R&D: Risks and Financial needs
Basic Research Public Support Grants, incentives,
scholarshipsDiscoveryInvention
Applied research Public and private partnerships
Equity (BA, seed finance), Convertible
loans, guarantee schemes
Patenting and licensingPrototyping
Industrialization Private Intervention VC, IPO
Risk Level
Innovative Companies:
• do not have out a sound track record
• need years before generating a positive cash flow (no self-financing)
• their Business activity not understandable
• could not provide guarantees
• require a small amount of money
Traditional Financial tools Vs Innovative companies
INNOVATIVE COMPANIES ARE NOT APPEALING FOR BANKS!
Time
Capital ($)
Needs
START-UP FINANCING
SEED FINANCING
EARLY STAGE FINANCING
EXPANSION FINANCING
Company Growth
FIRST STAGE FINANCING
PRE-SEED FINANCING
Finance for Innovation, BA
VENTURE CAPITAL
The financial gapEQ
UTY
GA
P
…But what are investors looking for?• Balanced & committed Management
Team
• High growth potentials
• Sustainable Business Model
• Suitable strategies: with deliverable goals
• A clear way out strategy …
IP as added value, Why?
•Legally protected
•Able to create income
•Competitive Advantage
•Can be evaluated
•Can reduce “valley of death” time and size
IP & Investor needsInvestors have the following concerns:
• freedom to operate PA report • possibility for an international coverage
• clear ownership status facilitating a well established exploitation strategy
• barriers to entry
Case A:Patent owned by the company (and not the inventor)World patent Protection of both Product and ProcessVarious fields of applicationsProject independent by original research team (testing phase)
But …
Agreement with inventor?Research project consortium agreement?
Good patent, unclear situation
Case B:2 Patents owned by the company Still PCT process, Patenting process supported by Patent
Attorney from the beginning Various fields of applications
But …
Similar technologies covered by patents on the marketEPO expert written opinion, 1 positive and 1 with claimsProject dependent by original research team
clear situation, good patents?
Case C:No Patents owned by the company Patentable technology?Still in the head of researchers, afraid of disclosing informationSolid teamGuiding milestones towards IP defendabilityFreedom to operate
But …
Alternative technologies covered by patents on the market
unclear situation, no patent … potentially good deal and
great market potential !!!
Some ideas:IPR is a strategic leverage, at least to start the discussion
Team, market and business model are also essential
Innovation finance vs ipr market is just starting in Italy, therefore …
Watch out “self made” IPR and look for professional fund managers
Top Related