by V. Trotter, Chink in the Armor:
In case you have never been involved in the process of bringing an innovative product to market, here’s how it works:
First, you have to have a patent that is fairly young. Patent protection only lasts so long. If your patents get to be much over ten years old and you haven’t gotten funding, the Vulture Capitalists begin to refer to your deal as being “long in the tooth”. The longer the tooth, the lower the chances anyone will give you funding. Once patent protection expires, the technology is lost forever. No one will ever fund it.
You must be willing to assign your patents to the Vulture Capitalist. It’s your IP they are interested in, not you, not your business acumen. If you aren’t willing to give up your IP, you can forget funding.
In addition to placing your IP up for sale, you have to be willing to give up a significant portion of the equity in your company. By significant portion, think along the lines of 90%, especially if this is your first time. If you have been down the road before and you are a proven winner, there is a chance you can negotiate a better deal. No matter what, if you aren’t willing to give up significant portions of your equity, you can forget funding.
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