IP Problems That Can Kill A Funding Round

A practical guide to identifying and addressing the IP weaknesses that can undermine investor confidence and put a deal at risk.

A company may have an impressive product, growing revenues and a charismatic founder. The pitch deck might mention patent applications, proprietary technology and unique know-how. Yet deals still fall apart during due diligence.

The reason is often simple: investors discover that the company does not fully own, control or protect the assets that make it valuable. While many IP issues can be addressed if identified early, others can delay transactions, reduce valuations, or derail a funding round entirely.

Here are five of the most common IP problems investors should look for, and founders should address, before a funding round begins.