De-Risking Venture

De-risking Venture

“We give abundant advice to founders about how to make startups succeed yet we offer few models about dealing with failure.”

– Steve Blank, Serial Entrepreneur and Author, The Four Steps to the Epiphany

More than two-thirds of emerging companies fail to return their invested capital. These emerging companies fail for a number of reasons—market focus and timing, execution decisions, or simply being out-resourced by larger, “fast-following” competitors with the resources to commercialize a new technology more quickly and with a greater chance of success. Allowing emerging companies to serve as free R&D laboratories for the benefit of larger competitors has been a source of significant losses for venture capital over the last decade, contributing to falling returns.

We value great ideas in addition to great execution. IP Ecosystem portfolios offer technology exclusivity, something these larger competitors cannot recreate, making emerging companies with such portfolios more attractive acquisition targets and greatly increasing the chances of a successful exit. By reducing uncertainty over an emerging company’s IP rights, such portfolios inspire creative collaboration among industry players and accelerate innovation, not litigation.

By investing in “in-house” IP expertise and through IP Ecosystem portfolio development, IP Capital can, not only substantially increase exit value and potential, but also provide entrepreneurs and investors with tradable assets to realize the full value of their investments and risks taken in developing new technologies.

IP Capital de-risks venture investments by allowing entrepreneurs and investors to bet on an emerging company’s technology.

Investment Strategy  / IP Ecosystem Portfolios /  De-Risking Venture  /  IP Capital Advantages