What Investors Look for in a Startup's Patent Portfolio
Investors assess more than revenue and market growth when deciding whether to invest in a startup. For technology driven businesses, intellectual property can play an important role in the investment decision. A startup may have a promising product, skilled team and strong market opportunity. However, if competitors can easily copy its core technology, the business may face significant challenges as it grows. Patents can help address this risk. They can provide legal protection for qualifying inventions and create barriers to competitors entering a particular technological space. For investors, however, simply having patents is not enough. They want to understand the quality, ownership, commercial relevance and potential risks associated with a startup's patent portfolio. A well managed portfolio can strengthen an investment proposition. An incomplete or poorly documented portfolio can raise concerns during due diligence. Why Investors Examine Patent Portfolios Investors are gene...