ETI invests in technologies that meet stringent selection criteria:

Strong intellectual property (IP) position
The key to the fund's investments is significant and protectable IP, which is a necessary perquisite for consummating strategic alliances with industry partners who could otherwise circumvent the portfolio company's technology to develop a competitive product. Historically, this is why the ETI funds have primarily made investments in life science opportunities. However, many other areas of research also apply, including nanotechnology, application convergence between IT and biotechnology, alternative energy applications, chemical engineering, and other technology for which a solid defensible patent can be obtained.

Prior research grants in excess of $2 to $5 million
The viability of the technology needs to be demonstrated before an external investment is made. A $2 million to $5 million minimum of previous investment in the technology, most often through NIH grants, gives the research institutions and corresponding scientists the opportunity to complete technology validation initiatives. Thus, prior to the ETI fund investment, the science is proven to have merit within the lab and has had peer reviews by fellow Ph.D.s on the grant review committees.

Technology applications in multiple markets
The "platform" technology needs to address multiple market opportunities through various permutations of the science applied to commercializable applications. This enables the portfolio company to develop a relationship with more than one industry partner, which spreads the risk and maximizes return on investment.

Potential short-term revenue (<18 months) - The goal is to make each of the portfolio companies generate revenue within 18 months. As such, there needs to be an existing market for at least one of the technology applications that can generate short-term cash flow from a partner.

Partner revenue opportunity (>$500 million) - The industry partners need incentives to work with the portfolio companies. As such, given that most of the partners ETI targets are multi-billion dollar companies, they must see at least a half billion dollar annual revenue opportunity.

Rapid market penetration - The technology needs to be "disruptive" or "breakthrough" and revolutionize an existing market or create a new market. "Breakthrough" technologies are those products or processes which are novel-they are not merely improvements on existing substances or methods, but rather, represent an entirely new and superior technological approach.

Scientist involved, business oriented, and manageable - The most important human resource is the founding scientist(s). For a relationship with the fund to be successful, these scientist(s) must prioritize the business aspects of their technology and work with ETI to develop products that satisfy the selected markets. ETI does not ask the scientist(s) to leave the university. Rather, these individuals are offered equity and a consulting contract with the portfolio company.

Portfolio Synergy - The synergy between the ETI portfolio companies enables the leveraging of existing relationships with industry partners, market knowledge, and opportunity to combine IP to further develop a market opportunity and/or obtain additional grant funding.

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