Patents: An Imperfect System

The system is arbitrary, but it works. And it is unlikely to change. Some technologies just are not suitable for patents. The patent system is a clunky, one-size-fits-all system.  It does not work for every invention or every industry, but the patent system as we know it has existed for over two centuries and industry…

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Printing Money and the Shiny New Toy

What drives the entrepreneur may be more complicated than what it seems… For many entrepreneurs, getting to revenue is not “success”, it can be a let down. I see this pattern over and over: an entrepreneur has a product that quickly makes some money, but they get distracted with a ‘new’ and ‘better’ idea. They…

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You are not a tech entrepreneur.

Real entrepreneurs focus on the solutions they deliver, not the mechanism. There are countless industries where technology can improve things. Most of these industries are bland, run-of-the-mill industries that deliver services. It may be plumbing, pest control, or even pumping gas at a convenience store. These benign, everyday businesses focus on delivering some product or…

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This product is great…for someone else.

The kiss of death. Entrepreneurs are constantly testing out their messaging.  They are constantly pitching to their family and friends, and they are always prepared to pitch to investors. An entrepreneur’s pitch usually starts out with the problem in the marketplace, describes a ginormous total addressable market, then says how they are going to solve…

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Assignment Due Diligence: Unassigned Assets

Spotting bad behavior in startup companies. It is heartbreaking to see bad behavior by ‘inventors’ and their startup companies, but it occurs over and over again. Let this lesson be an example of the things you need to check anytime you are doing due diligence on an early stage company. First pass at due diligence…

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Voice of the Customer

The only metric of patent value – and business in general. Our business is to loan money using patents as collateral. My most frequent question: How do I put a value on patents? It all comes down to the voice of the customer. If I can capture the reason why someone bought your product –…

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Showing Up and the Green Beans

My mantra for grinding out the day to day. At coffee the other day, someone said that showing up on time was the lowest cost, easiest way to get off to a good start. I have always believed in the simple mantra of “show up.” The mantra of “show up” is really about putting in…

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Patent Attorneys Do Not Live with Their Mistakes

The Feedback Problem in Patent Law. Patent attorneys typically have zero feedback about the quality of their work product. This is an inherent weakness of the whole patent system. The attorneys do not have to live with their mistakes, because patent litigation and patent transactions happen long after their work product has ended. The Long…

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Due Diligence and IP Valuation Webinar

The Angel Capital Association hosted a webinar on Due Diligence and IP Valuation. In this webinar, I discussed an IP-backed loan for Ivani, who has an extensive IP portfolio. Note that this is a public version of our analysis of Ivani’s portfolio. Here’s the complete deck for download. We have an investor-specific due diligence package…

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IP-Backed Lending In Asia

Intellectual property-backed lending, particularly patent-backed lending, has been growing in Asia, particularly China and Korea. Both countries have made extensive efforts to use IP as a business resource for growing their economies. Maybe the US can use part of this playbook? China’s IP Emphasis is a Huge Asset to SMEs Seeking Financing. $67B in loans…

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