Changing IP Landscape
“Intellectual property is the backbone of America’s economy.”
– Samuel Palmisano, Former CEO of IBM
Smart investors and entrepreneurs appreciate the value of IP investments. In fact, their value is undeniable — as of July 31, 2013, IP value is included in the U.S. measure of GDP.
It is easy to see the appeal. IP investments offer a high return on investment that is unaffected by the rise and fall of world markets. Recent publicly-recorded sales of IP assets show an average value of $363,000 per assets. The estimate is conservative — most experts observe a much higher value. Recent data on venture-backed investments shows that the value of a successful emerging company with IP is greater by $1 Million to $5 Million per IP asset compared to a company without IP.
Recent IP transactions underscore the wisdom of investing in the IP rights of an emerging company’s technology. Investing in IP enables innovators to deliver game-changing products and services to market, while decreasing risk to investors. By offering increased exit options and valuations, IP investments are far less risky than conventional venture capital investments.
IP Capital leverages the high value placed on IP by investing capital in startups and emerging companies to protect their technology — and future — with “IP Ecosystem portfolios,“ which are much larger and of much better quality than the IP portfolios held by typical venture-backed companies. Cote Capital goes even further, investing in “in-house“ IP expertise needed in today’s idea and IP-based economy. IP Capital empowers innovators to be creative by increasing exit options and valuations for emerging companies around the world.
IP Capital protects the single-most important source of innovation, new industries and jobs — emerging companies.
“Firms with the most valuable intellectual capital are more likely to succeed in intensely-competitive global markets and, therefore, are also more likely to have high market values.”
– Dr. Robert Shapiro, Former U.S. Under Secretary of Commerce for Economic Affairs
Dr. Kevin Hassett, Director of Economic Policy Studies, American Enterprise Institute