Leveraging IP to Raise Funding and Improve Your Valuations in a Bear Market_2 pot

© 2001, ipCapital Group, Inc. All Rights Reserved. 22 www.ipcapitalgroup.com IP Position in Ideas to Reality IP Position in Ideas to Reality IP Wave Companies Leveraging means understanding the “Position” of IP in the flow of ideas to reality! IP Wave Companies Leveraging means understanding the “Position” of IP in the flow of ideas to reality! © 2001, ipCapital Group, Inc. All Rights Reserved. 23 www.ipcapitalgroup.com IP Rings – Across all areas IP Rings – Across all areas Build your IP in surrounding Rings to raise your value IP.COM © 2001, ipCapital Group, Inc. All Rights Reserved. 24 www.ipcapitalgroup.com Very New Markets Very New Markets Strategy dictates the size of your IP Rings to raise your value © 2001, ipCapital Group, Inc. All Rights Reserved. 25 www.ipcapitalgroup.com Improvement Markets Improvement Markets Strategy dictates the size of your IP Rings to raise your value IP.COM © 2001, ipCapital Group, Inc. All Rights Reserved. 26 www.ipcapitalgroup.com IP is Global – take advantage of the laws GNP vs. IP Strength of IP Laws Size of GNP of a Country Value of Intellectual Property Value of Intellectual Property DEVELOPING COUNTRIES USA © 2001, ipCapital Group, Inc. All Rights Reserved. 27 www.ipcapitalgroup.com IP is related to your Market Cap Market Cap vs. IP: Where are you? # of Patents + Execution Market Cap of Company LOW TECH INDUSTRY HIGH TECH INDUSTRIES Value of Intellectual Property Value of Intellectual Property © 2001, ipCapital Group, Inc. All Rights Reserved. 28 www.ipcapitalgroup.com Mergers & Acquisitions Valuation vs. IP B M K 0 1 2 3 4 5 6 7 $ For Merger # of Patents Value of Intellectual Property Value of Intellectual Property © 2001, ipCapital Group, Inc. All Rights Reserved. 29 www.ipcapitalgroup.com Venture financing is related to IP IP enhances upside “Own your space” IP reduces downside risk Creates barrier for entry in market MM M K $ For Venture Depth of your IP Story Value of Intellectual Property Value of Intellectual Property © 2001, ipCapital Group, Inc. All Rights Reserved. 30 www.ipcapitalgroup.com Raising Money Angel Rounds – IP is the almost only tangible asset First/Second Rounds – IP Valuation Story shows a serious business especially if IP story is Comprehensive Related to the business plan IPO – Stock market wants insurance Value of Intellectual Property Value of Intellectual Property © 2001, ipCapital Group, Inc. All Rights Reserved. 31 www.ipcapitalgroup.com Maximize the Defensive Value of IP Maximize the Defensive Value of IP Legal Lawsuits cost $$ Lawsuits delay product introduction Lawsuit impact company stock value Market Share Kicked out of markets – Kodak & Polaroid People People switch companies – unprotected IP moves with them Processes Can’t compete against competitors who have systematically owned the space [...]... Owning your IP space enables you to “prove” your business model and technologies Owning your IP space enables you to “prove” your business model and technologies “Proving” your business model and technologies attracts Investors “Proving” your business model and technologies attracts Investors © 2001, ipCapital Group, Inc All Rights Reserved www.ipcapitalgroup.com 39 Increasing Valuation Situation A. .. Invention (IP) 34 Connect Innovation vs Invention (IP) Human Capital Human Capital IP Products Innovation © 2001, ipCapital Group, Inc All Rights Reserved www.ipcapitalgroup.com Invention (IP) 35 Protected InnovationSM Human Capital Human Capital Products With IP ipCapital SystemSM Products Innovation © 2001, ipCapital Group, Inc All Rights Reserved www.ipcapitalgroup.com Invention (IP) 36 The ipCapital SystemSM... company and invites ipCapital Group to capture its IP ipCapital Group Insight: ipCapital • • “Packaging” your IP story to supplement traditional valuation methods strengthens your “Packaging” your IP story to supplement traditional valuation methods strengthens your negotiating position negotiating position © 2001, ipCapital Group, Inc All Rights Reserved www.ipcapitalgroup.com 40 SM SM ipDue Diligence...Protected InnovationSM © 2001, ipCapital Group, Inc All Rights Reserved www.ipcapitalgroup.com 32 Connect Innovation vs Invention (IP) Human Capital Products Innovation © 2001, ipCapital Group, Inc All Rights Reserved www.ipcapitalgroup.com 33 Connect Innovation vs Invention (IP) Human Capital Human Capital IP Products Innovation © 2001, ipCapital Group, Inc All Rights Reserved www.ipcapitalgroup.com Invention... $25M in funding The subsidiary now has a strategy for managing and further developing its intellectual property Having proven its business model and technology, the parent company is preparing to apply its core technologies to several new spin-offs in other fields ipCapital Group continues to work with the company and its subsidiary to build their ipPortfolios ipCapital Group Insight: ipCapital • •... produces 25 ipDisclosure™ documents for the subsidiary ipCapital Group also creates an ipLandscapeSM, ipAnalyticsSM, ipStrategySM and ipValuation StorySM for the subsidiary Outcome ipCapital Group writes up 24 of the 25 ipDisclosures ™ as ipAdvanced Disclosures ™, which help the subsidiary’s patent counsel to file patent applications quickly The subsidiary uses the ipValuation StorySM to help raise a second... exchanges that they had with you I look forward to working with you again in the near future.” Thomas Patterson Weston Presidio Capital April 9, 2001 © 2001, ipCapital Group, Inc All Rights Reserved www.ipcapitalgroup.com 41 Actions to take - Company Perform and immediate ipDue DiligenceSM to know what you have Create the new IP you need to fill the holes in your IP and to position your future markets... Testimonial “I was very pleased with the approach, timeliness, and substance of the work you did to support our due diligence with regards to intellectual property You provided a high level summary in a matter of days and followed that up with a more detailed report describing approach and findings with a couple of days after that Your work was informative and very helpful I also know that the Company enjoyed... Based on the ipDisclosures, the startup’s attorney prepares and files 25 patent applications ipCapital Group also develops the ipValuation Story to enable the startup to demonstrate its true value to its potential buyers Outcome Within 18 months of ipCapital Group’s initial services, the startup is purchased for $278 million – an increase in value of $248 million from the startup’s pre-purchase valuation... five patents on its core technologies, they engage ipCapital Group to conduct the complete suite of ipCapital SystemSM services so as to fully develop and exploit the value of their existing inventions ipCapital Group performs an ipScanSM and captures 50 inventions We also scan one of the company’s subsidiaries and identify an additional 56 inventions ipCapital Group interviews the inventors and produces . Reserved. 23 www.ipcapitalgroup.com IP Rings – Across all areas IP Rings – Across all areas Build your IP in surrounding Rings to raise your value IP. COM © 20 01, ipCapital Group, Inc. All Rights. © 20 01, ipCapital Group, Inc. All Rights Reserved. 22 www.ipcapitalgroup.com IP Position in Ideas to Reality IP Position in Ideas to Reality IP Wave Companies Leveraging means understanding. Group interviews the inventors and produces 25 ipDisclosure™ documents for the subsidiary. ipCapital Group also creates an ipLandscape SM , ipAnalytics SM , ipStrategy SM and ipValuation Story SM for