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The world's premier IP innovation consultancy. Delivering end-to-end intellectual property services since 1998.

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  • IP Business Assessment
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  • Targeted Patent Search
  • IP Strategy Consulting
  • Invention Capture

More Services

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4 Carmichael Street, Suite 111 PMB 145, Essex, VT 05452

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March 24, 2017ipCG Team

The VC’s playbook: Diligence essentials for technology-based IP

A VC playbook for IP due diligence. Five business questions beyond legal review that reveal the real value of a startup’s technology and patents.

Blog post image

When patent value matters

Is your patent portfolio changing company value?

If this market matters to your business, start with a directional screen of the monetization opportunity. For investor, transaction, or board use, ipCG can scope a formal valuation around the assets and decision.

Value my patentsSee formal valuation support

The calculator is a screening tool, not a formal patent valuation.

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

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:

  • What is the intrinsic value of current and in-process IP?
  • Does this IP provide an advantage in disrupting large market(s)?
  • How and when can we realize the value given the current and projected environment?
  • How do we balance investment in IP versus product development or marketing?

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.

Running diligence on a technology investment? ipCG’s IP valuation work answers the business questions legal review cannot, or start with a quick portfolio value screen.

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

  • Strategy: What are the business issues and is there a basic IP strategy that addresses these opportunities and threats?
  • Assets: What is the inventory of technical IP, including patents, trade secrets, software?
  • Alignment: How do the existing assets align with strategy, particularly the current and future products?
  • Landscape: How are the assets positioned relative to others?
  • Optionality: Could the IP extend to applications beyond the core business?

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.

Related reading

  • Valuation of Public Equities, Including Alphabet, Amazon, Apple: Capital Market Pricing of Opaque Intangible Assets
  • Maximizing Value: A Comprehensive Guide to IP Due Diligence
  • Understanding the Valuation of Tech Patents
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IP strategy in your inbox

New IP strategy articles and Invent Anything podcast episodes, straight to your inbox.

ipCapital Group

The world's premier IP innovation consultancy. Delivering end-to-end intellectual property services since 1998.

Services

  • IP Business Assessment
  • IP Landscape Analysis & Analytics
  • Targeted Patent Search
  • IP Strategy Consulting
  • Invention Capture

More Services

  • Directed Invention
  • ipNavigation
  • Invent On Top
  • Invention Disclosures
  • Trade Secret Programs
  • Patent Valuation
  • Portfolio Optimization & Budgeting
  • Patent Monetization
  • IP Story & Portfolio Narrative

Tools

  • All Tools
  • Hugh AI
  • Patent Valuation Calculator
  • Patent Cost Calculator
  • Provisional Patent Readiness Checklist

Company

  • About
  • Team
  • Blog
  • Answers
  • Pricing
  • Contact
Privacy Policy·Terms & Conditions·AI Policy

© 2026 ipCapital Group, Inc. All rights reserved.

4 Carmichael Street, Suite 111 PMB 145, Essex, VT 05452