Yissum Research Development Company Ltd. Files IPO Prospectus: Powering Global Innovation from Hebrew University’s Breakthroughs

The Hebrew University of Jerusalem (abbreviated as HU) is hailed as “"The Harvard of the Middle East"” is the first university of the Jewish people.

Since its establishment in 1918, the Hebrew University has received8 Nobel Prizes、1 Fields Medaland1 Abel Prize, a veritable symbol of Israel's highest level of scientific research.

Hebrew University focuses its research on multiple cutting-edge fields, with medicine and pharmaceuticals being a top priority. It is reported that Hebrew University has five affiliated hospitals and has successfully developed effective drugs for the treatment of ovarian cancer in recent years.Liposomal Doxorubicin Hydrochloride Injectionand medications for treating Alzheimer's diseaseExelon(Exelon) and other medical innovations.

In fact, the Hebrew University of Jerusalem has not only achieved remarkable scientific research outcomes in the field of medicine and pharmaceuticals, but also holds significant influence in technology transfer. As early as 1964, the Hebrew University of Jerusalem establishedTechnology Transfer Company—Yissum, which is specifically responsible for the transfer and commercialization of scientific research achievements and advanced technologies from the Hebrew University。

To date, Yissum has registered more than10,150 Patents, covering3,030 Inventions, help1,050 technologies have been licensed, a total of have been established worldwideOver 200 Startups，Annual sales profits exceed $2 billion., a figure that far exceeds those of the world’s top institutions, the Massachusetts Institute of Technology and Harvard University.

Yissum’s outstanding performance in translating scientific research into practical applications has not only amazed the world but also raised many questions: What makes Yissum unique in promoting the translation of scientific research achievements in the medical field? What insights can it offer to research institutions worldwide? To answer these questions, VCBeat conducted an in-depth analysis of Israel’s largest technology transfer organization.

The birth of Yissum seemed to be “destined,” namelyDriven by External Demand and Internal Momentum。

Here, “external demand” primarily refers to the Israeli market.The Needs of Economic Development。

Israel was established in 1948. In the early years of its founding, the country had a very weak economic foundation. To accelerate economic development, the Israeli government proposed the strategy of “building the nation through science and technology,” aiming to enhance the levels of industrial and agricultural production by relying on scientific and technological advancements.

However, at that time, Israel’s industry was dominated by small and medium-sized enterprises (SMEs), most of which were artisanal workshops, leaving the country in a dire situation where it essentially “had nothing.”Funding Shortages, Weak Technological Capabilities, Talent Deficits, and Insufficient Resources. In this case, IsraelUrgent Need for Practical Technologies Capable of Rapid Industrialization。

Technological advancement inevitably relies on research universities and institutes. At the time, however, Israel had only two universities—the Hebrew University of Jerusalem and the Technion – Israel Institute of Technology—and one research institute, the Weizmann Institute of Science. As one of these key institutions, the Hebrew University of Jerusalem naturally shouldered a significant portion of the country’s scientific research burden. It is reported thatAt that time, Israel's three major research universities collectivelyAccounted for over 75% of China's civilian scientific research, with the Hebrew University alone accounting for 30%.。

However, since universities are non-profit institutions and Israeli lawProhibition on Non-Profit Organizations Engaging in Commercial Activities, thus resulting in the Hebrew University of Jerusalem having numerous scientific research achievements but being unable to directly engage in profit-oriented technology transfer.

In addition, as they are still in their early stages, major Israeli universities, led by the Hebrew University, lack relevant experience in academic administration, scientific research, and technology transfer, and their research systems are not yet well-established, which has directly resulted in scientific research outcomesLengthy Review Process, which has seriously hindered the process of technology translation.

There are external factors, of course, but also internal ones; therefore, the aforementioned “internal drive” primarily refers to the Hebrew University’s self-financing model based on research funding.

Due to the economic recession, Israel’s research funding for the Hebrew University has been decreasing year by year. Coupled with the decline in donations from society, enterprises, and individuals, this has caused the Hebrew University’sSevere Shortage of Research Funding, let alone the translation of technological achievements.

In the face of this situation, the Hebrew UniversityInitiating Plans to Raise Research Funding Through Market-Oriented Approaches, thereby achieving self-sufficiency.

However, the Hebrew University in its early stages “Emphasizing Academics Over Applications”, often using the level of basic research as the primary metric for evaluating universities and researchers, while neglecting applied scientific research that can promote the development of industrial and agricultural production. This has led to a disconnect between certain research achievements at Hebrew University and market demands, making their translation into practical applications extremely difficult.

