Tag Archive:patent financing

ByCarolyn Keane

Child’s trisomy 18 (Edwards Syndrome) condition spurs mom’s invention

Biomedical engineer Melanie Watson had plenty to grapple with when prenatal tests during her second trimester revealed her daughter, the second-born of two, had a very serious genetic condition called trisomy 18. In this condition, instead of normal two chromosomes on the 18th chromosomal pair, there are three.

Half of all babies born with trisomy 18, or Edwards syndrome, die within the first week, with many others stillborn. Only 5 percent to 10 percent live beyond age 1.

“She is my miracle baby,” Watson said of Claire Juliette Watson-Ray, now 5½. It’s important to get the one-half in there “because every day counts,” said the Trine University assistant professor of biomedical engineering, who earned her undergraduate and doctorate degrees from Louisiana Tech.

Watson has fought every day for her fragile daughter’s life, not accepting the no-hope pronouncement given by doctors at the Texas hospital where Claire was born and not giving up when Claire, at age 14 months, was diagnosed with liver cancer.

That tenacity and resolve to give Claire the highest quality of life possible is what also led Watson on a journey to seek an innovative solution to quickly and easily perform routine blood tests so Claire — and anyone with a health condition that requires frequent blood testing – can do so wherever and whenever they want, with results sent via a cell phone to the doctor.

The eighth version of the hand-held, blood-testing device prototype is now being 3-D printed, and Watson is in the process of patenting the invention. It is the culmination of more than five years of research and development, and Watson’s entrepreneurial endeavors through her company Blaire Biomedical have drawn high praise from regional and state funders. She was recently named one of two first awardees of support through Indiana’s Elevate Ventures’ new Community Ideation Fund.

The fund, created in 2018, enables ideation-stage high-potential companies to move closer to a specific, measurable technology or product development milestones through an investment between $5,000 and $20,000. Eligible applicants include Indiana-based companies with headquarters in communities under a partnership with Elevate Ventures, and with no more than $50,000 in trailing revenue over the past 12-month period.

Elevate Ventures, a venture development organization based in Indianapolis, Ind., provides entrepreneurs with the expertise and resources needed to transform ideas into profit-making companies. The Community Ideation Fund $17,500 convertible note will help Watson move ahead with final development of the blood-testing device by hiring a part-time design engineer.

“We need to improve the optics (in the device) in order to increase the accuracy of blood tests,” Watson said, noting this funding and a recent $1,000 micro-grant from the Elevate Northeast Indiana Farnsworth Fund, plus additional funding she is seeking through other regional and state sources is crucial. “It is essential for up-and-coming entrepreneurs to get into the seed round to draw venture capitalists and angel investors.”

Already available is a hand-held blood glucose testing device that operates similarly through a phone app, but Watson said there is no other such device on the market that can perform multiple blood tests.

“There has to be a better way”  To read the rest of the story click:

Child’s Trisomy 18 (Edwards syndrome) condition Spurs mom’s invention

Facebooktwittergoogle_plusredditpinterestlinkedinmail
ByCarolyn Keane

An Essential 9-Point Checklist for any Entrepreneur Looking to Sell an Online Business

An Essential 9-Point Checklist for any Entrepreneur Looking to Sell an Online Business

Image credit: SanneBerg | Getty Images
There are many reasons why an entrepreneur ultimately decides to exit a business. Some of the best incentives? Moving on to new opportunities; recapitalization; and, perhaps best of all, an especially lucrative buyout offer.

Related: 10 Questions to Ask Before Selling Your Business

No matter what the reason, if you’re the one moving on, take the necessary steps to extract the maximum value possible from your sale. With all the blood, sweat and tears you’ve put into building your business, don’t let yourself be shortchanged on the way out.

Here are nine actionable steps you can take to better prepare your business to be sold to a discerning buyer, along with suggested resources to help you accomplish them.

1. Detailed financials

Having strong accounting principles in place, from the beginning, will help put you in a position to succeed.

Industry stalwart Quickbooks provides you with all the tools you need to track your financials and generate detailed reports. It makes the process easy, too — Quickbooks automatically syncs with most bank accounts– drastically cutting down on data entry.

2. Verified traffic

Google Analytics is an indispensable tool for monitoring and verifying your website traffic. It’s the first step to knowing who your prospects are, what they want, where they’re coming from and how far they’ve gotten through your conversion funnel. If you have a website and haven’t set up Google Analytics, stop whatever else you’re working on and do it now.

Being able to show verified traffic to a buyer, over as long a time frame as possible, will greatly enhance the salability of your business.

