VerifyiP

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Thinking of investing in a start-up? Intellectual property due diligence is crucial to the decision-making process. Our cost-effective VerifyiP service provides an independent IP due diligence review before investment, flagging risks and highlighting opportunities for growth.

Why IP Due Diligence Matters for Investors

When a new business wants your investment, you need to be sure that everything they tell you about their products and ideas is accurate.

Intellectual property due diligence is a way of confirming that a company’s IP assets are legally sound, and it can be very revealing if you delve deep enough.

Questions on your investor IP checklist should include:

Does the company have the necessary IP protections in place to safeguard its ideas?
How valuable are these IP rights to the business?
Is there a robust IP strategy to ensure your investment remains secure as the business moves through other funding rounds?

As a venture capitalist or investor, you're not just investing in IP – you're buying into the business's ideas, products, people and future. This means verifying that the company you're interested in has a commercial IP strategy that aligns with its long-term business goals.

Start-Up IP Due Diligence: How VerifyiP Can Help

Want an expert, honest assessment of your potential investment? VerifyiP gives you an in-depth appraisal of the IP risks and opportunities, independently verified by an experienced attorneys.

We work closely with the company you're considering investing in, going through every detail of the business to build a picture of its IP.

During our IP due diligence review, we'll evaluate:

How well the company's IP aligns with its business model and commercial goals.
The IP strategy it has in place to deliver its business plan.
Whether the company has secured the necessary IP rights to support its business plan.
Who owns any existing IP and how this might change over time.
If IP is managed at board level or at a lower managerial level.
The potential impact of working with third parties to develop and market technology.
If there are any known issues with freedom to operate (FTO) or IP ownership.
How the business currently works with patent attorneys.‍
Whether the IP would increase the value of the business when sold or put the deal at risk.

Once we have a clear picture of the business, we'll present our findings explaining how the IP fits into its business plan. This will give you the information you need to make an informed investment decision.

Other Benefits of VerifyiP for Investors

Detailed IP debriefing

We hold a meeting with the target company where we discuss our findings and IP-focused recommendations. You're invited to attend. We also share insights we've gained from working with similar businesses.

Expert technical support

If a company uses a crossover of technologies – such as AI in healthcare – they'll get a team of specialist attorneys from across our technical departments. This gives an added layer of security to the IP risk assessment for investors.

Cost-effective legal guidance

If your IP due diligence needs more legal support, we have experienced IP solicitors who can advise on a wide range of issues. Because we handle everything in-house, this helps to keep costs down and make the process simpler.

FAQs About IP Due Diligence for Investors

What role does IP play in investment decisions?

IP is crucial to investment decisions because it impacts competitiveness and long-term growth potential. IP due diligence can reassure VCs and private equity firms that a company has the right strategy in place to drive forward its business plan and boost profits.

What can go wrong if IP isn’t properly checked before investment?

If you don’t carry out an intellectual property risk review before investment this could have serious consequences. These include legal disputes, reputational damage and loss of competitive edge. Ultimately, this could lead to you losing money.

How does IP affect a start-up’s valuation?

IP can have a significant influence on a business’s valuation. A strong IP strategy can justify higher valuations during funding rounds. A weak IP strategy can drive down the valuation or even cause investors to walk away completely.

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How does IP affect a start-up’s valuation?

What is the true value of IP due diligence?

As an investor you’re looking for a start-up with a strong, enforceable IP portfolio that is likely to generate a substantial return on investment.

Rigorous IP due diligence is essential. It highlights a start-up’s IP strengths and weaknesses, which reduces risk and helps with accurate valuation and informed decision making.

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