The Company as the Product

Building a company that can be sold is building a different product for a different customer. Serving two masters – but they are compatible. The first master is the customer who buys your product, and the second master is the one who buys your company. Most entrepreneurs lose sight of the fact that the acquiring…

Read More

Nobody Buys Technology – They Buy Solutions

Nobody cares about your technology. Entrepreneurs love to talk about their technology. Endlessly. Ad nauseam. And when it’s time to raise money or sell the company, they make the same mistake: they lead with the tech. But here’s the truth: nobody buys technology. Not your customer. Not your acquirer. Not your investor. They buy a…

Read More

When Your Capital Strategy Kills Your Commercial Value

How “licensing-only” businesses can get caught in the angel/venture minefield. Let’s walk through the math that every angel investor does. This company is raising money at a 15 million dollar post-money valuation. For us as early-stage investors to justify that investment, we expect a 10x return. That means this company needs to exit at 150…

Read More

Bad Advice – Non-publication Requests for Patents

How incompetent patent attorneys hide their work product from public view. Occasionally, I run into patents where the patent attorney talks the client into a non-publication request. This is always a bad thing. Non-publication requests keep your patent secret until the patent has been examined. The patent is confidential throughout the examination process, and only…

Read More

Bad Behavior By Angel Groups -“Due Diligence”

Due diligence is supposed to help investors and the entrepreneurs, but many times it is a charade. I am a member of several angel investor groups, and I am intimately familiar with many more. In general, angel investor groups can be a positive force for good: they teach entrepreneurs and angels how the investing system…

Read More

Gullible Angel Investors and Provisional Patent Applications

Last time, we discussed the provisional patent application hoax perpetuated by patent attorneys. In this post, we look at the scam from the inventor/entrepreneur side. Many so-called inventors/entrepreneurs like to file their own provisional patent applications, then shop these to gullible angel investors, hoping that the angel investors will bite. The “inventor” is hoping that…

Read More

The Provisional Patent Hoax

One of the greatest hoaxes in our industry is the notion that provisional patent applications are a good thing. They are not. I am always amazed how some hoaxes are told over and over to the point where people actually believe them. When they find out that the hoax was not true, their confidence is…

Read More