In the hyper-competitive race to secure investment, having a solid intellectual property (IP) story isn’t just a bonus—it’s a necessity. Too often, businesses see IP as a box-ticking exercise, a set of documents to file away rather than a fundamental component of their value proposition. To truly differentiate your company and attract the right investors, it’s crucial to treat IP and other intangibles as a core driver of business value. Here’s how to prepare for that pivotal moment when your business comes under the microscope.
Show IP's Strategic Value, Not Just Its Existence
Investors are looking for growth and defendable revenue streams – your IP directly enables and underpins these. You should illustrate how these intangible assets map to your business model and revenue potential. Whether it’s proprietary code or critical data safeguarded as trade secrets, these elements can reinforce your economic moat, signalling robust management and strategic foresight.
Investors are looking for growth and defendable revenue streams – your IP directly enables and underpins these.
When IP is linked to the foundation of your business’s competitive edge, it signals to investors that you are not just building today but protecting what you create into the future. As emphasised in Intanify’s Moat, connecting assets to defensibility makes a compelling case to boards and investors alike.
Illustrating your moat with the assets which underpin it
Surface Issues Early
Nobody wants surprises during due diligence. And there will be curveballs – guaranteed – that’s why preparation is so important. Unresolved IP issues can delay or even derail a deal. Some examples of this are:
- Ownership ambiguities, particularly in software with open-source components
- Unidentified infringement risks—either your technology infringing others' IP or competitors infringing yours
- Gaps in IP protection that leave valuable assets exposed
The last thing you want is to scramble for solutions when investors are already probing your business. A comprehensive IP review ahead of any funding round allows you to identify and rectify potential problems before they become deal-breakers.
Addressing these issues proactively not only smooths the diligence process, but showcases your business’s professionalism and foresight. After all, good management involves pre-empting challenges and crafting strategies to mitigate them.
Build a Comprehensive Inventory of IP and Intangible Assets
A fragmented or incomplete view of your IP can weaken your investment pitch. Investors are attracted to businesses that demonstrate a strong grasp of the assets which make them successful. At Intanify, we identify 25 distinct types of intangible assets—from traditional IP like patents and trademarks to modern value drivers like data assets, code, and brand equity. This exhaustive approach ensures nothing falls through the cracks.
Having this complete picture allows you to:
- Display the breadth of your strategic assets
- Demonstrate value-creation mechanisms
- Identify potential risks and opportunities
- Present a coherent narrative to investors
An exhaustive inventory encompassing everything from patents and trademarks to data, code, and brand equity can illustrate the true scope of your company’s worth.
Ensure Your Governance is Solid
Governance might not be the most exciting aspect of building your business, but it’s indispensable for maintaining investor confidence. Investors do check for this. A well-documented IP policy signals that your business is prepared and resilient, protecting assets from potential legal vulnerabilities. Simple yet effective steps, like implementing a trade secrets policy, can mean the difference between being protected under the law or left defenceless.
Investors do check for this. A well-documented IP policy signals that your business is prepared and resilient, protecting assets from potential legal vulnerabilities.
Assistance When Stakes Are High
While many resources exist to help companies independently strengthen their IP management, there are times when professional assistance becomes invaluable. IP audits, such as those offered by UKIPO or Intanify’s Discover product, provide a detailed review of your position. If you’re operating in a particularly competitive space or have a significant patent portfolio, involving IP lawyers or fractional IP managers can be a strategic investment.
Conclusion: A Proactive Approach Pays Off
Ultimately, the key to making IP work for your business is treating it as a cornerstone of your value proposition, not a background administrative task. By taking steps to showcase your IP’s strategic importance, pre-empt potential issues, and maintain sound governance, you build trust with investors and fortify your path to securing investment.
Investing in a thorough IP strategy today can be the difference between just surviving a due diligence process and thriving through it.