires investigators to disclose new financial interests that arise within 30 days of the occurrence of the new interest. The COI team will work with investigators to create a management plan, if possible.

Faculty are encouraged to pursue entrepreneurial activities, including forming or participating in a startup, but these activities must not interfere with their ability to meet University of Iowa responsibilities. A conflict of commitment occurs when startup work requires time or effort that compromises—or appears to compromise—a faculty member’s ability to fulfill teaching, research, service, or administrative duties. All startup involvement must be disclosed in the eCOI system, even if the work takes place outside normal business hours or off campus, so the college can assess whether the engagement creates a conflict. If the college determines that a faculty member’s startup activities could interfere with their UI obligations, college leadership will work with the individual to develop a written management plan that may include limits on time commitments, adjustments to duties, or other measures to ensure that university responsibilities remain fully met.

[Revised] When a UI employee supervises, evaluates, or has decision‑making authority over another UI‑affiliated individual (faculty, staff, graduate student, or postdoc) who also owns equity in or works for the employee’s startup, the university’s Conflict of Interest in Employment (Nepotism) policy is triggered. Co‑owning with or employing another UI-affiliated student or employee in a startup creates a significant outside business relationship, which can influence—or appear to influence—an individual’s decisions in their UI role. This includes decisions about teaching assignments, performance evaluations, salary adjustments, workload, or research opportunities. For example, if two UI faculty members co‑own a startup and one of them serves as the departmental executive officer (DEO) of the other’s department, disagreements or business pressures from the startup could affect (or appear to affect) departmental decisions. In this case, the DEO must be removed from all evaluative or supervisory responsibilities related to the co‑owner’s UI employment. Disclosures should be made as soon as the conflict arises and no later than 90 days after the relationship begins through the eCOI system.

[Revised] A workplace conflict of interest occurs when involvement in a startup could influence—or appear to influence—an individual’s responsibilities or decision‑making at the University of Iowa. Such conflicts may arise through financial interests, but also through non‑financial relationships, including situations in which a UI student or employee who works for or holds equity in a startup is also supervised, instructed, advised, or evaluated by the same individual at the university. A conflict exists when a faculty or staff member hires or engages UI employees or UI students for a startup while simultaneously holding supervisory, instructional, advisory, or evaluative authority over those individuals at the university (e.g., serving as their supervisor, instructor, advisor, PI, or committee member). In these circumstances, the startup relationship may influence UI decisions related to performance evaluations, grades, research assignments, or workload. A conflict also occurs when work, research opportunities, or projects are directed to a startup that could reasonably be performed by the university; in such cases, the university must be offered the right of first refusal before the opportunity is referred externally.

If a company owned by a faculty member seeks to do business with the UI, the company is considered a conflict-of-interest vendor. UI Purchasing must evaluate any proposal to purchase goods or services from the company, and the faculty member/owner of the company must not be involved in UI purchasing decisions related to the company.

The guidelines governing the use of university facilities and resources by startup companies also apply to students and postdoctoral researchers involved with a startup.

Participation in startup activities should not distract from a student’s progress toward completing graduation requirements or a postdoc’s career goals. Advisors and mentors should provide guidance and support to ensure that participation in the startup aligns with the individuals’ educational and career objectives.

Students and postdocs are in an inherently vulnerable position and care should be taken to ensure they are engaged in startup activities voluntarily. They should never be coerced, pressured, or compelled to work for or on projects funded by the startup. The decision to participate should be based on their own interests and career goals. 

Before involving students and postdocs in university startup activities, consider whether the activities could:

• interfere with the student’s progress toward degree completion or the postdoc’s training timeline
• negatively impact the student’s requirements for graduation or impact the student’s ability to maintain full-time enrollment
• place restrictions on the publication or presentation of research results that may impact a student’s thesis, dissertation, oral presentations, or other requirements for degree completion
• conflict with the conditions of the individuals’ funding (e.g., fellowship or training grant, which restricts related work for additional compensation)
• conflict with the individual’s visa status. Most international postdocs have visas that would not allow work outside the University of Iowa. Those with F-1 visas with an option for practical training (OPT) should check with the college or university who issued their I-20 before initiating work with a startup 

Engaging students and postdocs in activities related to a startup company requires approval from local and senior leadership. For those approved, appropriate management plans for conflicts of commitment and interest must be developed as appropriate. These approvals ensure that all parties are informed and supportive of the student’s or postdoc’s engagement with the startup while safeguarding their academic interests and maintaining compliance with institutional policies. 

Undergraduate Student Approval. Undergraduate student involvement in startup companies requires approval from the academic advisor or mentor, the director of undergraduate studies, or another administrator responsible for their academic program, and the associate dean for undergraduate education/associate dean for academic affairs (or equivalent) in the student’s college.

Graduate or Professional Student Approval. Graduate or professional student involvement in startup companies requires approval from the academic advisor or mentor, the departmental executive officer responsible for their academic program, and the associate dean for graduate or professional education in the student’s college. 

Postdoc Approval. Postdoc involvement in startup companies requires approval from the postdoc’s mentor, the departmental executive officer or director of the postdoc’s hiring unit, and the associate dean/associate vice president/associate provost in the postdoc’s college or central services unit. In most cases, the final level of approval will come from the associate dean for graduate education in the postdoc’s academic college.