Whether you still have a high burn rate or you are financially stable, one of the most important issues for start-ups is funding.

When it’s time to approach potential investors asking for investment, you will certainly need to have your IP portfolio in prime condition, as this is one of the first things they will want to look at, especially if technology is the main part of your business.

In fact, IP can help start-ups raise finance as highlighted in a recent EPO study (Patents, trade marks and startup finance – EPO – October 2023).

How does IP help start-ups raise finance?

IP increases the odds of funding – with a 6.4 times higher likelihood of funding for start-ups that filed for patents only (EPO October 2023) and 10.2. times higher likelihood with patents and trademarks.

IP also increase the odds of exit – with a 3.2 times higher likelihood of exit for start-ups with prior patents and trademarks

Why does early investment in IP act as a signal for investors?

  • It makes value visible (IPR on public databases)
  • It strengthens first-movers advantage through exclusivity
  • It confirms the technical credibility of the start-up and the novelty of the technology
  • IP assets have value in the context of IP-based lending and for recovery in an insolvency situation

Reaching an Investment Ready IP Position

Reaching an investment ready IP position requires planning and preparation to:

  • Maximise the impact of the investment pitch
  • Avoid delays and potential deal-breakers during the investor DD

Dehns Consulting can make sure that your IP portfolio is in the best possible shape for close examination and scrutiny by the investor or their advisors (which may include patent attorneys!). Having worked on both sides of the fence, advising both investors and start-ups down the years, we know what investors are looking for in an IP portfolio and can help make sure your portfolio is investment ready.
 
 
Dehns IP Consulting provides entrepreneurs with pragmatic support before and during the investment process by:

  • Conducting an Investment IP Readiness Assessment – through a questionnaire and workshop to minimise disruption
  • Working with the company to correct issues and fill the gaps – with prioritisation of required actions based on criticality and budget

Communicating your IP story for investors

We can also help with the preparation of slides for your investors deck in order to position IP as a value driver and maximise the impact of your IP story. Using IP analytics to benchmark your patent portfolio and mapping all your IP assets, we can help explain how your IP is building a moat protecting your competitive advantages.

We can also support you when preparing the relevant sections in grant and funding applications. It is common for funding applications to fail because start-ups don’t spend enough time on the IP section.

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