Our client was a venture capital firm looking to invest in a pre-revenue tech company. Glasshouse Advisory carried out an IP Rating based as part of the due diligence.
The target company has developed potentially ground-breaking payments technology, which is protected by two patent families and trade secrets.
The VC required an analysis of the technology’s earnings potential and risk profile – integrating economic, legal and technical perspectives.
Our IP Economics team – with assistance from a patent attorney specialising in electronics - provided an analysis of the technology through an assessment of:
Our key findings
The VC was satisfied that first-mover advantage and limited period of exclusivity were sufficient to meet its hurdle rate of return. It invested in the company and has already on-sold its stake.