Investing in technology necessitates extensive research, particularly when the technology is new, to determine whether it is the best option and timing. Technology investments could take the form of financing from angel investors, companies, venture capitalists, the government, or other institutions through grants. Prior to investing in a new technology or product, consider its technological, economic, and business viability, followed by a risk assessment, patent valuation, and due diligence. Furthermore, patent data allows you to anticipate technology trends and disruptive innovations. As a result, combining patent information with market data allows for more informed research and investment decisions.
Before investing in a new technology space, make sure you’re investing in the right one. Examining patenting trends, calculating the value of existing patents, and researching competitors’ technological strengths will provide you with an idea of the current landscape.
This graph depicts the number of applications filed and the number of grants made as a result of these applications. The grant rate is a good indicator for identifying successful applications and helps to understand technological progress.
Another step in validation is to analyze competitors’ existing IP and determine if they pose a threat to the proposed transaction. Early warning signs will be provided by a risk assessment (if any). This validation is carried out using the techniques listed below.
As a result, using business intelligence data provided by patents, you can project competitors’ strategies. This can help you develop your own technology strategies to tackle them.
The valuation of intellectual property assets is an important factor in determining the quantum and value of technology investments. The price point for the proposed investment is determined by an IP valuation process for the existing set of intellectual property.
Cost-based valuation (estimates of costs for innovative ideation, patent filing, and maintenance costs), market-based valuation (patent portfolio comparison with competing companies based on technology, portfolio size, and quality), and income-based valuation (calculations of patent portfolio income during a certain time period) are the three types of IP valuation.
Following the completion of the technology validation, risk analysis, and valuation tasks, you should conduct legal and financial due diligence to mitigate any remaining investment risks.
In a nutshell, a variety of factors such as consumer perception, technology popularity, and future market trends all have an impact on your investments. Nonetheless, thorough IP analysis and research can reduce the risk of tough decisions concerning technology investments in any R&D-driven business.