The Impact of IP Rights Ownership on VC Investment Opportunities

In addition to previously stated reasons, I would like to add that, from my perspective, IP portfolio shows the investors that the company is strongly committed about the future of a business. Since the applications for IP sometimes are costly, and, in case of a patent registration, time-consuming and take a thorough scrutiny and verification, it places a “quality sign” on the asset and shows the devotion of an entrepreneur, as he or she invests one’s own money and time resources. And also, by securing the asset in various countries, other that the origin one, shows the investors that a business is oriented towards expanding the target market in future. This, in turn, gives (or at least increases) the trustworthiness.
To sum up everything that has previously been stated, investors and venture capitalists prefer an existing IP portfolio or at least a clear projection for one over its absence, because it builds the competitive advantage, has a potential to increase revenues long-term, adds value to the business and increases the potential for a strong position in an exit. It does also contribute to trust and commitment, which are an integral part of an investment.
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