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

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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!
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IP Rings – Across all areas
IP Rings – Across all areas
Build your IP in
surrounding Rings
to raise your value
IP.COM
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Very New Markets
Very New Markets
Strategy dictates the
size of your IP Rings
to raise your value

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Improvement Markets
Improvement Markets
Strategy dictates the
size of your IP Rings
to raise your value
IP.COM
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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
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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
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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
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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
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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
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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
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Protected Innovation
SM
Protected Innovation
SM
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Connect Innovation vs. Invention (IP)
Connect Innovation vs. Invention (IP)
Human Capital
Innovation
Products
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Connect Innovation vs. Invention (IP)
Connect Innovation vs. Invention (IP)
Human CapitalHuman Capital
IP
Invention (IP)Innovation
Products
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Connect Innovation vs. Invention (IP)
Connect Innovation vs. Invention (IP)
Human CapitalHuman Capital
IP
Invention (IP)Innovation
Products
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Protected Innovation
SM
Protected Innovation
SM
Human CapitalHuman Capital
Products
With IP
Invention (IP)
ipCapital System
SM
Innovation
Products
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The ipCapital System
SM
The ipCapital System
SM
is a comprehensive and systematic series of rapidly
deployed services designed to empower our Clients with the means to
execute well-defined IP strategies and quickly increase valuation.
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Case Studies
Case Studies
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ipCapital Group Insight:
• Owning your IP space enables you to “prove” your business model and technologies.
• “Proving” your business model and technologies attracts Investors.

ip
ip
Capital Group Insight:
Capital Group Insight:
• Owning your IP space enables you to “prove” your business model and technologies.
• “Proving” your business model and technologies attracts Investors.
A Silicon Valley start-up, has
developed breakthrough,
proprietary pattern recognition,
visualization and simulation
technology with application to a
broad range of industries. The
technology is based on the
principles underlying how nature,
with a single strand of DNA, can
encode a complete organism from
a simple one-cell bacteria to a
complex human being.
Although the company had filed five
patents on its core technologies, they
engage ipCapital Group to conduct
the complete suite of ipCapital
System
SM
services so as to fully
develop and exploit the value of their
existing inventions.
ipCapital Group performs an
ipScan
SM

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 25
ipDisclosure™ documents for the
subsidiary.
ipCapital Group also creates an
ipLandscape
SM
, ipAnalytics
SM
,
ipStrategy
SM
and ipValuation
Story
SM
for the subsidiary.
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 Story
SM
to help raise a
second round of $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.
Situation
Situation
Our Solution
Our Solution
Outcome
Outcome
Proving the Business Model
Proving the Business Model
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ipCapital Group Insight:
• “Packaging” your IP story to supplement traditional valuation methods strengthens your
negotiating position.
ip
ip
Capital Group Insight:
Capital Group Insight:
• “Packaging” your IP story to supplement traditional valuation methods strengthens your
negotiating position.

A $30 million startup computer
networks company with an
innovative network security
technology needs to document their
technology rapidly to support a
significant increase in their
valuation in impending
acquisition talks with another
company.
Within four months, ipCapital
Group performs an ipScan to
create an inventory of the startup’s
intellectual property and documents
the enabled inventions in 27
ipDisclosures.
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.
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.
The executives credit much of
their negotiation success to their

comprehensive ipPortfolio, clearly
defined ipStrategy, and powerful
ipValuation Story.
Prior to the purchase, the acquiring
company had no patents. Its
executives indicate they
valued
the startup so highly because of its
intellectual property.
The General Counsel of the startup
becomes the General Counsel of
the acquiring company and invites
ipCapital Group to capture its IP.
Situation
Situation
Our Solution
Our Solution
Outcome
Outcome
Increasing Valuation
Increasing Valuation
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ipDue Diligence
SM
Testimonial
ipDue Diligence
SM
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 the 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
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Actions to take - Company
Actions to take - Company
Perform and immediate ipDue Diligence
SM
to know what
you have
Create the new IP you need to fill the holes in your IP
and to position your future markets
Create the link between your IP, business and your exit
strategy – improve direction focus
Use your IP to “sell” into the market to raise gross
margins
Use your IP to raise money and increase valuation