Adam Bulakowski, Principal Partner, is the Author of "The VC’s playbook: Diligence essentials for technology-based IP"  

POSTED BY ipCG Team AT 12:38 P.M. March 24, 2017

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Below is an excerpt from the February, 2017 white paper. Read the full paper here.

Summary

VC investments can improve monetization options and mitigate risk when diligence considers IP assets from a holistic business perspective, beyond the traditional legal opinions.

When doing venture-stage diligence on a candidate’s IP rights, fundamental business questions should include:

Yes, legal diligence should also inform investment decisions, with tests like ownership, pending third-party demands, assertion entity risk, and freedom-to-operate. But those legal opinions don’t answer the above questions.

The following steps of IP diligence go beyond the legal checkboxes to inform economic decision-making:

Across most VC-intensive sectors, candidate investments require higher quality and more focused IP rights to improve the likelihood of returns. With this broader, business-oriented perspective of IP diligence, investors can mitigate and/or diversify their risk. In addition, post-investment, they will have a stronger base of IP rights from which to capture opportunities.


TAGS: Adam Bulakowski | ipCG Team | Disruption | Process | Strategy | Valuation
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