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Everything you need to know about BIRAD's new commercialization track: principles, a comparison with the existing track, and answers to common questions.
BIRAD is pleased to announce an additional commercialization track - the Nachshon Track: a new track for forming companies, alongside the existing track. The track operates as a pilot for three years, beginning July 14, 2026. Under this track as well, BIRAD supports the entire process, end to end:
The process begins with a meeting with BIRAD's business development team. Together with the researchers, BIRAD evaluates the invention, its readiness, and its fit for the track. This guidance — from the idea stage to a signed agreement - provides a professional envelope of experts who understand commercialization.
BIRAD ensures the entire process complies with the University's Discoveries Regulations, and grants the new company an exclusive license to the technology, in a legally structured manner.
BIRAD acts as trustee of the knowledge. Through the "commitment to advance the technology" component, BIRAD sets milestones and verifies that the company is genuinely advancing the product. If the company fails or ceases to operate, BIRAD ensures the rights return to the researcher and the university, so an alternative commercialization path can be found. The safety net guarantees that the researchers' scientific work and knowledge assets are not "lost" inside an inactive company.
The university (BIRAD) holds no shares in the company. The capital structure is determined solely between the researchers and the investors (without limitation) - with BIRAD's assistance where needed. A small portion (5%) of the researchers' shares is donated to a dedicated fund, for the benefit of the researchers' faculty (the researchers may also enjoy a tax benefit arising from the donation)*. This way, your success directly supports the next generation of research in your own faculty.
Instead of equity, BIRAD is entitled to a fixed, non-dilutable percentage of the proceeds in an exit event (sale of the company, IPO, or change of control). The percentage is set by the Standard Set — a published, product-based classification of the license. For example:
| Standard Set | Typical products | % of exit |
|---|---|---|
| Fast - e.g., software | Digital-only — software, SaaS, algorithms, AI | 2% |
| Medium | Hardware, materials, non-regulated devices — any other case | 3% |
| Long - e.g., pharma / biotech (anything requiring regulatory approval) | Regulated products — pharma, biotech, medical devices and medical software | 4% |
The track includes a mechanism allowing the company - at its sole discretion - to buy down BIRAD's exit share as its valuation grows: 0.5% for every $50M increase in company valuation. In any event, BIRAD retains at least half of the original exit percentage.
Upon signing the agreement, the company and its investors choose one of two options: ongoing royalties on sales (at the rate set by the Standard Set), or a one-time payment — a single amount paid when cumulative sales reach a pre-defined threshold, after which no further royalties on sales apply, permanently. Payments are calculated on a sales basis, using a simple, standard, auditable definition.
| Standard Set | Upon cumulative sales of | One-time payment |
|---|---|---|
| Fast | $4 million | $400K |
| Medium | $10 million | $1 million |
| Long | $20 million | $2 million |
The exclusive license is conditional on genuine progress: milestones are set in the agreement together with the company, and a material failure to meet them allows the university to revoke exclusivity - so that if, over the years, no commercial product emerges, the rights and the accumulated knowledge return to the university. This mechanism ensures that inventions funded by public money and by the knowledge of Bar-Ilan researchers do not sit on the shelf - and that your knowledge is not lost even if the company does not succeed.
Under the existing track, all income - royalties, license fees, or proceeds from realizing holdings - is distributed per the fixed formula in the regulations: 40% to the researchers, 40% to the university, 20% to BIRAD. Under the Nachshon Track, by contrast, the researchers' consideration does not pass through BIRAD - it is in their hands from day one, as Nachshon shares.
| The Existing Track | The Nachshon Track | |
|---|---|---|
| Who holds the rights | Per the fixed formula in the regulations: 40% researchers, 40% university, 20% BIRAD | Researchers hold founder shares directly, without limitation; the university - no shares. The IP is managed at the university and remains its property. |
| Researchers' consideration | 40% of net commercialization income | The full value of the founder shares they hold — directly, from day one |
| University's consideration | 40% of net commercialization income | A fixed percentage of the exit (2%–4%) + royalties or a one-time payment from the company |
| Negotiation with investors | Deal-by-deal negotiation | Uniform terms, known in advance - fast signing |
