IP as a strategic asset in fundraising
For investors, a startup’s intellectual property is not just a legal matter: it is an indicator of the business’s strength and defensibility. A well-documented IP strategy can make the difference between closing a round or losing the opportunity.
What do investors look for in IP matters?
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Clear code ownership. Assignment agreements with all developers (employees, freelancers, co-founders) signed and in force.
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Registration of intangible assets. Registered trademarks, filed or granted patents, and documented copyrights.
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Third-party component audit. Inventory of open-source libraries used, their licenses, and compatibility with the business model.
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Data and dataset protection. If your product is data-driven, investors want to know that you have the right to use the data, that you comply with GDPR, and that the data is protected.
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Freedom to Operate. Evidence that the product does not infringe third-party rights.
How to prepare your IP for a round
- Structured IP data room. Include all ownership documents, registrations, contracts, and risk analyses in a dedicated data room.
- Preventive IP due diligence. Anticipate investor questions by conducting an internal audit before the round.
- IP narrative. Prepare an executive summary explaining how your IP creates barriers to entry and competitive advantage.
Common mistakes that concern investors
- Code developed without assignment agreements
- Trademarks not registered in target markets
- Use of libraries with restrictive licenses (GPL in SaaS products)
- Lack of NDAs with employees and collaborators
At A2 Estudio Legal we help startups prepare their IP strategy before investment rounds. Book a call to design your IP cap table.