Tag: Angel Investors
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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…
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IP 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…
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Patents 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…
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Good 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…
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IP 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…
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Beware 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…
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Financing 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…
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IP 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…
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Only 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…
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Betting 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”…