Why do Investors Love IP?

by Todd Bailey
Montreal, Quebec - March 14, 2023
IP without Jargon

Investors do love IP. But why do they care? And what are they actually looking for in AI ventures?

Not all VCs are the same.  But for AI ventures, most say they are looking for 3 key things:

1. IP Self-awareness.  Investors want to see that you are IP-savvy.  Concretely, this means:

🔹 you can explain   where and how IP plays important roles in your product and business,
🔹 you “get” that IP is an ongoing, iterative process, and not just a one-time check in the box, and
🔹 you’re taking a long view, creating assets like an international patent application that acquirers will want, or you’ll need to scale.

2. A competitive moat. If your product can be easily replicated, are you a good investment?   Showing investors that you have taken appropriate IP measures – aligned with your value proposition – demonstrates that you have a sustainable niche worthy of their investment.

3. Innovative culture.  In a fast-changing world, company culture is everything.  If your employees also understand and take IP thinking seriously, to continuously review and enhance the company’s IP measures, that helps build investor confidence that you have a winning organization.

In essence, VCs see IP as a measure of maturity and robustness.

But many founders still think IP is just about judges and courts.  In reality, in 2023 IP is a business tool you can leverage to provide real tailwinds for your business.

Like helping to secure your next funding round.
(No judges or courts required.)

It’s time to get your IP working harder for you.

Made possible through the
financial support of
Gouvernement du Québec
Gouvernement du Canada

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