Up to 80% of a company’s value is made up of intangible assets which are hard to quantify and sometimes even identify. One rich and trusted source of corporate information is in patent data. Patents contain valuable insight that can show you where a business is going, what technology is worth investing in and who are the most prolific emerging innovators.
Look at two equities that are relatively similar on the surface, but then dive into the underlying portfolio and you can understand if they may be diverging from each other. You can then understand who might be moving into a different industry or technology space and make your investment decisions based on what you think is the better strategy.
A fund may want to research an innovative industry, for example synthetic biology. They then want to investigate that industry to identify the best investments within that. You can use the patents to understand who has the most protected innovations and who has the ‘strongest’ IP (forward citations/geographical coverage).
A fund may research an equity which has a company that’s either holding or interested to take a position in. To decide on the position, they can look at the company’s IP and then assess how it sits within the industry. Is there wide industry coverage? Geographical coverage? Diverging strategy? Sustainable innovations?
Get actionable market intelligence to follow licensing deals, assess innovation efficiency, and track the value of portfolios. Understand the competitive landscape by using patent data to find emerging companies, analyse freedom to operate, and identify litigation threats. And gain access to technology insight through real-time updates on core tech areas, track emerging technologies, and identify technical partners.
Of all the factors to consider when entering a new market, geographic or product-IP can be among the hardest to assess. VCs need to understand whether there are infringing local patents that don’t exist in home markets, whether an incumbent heavily protected tech area is severely limiting the investment’s freedom to operate, and if all of competitors in the market are known including the potential new entrants.
Using our API, VCs can set up alerts triggered by the events that matter most—new competitor filings, new licensing deals, and litigation activity. This means you can immediately investigate the extent and potential impact of an event—and determine how this changes patent value, competitor strength or market conditions.
Using IP and innovation data, you can find new entrants to the market and find the signals in the noise by looking at the patenting activity of established companies. You can also use connected intelligence to avoid crowded areas where the cost of entry and cost of talent is higher and avoid being a late entrant to a burgeoning innovation hotspot.