Bijan Khosravi
Angel investor
If you want to build a successful startup, you need intellectual property. That’s right, I said IP, not app – the dreaded buzzword that’s taken over all of our lives. Driving directions, coupons, magic 8 balls…? We can’t live without them, but do we need to start a business with them? The answer is no. If you’re an entrepreneur and you want to attract smart money, you need to acquire IP in order to be successful in this effervescent app startup world.
First of all, the businesses behind many of these apps are rooted in the service industry. Sure, companies like Groupon GRPN -0.62% and Airbnb bloomed when they were launched, but soon there will be more competitors showing up with the same product and offering it in different ways – ultimately taking business away and leaving these companies less valuable. Why are they so vulnerable to the nature of competition? Because they don’t have the power to protect their products with a patent.
And that’s key to creating a successful business.
I know, I’ve done it before. Several years ago, I had an idea for an optical product for one of my companies. I licensed the Solgaard patent from University of California, Davis with cash and equity. Based on that IP, I raised funds from venture capitalists when the company worth $250 million. I built a highly valuable product, competed with other major suppliers and generated significant revenue. That might not have been the case if I hadn’t acquired the patent to this product and held it in the company’s name.
So the question is, where do you get good IP that will attract smart money and build a successful company? Nowadays, the best place to acquire it is at a university. And, due to recent changes in federal stimulus packages, it’s now easier than ever – and more lucrative — to transfer tech from a university to the marketplace. The National Institutes of Health re-launched a stimulus program in 2011 that encouraged federal agencies to set aside money for R&D that developed tech commerce. The Department of Defense awarded $167 million in funding this year to universities in the area of science and engineering. And, in general, awareness of the benefit of transferring technology to the marketplace and the ease of which to do so has inspired many new endeavors. When looking for IP in universities, consider these factors.
The well runs deep – Sure, Stanford, MIT, Georgia Tech and others are obvious choices for finding IP, but what about the universities in your city or state? Perhaps you’re interested in a niche industry or want to bring commerce to your area. The Association of University of Technology Managers (AUTM) – a nonprofit organization focused on academic technology transfers – has a search engine where you can find the latest IP available from universities. The search engine has access to hundreds of universities worldwide. Volume is the name of the game here. The organization reported in September that there was a 16 percent increase in the number of tech startups from university transfers. The possibilities are endless…
Read entire article at:
http://www.forbes.com/sites/groupthink/2014/12/01/why-you-want-ip-for-your-startup/
