An Investor's view of Intellectual Property


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Presentation from a technology venture capital provider to a business audience about their view of intellectual property

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An Investor's view of Intellectual Property

  1. 1. An Investor’s view of IPEdward French, 19th November 2008
  2. 2. Contents• Background• Making money in IP• The value in IP• Costs in IP• Selling IP 2
  3. 3. Enterprise Ventures FundManager Funds 3x Technology Dev Cap Funds Lancashire Funds: ~£40m £10->25m Small Business £100k-£1.4m £100k-£2m £10k-£300k 3
  4. 4. Our experience• Backed over 40 IP-based companies Pen computing Social mobile game• Ranging from software...webservices...materials EDA tools science... Etc. Diagnostic webservice• More than half have filed patents... Rest Mobile phone UI copyright, designright, registered design. Enterprise Mashups E-learning• Licensed dozens of technologies E-tail – Tried to license dozens more! 4
  5. 5. Making Money in IPRecipe for riches: 1. You can do some cool work 2. You generate some strong IP that has value 3. You sell this value to a “LargeCo” and they pay you enough to cover your costs and make a nice profit for the risk. 4. Retire somewhere sunny 5
  6. 6. Value in IP• Why do large companies acquire IP ? 1. Because the patent means they need your permission 6
  7. 7. Value in IP• Why do large companies acquire IP ? – Because they’re worried you’ll sue them – Because they couldn’t have built it themselves without- applies to stuff that’s hard more than clever – Because they can use it as a weapon against competitors- important only in an IP landscape – Because it comes with other things.....? 7
  8. 8. Value in IPIP RankingPatent on a process for making sunscreen more cheaplyNew logo design for a beverage companyA web 2.0 site with 100,000 registered usersA more beautiful and practical arrangement of a mobilephone protected with a registered designA recipe for a common beverage 8
  9. 9. How valuable is a patent? 4,000,000 patents 9
  10. 10. Costs in IP• Worldwide patents £x00,000• Software patents/Business method patents – cheaper- but US only• Other stuff is helpful• Advice is patchy 10
  11. 11. Selling IP• Trick is not to! Not this... But this... Technology Reference design including the technology Idea Product Website concept User-base 11
  12. 12. Conclusion• IP on its own usually has little value• Venture investors care about IP: but the good ones care mainly about the IP story and how it could drive exit• IP shouldn’t run strategy, but you need an IP Strategy• Learn more: & 12
  13. 13. Contact Details Edward French Email Edward.french@enterprise- Phone 07966 347407 Yuuguu ID Website Blog 13