The completion of Research and Development phase of IP embarks an inventor to the next step of commercializing his invention. However, before the economic benefits of the invention can be availed, the inventor has to protect his asset by patenting it and then only shall he reap the benefits of his invention. Commercialization of IP covers the aspect of generating income by making the intangible asset available in the market either for lease, trade or use it to improve business efficacy by either increasing revenues or reducing costs.

Initially it becomes quite difficult to attract angel investors and venture capital (VC) funding because sophisticated investors do not invest unless they see a unique and valuable opportunity. VC firms understand the importance of IP in valuing a business. The appropriate IP protections enable businesses to maintain a competitive advantage, mitigate risks and raise outside funding. There are a few things that venture capital firms consider in an early-stage company’s IP strategy before investment.