From lab to launch: how Out The Back Ventures turns university research into companies

Keong Chan and John Rock, co-founders of Out The Back Ventures (OTB), joined us at RES Hub Impact, UTS’ dedicated research translation space, to explore how their company fills the missing gap that sits between the lab and the investor.

For OTB, the opportunity sits at an early stage, when research has strong potential but may not yet have the revenue, business model or commercial validation that traditional venture capital investors expect.

A co-founder, not a service provider

OTB creates a company with the university to commercialise university owned intellectual property. It acts as the commercial founder and runs the company until a permanent team is in place. Researchers can choose to stay in their university posts or join the company, and they don't have to become the chief executive. 

OTB’s model brings together the researchers’ technical expertise with their commercial expertise in forming companies, attracting investment, developing partnerships and preparing the technology for its next stage. The university keeps its IP framework, its founding equity and its researchers.

As Keong and John explained, the aim is a genuine partnership. Researchers continue doing what they do best while commercial partners focus on building an investable company around the research.

“We are interested in an early idea that we can help you develop into something impactful,” John said.

Start with the impact

Keong advised starting with the impact not the financials.

For early-stage technologies, projected revenue can only tell an investor so much. Keong and John encouraged researchers to articulate the bigger vision: what is your passion, what difference could this research make, who could benefit and why does solving the problem matter?

“Think about the impact first and what your idea can potentially do,” John advised.

It’s about pitching the vision. It’s the blue-sky investment opportunity. You need to explain your vision, the clarity of your vision, and how it can create impact.

The human story matters too. Why did the researcher start working on the problem? What makes the opportunity worth pursuing?

For investors with many opportunities competing for their attention, a clear and memorable vision can be what starts the relationship.

“It’s about pitching the vision. It’s the blue-sky investment opportunity. You need to explain your vision, the clarity of your vision, and how it can create impact,” Keong said.

“You need to be able to translate technical concepts into something that resonates with people.”

What makes research investable?

Keong and John highlighted three things they look for when considering university research: the research and the people behind it, defensible intellectual property, and evidence of industry interest.

Industry interest does not necessarily mean having a customer or contract already secured. An organisation willing to explore, test, validate or eventually use a technology can help demonstrate that the research is addressing a genuine need.

This is why early conversations with potential customers and industry partners can be so valuable. They help researchers understand where their technology could fit, while giving investors an indication that there is interest beyond the university.

Funding the next stage

OTB’s approach is designed to help research cross the funding gap between university research and later stage investment.

One pathway discussed during the session could see university proof of concept funding combined with early private investment, government incentives and additional capital raised through OTB’s Capital Access Platform.

The funding is then used to progress the research towards a defined milestone, such as external validation, a prototype or trials. The objective is to reach a point where the company and technology are ready for their next stage of investment.

Relationships moving technologies forward

While funding is important, Keong and John repeatedly returned to the importance of relationships.

“You have to work with people to come up with something that is investible,” Keong said.

Their experiences commercialising university technologies showed that successful translation rarely follows a perfectly structured process. Introductions, conversations and relationships with researchers, universities, investors, customers and industry partners can determine whether a promising technology progresses.

Their work with the University of Adelaide battery technologies provides one example. OTB worked with researchers to identify several promising technologies, establish Iondrive and fund further university research. Iondrive was subsequently acquired by an ASX listed company, enabling ongoing investment in research  at the university.

You have to work with people to come up with something that is investible.

They also discussed RapidGraphite, which uses Curtin University research to develop battery grade graphite. Again, building the right commercial relationships helped create a pathway for the technology beyond the university.

A global pathway for Australian research

OTB works across Australia, the US, the UK and Europe, connecting research with potential funding, partners and markets internationally. They also have relationships with over 100 institutions worldwide.

Despite differences in funding and research ecosystems around the world, Keong and John said the quality of Australian research is not the issue.

The challenge is connecting excellent research with the right combination of people, capital, commercial expertise and industry partners to move it forward.

Engage early

For researchers considering commercialisation, John and Keong emphasised the importance of starting the conversation early. 

OTB positions itself as a collaborator with the commercialisation office, not around it, working alongside the university to take your research to the next stage.

Research does not need to be perfectly packaged before researchers begin talking with commercialisation teams, investors or potential end users. Those early conversations can help identify what evidence is needed, where industry interest lies and which milestones could make an opportunity more investable.

We are interested in an early idea that we can help you develop into something impactful.

Keong and John also encouraged researchers to follow up and take an active role in developing those relationships.

Ultimately, translating research is not simply about finding an investor. It is about building the right partnership around an idea and creating a shared vision for where that research could go.

The research may start the journey, but people, partnerships and a clear vision for impact can help take it from the lab into the world.

Getting started

OTB's process has three steps:

1. A first conversation, under a confidentiality agreement if the university wants one.
2. OTB returns with a view on who would buy the technology and what it would take.
3. They agree on a first step. This is usually an option and a funded research program in the university's lab, or a regular pipeline review.

“Reach out to us if you have an idea and want to take the next step,” Keong said.

OTB is choosing projects for 2027 now. Contact Keong Chan or John Rock through the UTS Research Translation team by emailing Commercialisation Manager Jude Amalraj at Jude.Amalraj@uts.edu.au.

What’s next?

• Contact Jude via email to start the conversation.
• Visit outthebackventures.com.