Faced with this issue, the Hebrew University found a solution among immigrant talents. In the 1990s,The Dissolution of the Former Soviet Union and the “Exodus” of Scientists and Engineers to IsraelSeizing this opportunity, the Hebrew University of Jerusalem has attracted numerous top-tier technical talents, who have not only brought cutting-edge achievements to the university but also integrated robust research commercialization mechanisms into its innovation ecosystem.

Therefore, driven by the needs of national economic development and leveraging previously accumulated technology transfer experience, the Hebrew University boldly embarked on establishingYissum Technology Transfer Company, circumventing legal provisions that prohibit universities from engaging directly in commercial activities, transfers its scientific and technological achievements to the public and secures research funding.。

The original intention and operational standards of Yissum are simple, namelyFacilitate the commercialization of on-campus research achievements and reinvest the proceeds to support further research, thereby enabling professors and researchers to focus on their scientific work.. To achieve this goal, Yissum transforms the technological achievements of the Hebrew University through the following process:

Step 1: Identify Creative Ideas and Industry Needs

In the process of translating scientific research achievements into practical applications, the achievements themselves serve as the prerequisite for translation and originate from researchers. Creativity and innovation are the sources of these achievements; but where do creativity and innovation come from? Yissum provides the answer: researchers and industry.

Therefore, Yissum encourages and excels at identifying new ideas and concepts within the university, while also paying close attention to industry needs.

at the Hebrew University ofCampusInside,Yissum’s technical experts engage in daily communications with researchers, closely monitoring the progress of their research.Currently, most technology transfer offices passively acquire innovation and industry information, relying excessively on researchers to submit projects. Yissum, however, takes a different approach by proactively engaging with researchers to understand their ideas and the progress of their technical research in advance.

Therefore, Yissum is able to collaborate with researchers to jointly conceive and create these innovative projects, as well as to collectively overcome technical bottlenecks.

And inMarket, YissumProactively identify industry demands by organizing industrialization activities such as think tanks and forums.. Specifically, Yissum willFirst, gain a thorough understanding of the industry’s genuine needs and conduct comprehensive research into key technical barriers within specific fields, then relay these insights to researchers. This approach effectively addresses the challenge of translating scientific achievements that are disconnected from market demands.

Through this approach, Yissum has seen a substantial increase in transaction volume with industry partners. In reality, however, Yissum’s strategy is not unique; many universities and institutions both in China and abroad have had similar experiences. So why has Yissum managed to stand out?

On one hand, Yissum has a team ofMultidisciplinary, High-Caliber, and Specialized Technology Transfer Team。

It is reported that Yissum’s team members come from diverse disciplines, holding advanced degrees and possessing deep technical expertise, with the ability to address practical problems using scientific approaches. In addition, they have extensive experience working in industry startups or larger organizations, making them well-versed in intellectual property and patent protection, business negotiations, sales management, production management, financial and tax management, and corporate operations. Therefore, theyAble to identify the potential market value of an academic-stage idea。

On the other hand, Yissum serves the scientific research community and industryEstablished Multi-Channel Communication Platforms。

Currently, most universities and enterprises adopt a single, direct communication model, which must also adhere to the respective procedural requirements of both parties. This inevitably consumes considerable time and energy. However, by establishing a third-party platform, Yissum has not only expanded its channels for accessing industry insights but also enhanced the efficiency of university-enterprise communication.

Step 2: Outcome Evaluation and Patent Application

The original intent of a patent is to protect a specific technology or achievement.。

However, the majority of patents held by existing research institutions are pursued merely for the sake of obtaining grants, rather than for genuinely safeguarding research outcomes. Researchers are also largely unfamiliar with patent rights; to a significant extent, they do not understand what constitutes effective “protection.” Having learned from its previous shortcomings in intellectual property and patent management, the Hebrew University placed particular emphasis on patent protection after establishing Yissum, itsThe commercialization of achievements is also entirely patent-based.。

It is reported that Yissum provides services such as patent application for the intellectual property of researchers, and the relevant procedures are as follows:

First, researchers submit an invention disclosure.。

To prevent issues such as researchers concealing invention information to seek market monopoly status, Yissum requires researchers to first submit an application and provide formal documentation introducing the new invention.

Next, the Technical Evaluation Committee conducts technical assessments and patent applications.。

Following submission of the application, Yissum convenes a Technology Assessment Committee to evaluate whether the invention possesses significant commercial potential and to determine whether to proceed with patent filing.

Technical evaluation criteria include: 1) innovativeness; 2) market potential; 3) researchers’ willingness to apply the technology; 4) patentability; 5) feasibility of effective patent protection; and 6) availability of commercial partners.

If the application is deemed immature, researchers may revise it based on recommendations from the Technology Assessment Committee, and Yissum will conduct a re-evaluation. If the application is deemed eligible, a patent application will be filed.