3. Stand-alone branding

Building a brand strongly tethered to a founder’s persona might feel right when you first start. But if that brand becomes successful, it’s preferable that the messaging not be too closely tied to its founder. That can actually become an obstacle when it’s time to sell, particularly if the founder is to have no ongoing role in the business after the exit.

Related: Time to Sell Your Business? You’ll Need Metrics.

Consider building a stand-alone brand right from the get-go. Your brand should be aligned with your values and your company’s core mission. A smart branding strategy can help you achieve those aims without the founder being the “face” of the business.

Unfortunately, there’s no quick fix for building a brand. But it’s more important than ever.

Branding guru David Lemley’s Retail Voodoo site, while not specifically geared toward online businesses, is a great resource for learning more about the importance of branding strategy and its potential ROI.

4. Keyword analysis

Knowing what keywords your prospects are searching for can help you, and any potential buyer, assess whether your site is built on a solid search engine optimization (SEO) foundation.

To find out what keywords your site should be targeting, use tools like SEMrush to uncover which organic and paid keywords drive traffic to your competitors. The Google Keyword Tool enables you to get the most accurate search volume and PPC (price per click) data for those keywords.

A site that ranks high in search engine result page (SERP) listings on relevant keywords will earn a higher valuation. Prospective buyers can be assured that their acquisition target is ahead of the game for organic traffic and has a clear marketing strategy for both free and paid clicks.

5. Content marketing

ROI in content marketing has a reputation for being slippery to measure. Despite this, content is the foundation of SEO. Having a proven content marketing strategy, with positive search traffic results to back it up, can measurably increase the value of your business.

Content marketing isn’t just about your blog. It applies to many channels: social media, product descriptions, guest posts, Youtube videos, etc. Anything content-related that drives traffic to your site and promotes lead conversion fits under this umbrella.

Once upon a time, all you needed for a solid SEO strategy was to stuff your site with keywords. Google is much too smart for that now, as are your customers. There’s simply no substitute for quality content. Deploy it, using a coherent strategy for improving your search rankings. Your bottom line, and your valuation, will grow.

6. Outsourcing

Outsourcing is an important element in fostering limited owner involvement — a key factor buyers look for in any online business acquisition. While building the right remote team takes work, having it in place, and having your standard operating procedures (SOPs) well documented, will greatly improve the salability of your business.

While there are many options for outsourcing, often industry-specific ones, two of the most reputable companies remain Upwork and Toptal.

7. Legal

Make sure you have clear and verifiable rights to all of your intellectual property. This includes any trademarks, copyrights or patents your business might hold. These can be an invaluable asset to your company, and any serious buyer will want to ensure that these are owned (and thus able to be sold) free and clear.

Additionally, make sure to get non-disclosure-agreements (NDA) in place with anyone you enter into negotiations with. Do this before you start talking seriously — and certainly before you reveal any sensitive information, financial or otherwise.

An option here is offshoring, or outsourcing of legal assistance, through legal process outsourcing (LPO). For relatively simple tasks, such as forming an LLC or S-Corp or running a trademark search, LegalZoom may be another viable option.

When it comes to something as important as protecting your IP, however, always employ our own counsel.

8. Know your value.

After you’ve taken all of the steps above, you or a qualified professional should be in a very good position to assess the true value of your business. There are industry standard-valuation methods for this: Typically the seller discretionary earnings (SDE) model is used to value a business worth under $5 million, while “earnings before interest, taxes, depreciation and amortization” (EBITDA) is used for companies valued over that amount.

9. Know your buyer.

One of the many reasons to consider approaching an M&A advisor to help with the sale of your business is that he or she will have already done the due diligence required to vet qualified buyers. These professionals will entertain offers only from candidates who have met stringent criteria. If you elect to go it alone, all of this responsibility falls on you, the seller.

Related: Expert Advice to Help You Prepare to Sell Your Business

Final thoughts

Building a successful business, and growing it to the point where it might attract attention from a buyer, is no small feat. Neither is coming to the decision that it’s time to move on. You may be ready to take your foot off the gas on this particular vehicle, but don’t stop before crossing the finish line. Follow the steps outlined above to ensure you get the maximum possible return when selling your online business.

