Posts Tagged ‘Investor Due Diligence’

Startup Fundraising – Pluses and Minuses

From bootstrapping to venture funds, there are many different avenues. Fundraising for a startup company often takes more skill, talent, and innovation than creating the product or service you want to deliver. I deal with IP-centric businesses where patents are a core asset, and that implies that the entrepreneur is creative, innovative, and tries new…

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How to Spot Bad Patents

Investment-Grade Patents represent only a small sliver of the patent universe. Their value comes from a huge amount of research and thought. However, bad patents are easy to spot. These less-than-optimal patents have certain characteristics that can easily be identified by anyone: the inventor, the investor, or anyone in litigation.  Use this as a first…

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IP Due Diligence in Two Questions

There are two questions to ask every time you are dealing with patents: Can you tell if someone infringes? How hard is it to design around your patent? With these two questions, you are 90% of the way there on IP due diligence. Here is my presentation to Band of Angels in October, 2020.

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IP due diligence for startups

Due diligence is essential for any business deal, and IP due diligence is shockingly left out of the equation for most angel investors and venture capital investors. IP is left out of most due diligence efforts for good reason: most patents are worthless. This patent due diligence checklist helps anyone evaluate IP and patents –…

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How to Find a Realistic Patent Value

A realistic patent value can be determined using many of the same techniques used to value businesses. However, it all depends on whether someone is actively copying your invention. Patent value is tricky Use standard business valuation techniques to value patents Pricing patents using Options Pricing techniques Special cases where patent value is huge What…

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Why Marketing Is More Important than Patents

Entrepreneurs have been fed this lie that the first thing they need to do is get a patent, then work on the business. This is a bad strategy. As an investor who finances IP for startups, I want some data to support the investment in patents. The best strategy is to do the marketing first,…

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1% Patent – 99% Execution

As we all know, business is usually 10% idea and 90% execution.  The successful companies rarely have the single best product on the market, but they do have successful execution. Startup companies – and any business with a new product – spend more time doing product market fit than anything else.  Figuring out what the…

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Patents Help Sell Your Company

When building a patent portfolio with the intent to sell a company, the main audience is not potential infringers, but the acquiring company. Depending on the situation, the acquiring company may have any of several different reasons for the acquisition. For example, the acquiring company may be looking to add an existing product to its product…

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