What investors ask about your patents
When a deep-tech company raises money, investors and their lawyers look at the intellectual property closely. The details differ from deal to deal, but several questions come up often.
Who owns the technology?
The company should hold written assignments from every founder, employee and contractor who contributed. If the work started in a university lab, there may be a license agreement, and research funded by the federal government can carry additional rights and obligations. Gaps here are among the most common surprises.
Are the inventors right?
Patents must name the correct inventors. An error can sometimes be corrected, but it is easier to get it right at the start.
Does the patent cover the product?
A granted patent is not the same as protection for what you sell. Investors will ask how the claims relate to the product and to the roadmap, and whether a competitor could achieve the same result in a different way.
Where is it filed?
Coverage should match the markets that matter for manufacturing and sales. Filing deadlines abroad are strict and cannot be restored once missed.
What about freedom to operate?
Owning patents does not mean you are free to sell the product. Investors may ask whether anyone else holds patents that you could be accused of infringing.
What is kept as a trade secret?
Some know-how is better protected by secrecy than by a patent. Investors want to see that it is identified and that confidentiality practices exist.
A short review of these points before a financing starts is much easier than answering them in the middle of one.
This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Patent law changes and every situation differs. Please talk to a patent attorney about yours.