4 Questions that Every Investor Asks

August 16, 20130 Comments

Entrepreneurs need to be prepared in pitching their companies to a venture capitalist by anticipating the questions they will receive. The failure to have thoughtful and reasonable answers to VC questions will decrease the likelihood of your company getting funded.

If  you are a startup business or operating business seeking funding, intellectual property will be a key to your success.  Here are 4 key question that investors will pay particular to attention to your answers:

  • What key intellectual property does the company have (patents, patents pending, copyrights, trade secrets, trademarks, domain names)?
  • What comfort do you have that the company’s intellectual property does not violate the rights of a third party?
  • How was the company’s intellectual property developed?
  • Would any prior employers of a team member have a potential claim to the company’s intellectual property?

Your intellectual property (IP) is an intangible asset your business develops over time and is the secret to driving wealth creation. Unlike hard/tangible assets, such as machinery and equipment, which depreciate over time, your intellectual assets appreciate over time as you invest more into their development.

IP extends into many formats including customer information, software source code, business models, databases, operations manuals, professional expertise and much more. It’s these additional parts of the IP that are often overlooked, and could be some of the most valuable.

 

Filed in: Licensing Strategy
Tagged with:

About the Author ()

Rand is President / CEO of Licensing Consulting Group, an intellectual property management and licensing company specializing in assisting clients in IP Management, Strategic Consulting, Acquisition of Licensing Rights, and Property Representation. Rand has licensed some of the biggest Hollywood blockbusters, including “Batman” and the “Mighty Morphin Power Rangers”, both of which generated billions of dollars in worldwide merchandise sales. He has lead various international licensing programs as both licensee and licensor, and through consulting projects focused on licensing strategy, brand development, sponsorship sales and property representation.

Leave a Reply

Back to Top