Most VCs consider it a very bad idea to invest in companies doing contract research and development for the government. Government R&D is a specialized business model that’s made even more complicated by the nuances of government accounting and contracting practices. Companies that start out with government contracts have a tough time generating new business and winning proposals. And even if they do win new business, they may find that the government claims the rights to all of the intellectual property they developed while under contract.
To read the full, original article click on this link: How to turn R&D work for Uncle Sam into a real business | VentureBeat
Author: Alex Laats