In accordance with Yissum’s regulations, patent applications will undergo several rounds of review by professional patent examiners. Applications may be rejected, require amendment, or be approved; this process can take 3–5 years and involves substantial costs.

Therefore, Yissum allows researchers to first proposeProvisional Patent Application, with a one-year term and at a lower cost.

There are two advantages to doing this: first, it canProtecting Proprietary Technology, if researchers' inventions involve proprietary technology and the application may not necessarily be approved for a formal patent due to technological immaturity, filing a provisional patent application offers a simpler approval process. This allows researchers up to one year to further refine the technology until it meets the requirements for patent grant.

For pharmaceuticals, provisional patent applications can effectively protect newly discovered drug molecules or drug targets that have not yet been fully proven effective.

The second benefit is that it canIncentivize Applicants to Accelerate Research. The term of a provisional patent application is one year, which requires the applicant to complete the research and development work within this period; failure to do so will result in the inability to obtain patent rights.

If the applicant successfully completes the research within one year, the provisional application will be converted toInternational Patent Application. Finally, within one and a half years after conversion into an international patent application, the application is examined and granted by designated countries, with separate registrations required for market entry in each country.Patent Rights in Specific Countries。

As is well known, patent protection is territorial in nature. Through international patent applications, Yissum has provided robust protection for the Hebrew University’s patents against infringement in other countries. Meanwhile, it has enabled the Hebrew University to hold a substantial portfolio of international patents, thereby enhancing its global competitiveness.

Step 3: Commercial Value Conversion。

At this stage, the primary focus is on identifying commercial partners. Therefore, Yissum needs to determine whether to license its patented technology to existing companies or to spin it off into a startup. This requires Yissum to establish a set of evaluation criteria.

In fact, before determining the commercialization pathway for a given achievement, Yissum analyzesTechnological maturity, R&D and entrepreneurial capabilities of researchers, and fundraising statusandMarket Landscape of Technology Applications...and other key factors. Subsequently, they will evaluate whether the capital invested and resources mobilized are proportional to the expected profits before determining the specific pathway for technology transfer and commercialization.

For thosePossessing mature technology, extensive experience, and the capability to raise fundsresearch team,Yissum will help them establish startups.. As researchers are not adept at securing investors, operating, and managing companies, Yissum provides professional services to these startups, allowing researchers to devote more time and energy to innovation.

InBusiness InformationIn this regard, Yissum will conduct a comprehensive market analysis, develop a business plan for the new technology, and identify potential partners;Patent Licensing CertificationIn this regard, Yissum screens for companies that may be interested in a particular technology and actively promotes the technology to them.

Generally, the Hebrew UniversityRather than selling patents outright, share technology with partners through licensing.. InPromotionIn this regard, Yissum will publish an introduction to the technology on its official website and produce dedicated promotional materials for key patents. In addition, Yissum is responsible for contract management, administrative oversight, and financial matters related to technology transfer.

ForNot yet mature; further R&D is required.technology, Yissum will throughTechnology Transfer、Technology LicenseandJoint Researchand other means to promote the translation of scientific research achievements.

Benefiting from the Hebrew University of Jerusalem’s long-standing accumulation of innovative research achievements, many enterprises have chosen to establish their presence in the vicinity of the university, thereby further bridging the gap between academic research outcomes and the market. Leveraging these industrial advantages, Yissum actively seeks corporate partners for researchers, facilitating joint research initiatives funded by companies and conducted by researchers, thus enabling both parties to share the resulting innovations.

At this stage, researchers can not only earn substantial incomes but also gain rewards that transcend money, such asResources such as hard-to-obtain experimental data, computational power, clinical records, and advanced laboratory equipment。

Step 4: Signing the Agreement and Profit Distribution。

After identifying a partner and determining the mode of collaboration, Yissum also assumes responsibility for executing agreements between the Hebrew University research teams and their partners. This approach aims to help research teams avoid potential pitfalls and provides a certain level of oversight.

In terms of the most closely watched aspect—benefit distribution—Yissum has opted for a compensation model tied to final market performance. Initially, Yissum charges nothing; it waits until the technology generates sales revenue, at which point it receives 5%–10% of total sales as stipulated in the contract.

However, Yissum does not “pocket” these returns entirely; instead, it distributes them among the inventors, the Hebrew University, and the inventors’ laboratories in a 4:4:2 ratio. This undoubtedly creates a virtuous cycle.

Overall, in the process of commercializing research outcomes, Yissum’s core mission is to address the practical pain points faced by researchers. While this sounds simple in theory, it is far from easy in practice. The most immediate challenge lies in whether technology transfer offices can accurately identify which achievements hold commercialization potential, and how to maximize that potential through the most standardized transfer mechanisms.