Posts Tagged ‘Angel Investors’
Risks of Investing in Government-Sponsored Research
“March-in” rights under 37 CFR 401.6 allow the government to re-possess a patent using a very arbitrary process. One reason NOT to invest in startups based on government-sponsored research, including patents from universities. Inventors can get patents on government-sponsored research, and may university patents have a statement in the text of the patent that states…
Read MoreIP Theft – Starting that “Side Project”
“He doesn’t own my brain” – Oh, yes he does. Doing the entrepreneurial gig is hard. There are countless barriers and endless hurdles to overcome, and many entrepreneurs relentlessly power through them. But stealing IP is never, ever, appropriate. Here’s the fact pattern: Entrepreneur starts a company and takes on investors. One of the investors…
Read MorePatents on Vision vs Patents on Inventions
There is a big difference between an entrepreneur’s vision and the entrepreneur’s inventions. Often the entrepreneur (and their investors) confuse the two. Entrepreneurs are fond of having big, bold visions of the future. A future of self-driving cars or virtual reality universes or DNA-based pharmaceuticals that fix every medical problem or hyperloop transport or whatever. …
Read MoreGood Stewards of Capital
The single most important thing you need to show an angel investor. Angel investors hear countless pitches from all kinds of entrepreneurs, some of which are extraordinarily capable scientists and visionaries who have fantastic technical solutions to a problem. Many times, these entrepreneurs stumble when trying to explain the business. Nobody Cares About the Technology…
Read MoreIP Theft by an “Angel” Investor
An angry “angel” investor commits federal crimes by stealing IP. How an investor stole intellectual property from a portfolio company. This is a true story. Sadly, predatory actions by so-called “angel” investors are more common than it should be. An angel investor has a portfolio of maybe a dozen startup companies. This investor takes a…
Read MoreBeware of (some) Angel Group’s Due Diligence
Not all “due diligence” is created equal. There are hundreds of angel groups all across the country, and each one has a different flavor. Some are occasional “dinner clubs” fashioned after Shark Tank, where a couple startups pitch and investors might make an investment on the spot. Others are extraordinarily sophisticated in their screening, mentoring,…
Read MoreFinancing patents for pre-angel or pre-seed startups
Good patents only come from a good business BlueIron provides financing for patents – but only when the patent makes good business sense. When we finance patents, we do extensive due diligence to make sure the patents will have value before our investment. We have skin in the game. In this article, we talk about…
Read MoreIP Due Diligence Checklist
Due diligence is essential for any business deal, and IP due diligence[1] is shockingly left out of the equation for most angel investors and venture capital investors. Due diligence is hard work. Doing it well will get your hands dirty. Introduction to IP Due Diligence Any due diligence exercise, especially IP due diligence, involves turning…
Read MoreOnly Gullible Angel Investors fall for Provisional Patents
Provisional patent[1] applications are the worst things for angel investors. What is a provisional patent application? A provisional patent application, sometimes called a “provisional” or “PPA,” is the single worst thing a startup can do to “protect” themselves. And angel investors have been led to believe that this is a good strategy. I assure you,…
Read MoreBetting on the Home Run
Angel investing requires analyzing the ability of the entrepreneur to make their business happen. Entrepreneurs who bet everything on a single home run are very poor investments. It is much better to find the “grinder” startup who is willing to do the hard work. Patrick Joseph Moran, Chicago NL baseball player, standing at home plate…
Read More