How can you increase your startup's valuation with intellectual property during fundraising?

2 How to assess your IP portfolio

Before you pitch to investors, it’s important to assess your IP portfolio and understand its strengths and weaknesses. An IP portfolio is the collection of all the IP assets that you own or have access to, so you should conduct an IP audit to identify, document, and evaluate it. Doing so can help you align your IP with your business goals and strategy, identify any gaps, overlaps, or conflicts in your IP, determine its value and potential, protect and manage it effectively, and communicate and showcase it to investors. To value your IP, you can use cost-based, market-based, or income-based approaches; however, you should also consider the qualitative aspects of your IP such as its relevance, uniqueness, and impact.

3 How to protect your IP

Protecting your IP is essential to prevent others from copying, using, or exploiting your innovation without your permission. Registering your IP rights, such as patents, trademarks, and copyrights, can provide you with legal evidence, exclusive rights, and enforceability of your IP. However, registration can also be costly, time-consuming, and public. Therefore, you should also use other methods to protect your IP. For example, consider non-disclosure agreements (NDAs) to safeguard confidential information and trade secrets. Additionally, employment contracts and policies can clarify the ownership and obligations of employees and contractors regarding your IP. Licensing agreements can grant or obtain permissions to use or share your IP with others. And lastly, due diligence and monitoring can check for any infringement or misuse of your IP by third parties.

5 How to pitch your IP

When you pitch to investors, you should emphasize your IP and how it supports your value proposition and growth potential. You should prepare an IP pitch deck that covers what your IP is, how it fits into your business model and strategy, how you protect and manage it, how you leverage and monetize it, and the risks and opportunities associated with it. Additionally, you should be prepared to answer any questions investors may have about your IP validation, any IP disputes or challenges, the performance and impact of your IP, as well as plans to develop and improve it in the future. When presenting your IP, you should be confident, clear, concise, honest, realistic, and transparent about your IP situation and expectations.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?