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  IPToolbox Intellectual Property Commercialisation Financing & Commercialising IP
Financing & Commercialising IP
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What this module is about |
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Brief Overview |
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Anticipating problems before they arise |
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Raising investment capital in Australia has generally proven to be difficult and time consuming. |
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What the venture capitalist expects |
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Venture capital is the most commonly sought and generally the most appropriate investment mechanism to finance the commercialisation of intellectual property. |
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What venture capitalists look for from owners |
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The most important factors that venture capitalists look for. |
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The dilution Factor |
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Studies have also shown that before a business is sufficiently mature to be the subject of an Initial Public Offering (IPO), it may need up to seven successive tranches or rounds of venture capital investment. |
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A business structure for IP-driven businesses |
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Given that only five percent of technology driven start-ups are still trading after three years, a structure which anticipates and attempts to protect your business IP assets is viewed positively by investors. |
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Setting up your company structure to protect your IP |
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The most commonly used entities for conducting an IP-driven business. |
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Structuring the investment vehicle - joint venture |
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The legal structure for a business, which is commercialising intellectual property, must be able to accommodate five factors. |
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How to form a joint venture |
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Apart from the precise clarification of the ownership of the IP, four other fundamental issues must be addressed, in the Joint Venture Agreement. |
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The Scope of the venture |
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The 'scope of the venture' is the legal term for the commercial goals, which the business will pursue. |
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Ensuring contributions by the participants are maintained |
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Individual contributions to the scope of the Venture must be sought, agreed and recorded from each participant. |
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Providing for predictable management outcomes |
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In the D-Load example, each active participant has as many as three distinct, though simultaneous roles within the legal structure. |
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Introduction and exit of venture partners |
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Do not get into an entrepreneurial project without knowing these facts. |
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Who owns the intellectual property |
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IP rights created by the various participants prior to or during their participation in the project must be automatically transferred to the entity holding the IP as soon as these rights are conceived by the respective authors by the participants or the trading equity. |
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Getting the job done - project management skills |
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Developing one of these specialist structures requires strong management skills on the entrepreneur's behalf. |
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Action list for adoption of joint venture |
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An action list showing the sequential steps to be taken by the respective participants in this process. |
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Rewire the corporation |
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Conventional business models do not suit IP based businesses financed by venture capital. |
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Questions for your adviser |
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Deciding if a joint venture is appropriate to your needs |
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Summary of key issues |
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Important information to take away from this module. |
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Agenda for Completion |
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Sample Agenda and Shareholders Agreement |
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