IdeasPatch Designed to fund patent applications for start-ups & smeS

Our customers...

  • The capital resources needed to set up a business are reducing all the time… and even if you use machinery; you generally make the money from the thinking behind it” says Andrew Mullinger, co-founder of Funding Circle.
  • Firms able to capatalise on intellectual property and innovate have access to tremendous growth opportunities. In fact, according to one study, there are 74% more intangible assets on the balance sheet of 'high growth' firms than 'non-high growth' firms (BIC, 2013).
  • But can start-ups and SMEs maximise on their 'ideas currency'? Patents are an important tool and will be the focus of this presentation.
Patents are a key tool for business innovation..
  • Patents confer the right to take action against anyone who makes uses or sells specific forms of intellectual property, without your permission.
  • Beyond that, patents provide businesses with opportunities to share knowledge, demonstrate technical leadership, ensure freedom to operate and improve negotiation positions. Well positioned patents can command considerable valuations and significantly improve the business in question.
  • However, start-ups and SMEs have different requirements to bigger companies, so it is important to get the right approach at the outset.
  • The costs involved in patenting can be considerable, especially for start-ups and SMEs. Patents can cost on average between £7,000 - £40,000 to develop (depending on scope).

The key benefits of patents..

1. Investment..

Investors look for innovative businesses with well defined intellectual property
  • Investors want to understand the extent to which a business ensures its freedom to operate, establishes certain barriers-to-entry and meets a real market need.
  • The main barrier smaller businesses face is asymmetric information – namely they have better information about the business, and the likelihood of success, than potential investors.
  • Patents can overcome this with an ability to convert idiosyncratic inventions into a standardised format with a known set of technical and commercial qualities.
  • Once investors have confidence in the technical and commercial aspects of an invention, the likelihood of investment increases.

2. Protection

The protection of ideas goes beyond infringement concerns towards helping form the basis of a business plan
  • Patents grant exclusive operating rights to owners, protecting the source of income.
  • A patent provides the economic confidence to invest in research and development as there is assurance in the exclusivity of results.
  • A patent creates operating room for a company, increasing the quality of revenues and helping facilitate a 'high-margin' pricing model.

3. Growth..

Patent licenses can allow firms to create and develop additional revenue sources
  • Patents enable transfer of technologies, via licenses, to third parties, who subsequently invest their own capital in production; meaning firms are able to create – and control – additional end-market delivery channels.
  • License opportunities are strategically important when it comes to reaching out across divergent markets, without compromising on branding. Licenses enable a manufacture to build a high quality brand, via its own channels; while using third parties to secure a stake in low cost markets.

4. Leverage..

Patents can help unlock unexpected opportunities for business success
  • Companies acquire patents or even whole other companies for the strategic leverage it provides...
  • Patented technologies are often one of the main reasons behind high profile acquisitions. For example, the acquisition of UK based software company SwiftKey by Microsoft for $250m in 2016.
  • Larger companies in litigation disputes with competitors often go on the acquisition trail for patents owned by firms in potential infringement. These assets may be unrelated to the business but have value purely because the competitor is in infringement.

We have the tools to get you started..

"IdeasPatch is unique platform designed to fund the full cost of patent applications for start-ups and SMEs, whilst offering investors a share in successful innovations. The funding solution, tailored towards the need of start-ups and SMEs, creates a number of advantages for firms that want to innovate and create wealth."

  1. Customers upload the patent application and business plan. Applications are subject to review by our team of business analysts and attorneys so make sure to check out the guidance and support provided.
  2. Once approved, the application is promoted on the platform and investors are able to pledge money to fund its development.
  3. Once funding is completed, the application is transferred into an SPV set-up to fund the process. Full commercial rights are licensed back to the business and investors receive a share in the commercial success of the invention.
Key benefits of IdeasPatch to start-ups and SMEs
  • IdeasPatch funds the entire application process, with an initial £500 search fee returned on successful completion of the fundraise.
  • IdeasPatch builds knowledge and awareness around the entire IP portfolio, so businesses can plan and execute innovation from start to finish.
  • The patent is held in a separate special purpose vehicle (SPV), meaning businesses can exert full control over the asset, without long term obligations or commitments.

Our license model..

The IdeasPatch license model...
  1. The business has full control over the asset - retaining the ability to license and sub-contract various elements of the patent rights should it wish to do so.
  2. Should the business itself receive investment or become the target of an acquisition, the patent can be quickly and effectively reincorporated into the balance sheet, for a fixed amount.
  3. The assets themselves are held in separate entities, meaning the potential for litigation disputes is much reduced (claimants cannot win control of the asset).
  4. IdeasPatch provides start-ups and SMEs with advice and support when it comes to using the patent; as well as insurance cover that ensures access to the funds necessary to enforce and litigate, should you need to.

Watch our video...

Visit our Inventor Portal and begin your innovation journey today..

enquiries@ideaspatch.co.uk

Created By
James Dowler
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