Trigger warning: If you’re a tech commercializer or ecosystem supporter who prefers to focus only on the rainbows, puppy dogs, and ice cream aspects of tech commercialization, you might want to skip this one! This piece is intended to encourage brutal honesty and prepare first-time tech commercializers for the inevitable challenges ahead. But it is not meant to scare you off! If this were easy, everyone would be doing it. The choice to tackle the hard stuff is what sets successful innovators apart from the coulda-woulda-shoulda crowd.

Where to Start

Technology commercialization is a vast topic—far too broad to cover comprehensively in a single blog post. However, let’s start by clarifying what we mean by “commercialization,” as people use the term differently in various contexts. For our purposes, let’s define commercialization as monetization + customer solution. In other words, we’re excluding “buy to bury” strategies—where a company acquires a technology just to eliminate competition. We assume that commercialization means getting a solution into customers’ hands, not just selling assets to a buyer who intends to shelve the technology.

Additionally, while the term “transition” is often used in the defense sector to describe commercialization for DoD customers, whereas “commercialization” is used for non-DoD markets, we won’t make that distinction here. For this discussion, it’s all “commercialization.”

No Single Method

There are many approaches to commercializing a technology, depending on whether it’s a physical product, software, a service, or some combination thereof. While those details matter, there are also higher-level considerations that apply broadly to commercialization. That’s where we’ll focus.

Let’s assume you already have something—not just an idea, but a developed technology that’s in progress. You want to get it over the finish line. Now what? Here are some key factors to consider, along with common pitfalls to avoid.

Begin with the End in Mind

Like 99% of tech commercializers, you are not in full control of how this will play out. But it helps to have a clear intention, preference, or understanding of the most likely path to commercialization. Your options include licensing, asset sales, joint ventures, spinouts, or internal operations.

If your path involves a joint venture, spinout, or internal operation, you also need a strategy for supply chain management (e.g., in-house manufacturing, outsourcing, or toll manufacturing) and market access (e.g., direct sales, distributors, exclusive partnerships). While you must remain flexible and open to pivots, having a preliminary commercialization roadmap can help shape your strategy in meaningful ways.

Know What You Have and Where You Stand—For Real

Tech developers love their technology. In our experience, they almost always believe their tech is much closer to commercialization than it actually is. One reason for this is that commercialization readiness has at least three dimensions:

1. Technology Readiness Level (TRL) – Most tech developers are familiar with this concept. However, it’s crucial to conduct a sober assessment based on actual results, not what the technology could or might do with more time and money.
2. Manufacturing Readiness Level (MRL) – This isn’t just about being able to produce at scale; it’s about reliable production at a cost of goods that allows for a viable gross margin. And if you think outsourcing solves all your MRL problems, think again—no supplier will ever care about your product as much as you do.
3. Business Readiness Level (BRL) – This includes customer discovery, market characterization, capital needs assessment, and intellectual property (IP) protection (patents, trademarks, copyrights, trade secrets).

A clear-eyed assessment of all three elements—TRL, MRL, and BRL—is essential before embarking on a commercialization effort. Failure to face reality in these areas is the biggest obstacle to success. If you’re a tech developer reading this, take heed: Commercialization will take far more time, effort, and money than you think! And developing the technology is often the easiest part.

The Most Likely Point of Failure: BRL

The most common reason commercialization efforts crash and burn is poor product-market fit at a viable price point—even when licensing or asset sales are the goal. This failure usually stems from:

1. Flawed customer discovery – Either it wasn’t deep or broad enough, asked the wrong questions, or (most commonly) only listened to the feedback that confirmed pre-existing biases while ignoring inconvenient truths.
2. Manufacturing cost issues – If your cost of goods is too high, you’ll have to price yourself out of the market just to maintain a decent gross margin.

Money, Money, Money

Another frequent stumbling block is funding. Many tech developers rely on non-dilutive grants, personal savings, retained earnings, loans, or investor capital to get started. By the time they seek outside help, they’re often exhausted and financially stretched thin. The remaining commercialization gap can feel overwhelming, but it can be navigated. Funding sources generally fall into four categories:

1. Non-dilutive funding – While no money is truly “free,” there are grants and non-dilutive funding sources worth exploring at the federal, state, local, foundation, and corporate levels.
2. Personal or business funds – This includes retained earnings from an existing profitable business or personal financial reserves (if they haven’t already been depleted).
3. Secured loans – Bank loans, SBA-backed financing, and business development loans may be options, but they often come with strict conditions and asset-backed risks.
4. Equity investment – Angel investors, venture capitalists, family offices, and private equity players operate here. Many tech developers drastically underestimate how long it takes to secure investment. If you’ll need investor capital, start preparing 6-9 months in advance to get your financials, commercialization strategy, and pitch in order.

Persistence Pays—Most of the Time

Two final thoughts as you push forward:

1. Nothing commercializes exactly as planned. Pivots are part of the process. The only way commercialization stops is if you stop.
2. Sometimes, stopping is the right call. Some technologies aren’t destined for commercialization—whether due to timing, market conditions, or fundamental flaws. Knowing when to pivot vs. persist is a critical skill only you can develop.

Did we make this sound too daunting? The goal isn’t to discourage you but to prepare you for the bumps and bruises ahead. Facing these challenges head-on will maximize your odds of success.

Good luck!

About Rushlight Ventures:

Rushlight Ventures is a pioneering venture studio that specializes in the monetization of defense and dual-use intellectual property created by Cornerstone Research Group and additional small and mid-sized businesses conducting federally sponsored research. With a proven track record of measurable success, Rushlight Ventures is dedicated to advancing innovation, fostering economic value, and nurturing growth within the business ecosystem. Rushlight Ventures is a Rushlight Assets company.

Contact us today to find out if Rushlight Ventures would be a good partner for your tech.