 

https://www.entrepreneur.com/article/304690?utm_source=newsletter&utm_medium=email

Facebooktwittergoogle_plusredditpinterestlinkedinmail
ByCarolyn Keane

Court Issues Temporary Restraining Order Against Invention Patenting and Promotion Company for Unfair and Deceptive Trade Practices

There are many businesses focused on helping inventors develop and monetize their ideas.  There are companies that, for instance, help people seek patents on their inventions, license their inventions, turn their ideas into tangible products, and promote those products.  World Patent Marketing in Florida bills itself as one of those companies.  But according to a complaint filed by the Federal Trade Commission this month, World Patent Marketing is in fact “an invention-promotion scam that has bilked thousands of consumers out of millions of dollars.”  The FTC charges World Patent Marketing with committing unfair and deceptive trade practices in violation of Section 5(a) of the FTC Act. On March 8, the Southern District of Florida found that the FTC was likely to succeed in proving this charge and issued a temporary restraining order.

Read more at http://www.jdsupra.com/legalnews/court-issues-temporary-restraining-50911/

Facebooktwittergoogle_plusredditpinterestlinkedinmail
ByCarolyn Keane

Patent Financing: Getting funding for patent applications

Russ Krajec is the CEO of BlueIron, a patent finance company, and author ofInvesting In Patents, which explains the BlueIron investment model. Russ is an angel investor, registered patent attorney, the former COO of a venture-backed startup company, and an inventor with 30+ US patents/applications.

lightbulb-moneyYear after year the patent laws become more complex. It seems with every decision from the Supreme Court and the Federal Circuit more detail is mandated for a patent application to be complete and for patent claims to have a fighting chance. These case law changes, as well as legislative and regulatory changes, are putting the patent system out of reach for startup companies.

The patent applications that must be filed require an enormous investment in time, money, and expertise – mostly by patent professionals who curate the inventions, write the patents, and nurture them through the examination process. To get high caliber, well researched, and well-written patents costs money – a lot of money unfortunately.

Quality is the main buzzword at the Patent Office, and increasingly so within the industry. Gone are the days that one could just get a patent and expect that it would be valuable enough to license or sell. Quality patents that cover quality technologies is the new business reality in the patent sector. But with the skyrocketing costs associated with obtaining the desired quality many startups resort to cost-saving strategies that most often only work to irreparably harm the changes of obtaining a worthwhile patent.

Filing a hastily drafted, woefully inadequate provisional patent application is a mistake, and one that can lead to a patent foundation being built on a hopelessly compromised base. The patent community was recently reminded of this fact when the Patent Trial and Appeal Board (PTAB) refused to recognize the priority of a provisional patent application filed to cover Juxtapid, a cholesterol medication. The PTAB found the provisional application defective because it did not teach the invention adequately and provided insufficient dosage information. This just proves that bad provisional applications are a very real problem even for pharmaceutical companies that should know better.

What are startups to do? There is never enough money to do everything a startup needs to do in order to succeed, so even the best, most well funded startups need to triage. As a patent attorney with over 15 years of experience, I know all too well this very real financial dilemma. Compounding this problem is the truth that most innovative startup companies are entering a marketplace where larger, well-financed corporations with giant patent portfolios dominate. Patents can be the great equalizer, but such a strategy requires high quality patents.

Another reality in the patent industry is that a client will run out of money before a patent attorney has run out of ability to make a patent application better. But what if the client and the patent attorney were not on opposite sides of the spreadsheet with different financial interests? What if their financial interests coincided and the fortune of both rise or fall based on how strong the patent is and whether the client succeeds? This is why I decided several years ago to start BlueIron IP, an investment company that finances patents for startups.

BlueIron’s non-dilutive financing for startups pays all of the patent costs, including filing fees and attorney’s fees, using a conventional commercial “lease-back” arrangement. This model has been gaining traction since its first release in the fall of 2014. After financing professional poker player Phil Gordon’s patent for his new software startup, Chatbox, BlueIron has made investments in startup companies in software, hardware, biotechnology, medical devices, financial services, and agriculture.

By financing the patents, we remove the cost barriers to getting strong, high-quality patents. This opens up the options to do a full due diligence workup, which most startups simply cannot afford. It also means the patents can be expedited and obtained more quickly. It also frees up critical capital for the startup to invest in business activities rather than paying for patents.

For expediting applications, when possible, we prefer the PCT-Patent Prosecution Highway, which often results in an issued patent within 12 months. With PCT-PPH, the costs of the patent are compressed into a 12 month window, rather than spreading them out over 3-5 years. If a patent application gets into the PPH the allowance rates are much higher, and in many cases over 95%. Given that an issued patent is far more valuable to a startup company than a mere pending patent application – especially one raising angel or venture capital – this strategy pays quick dividends, which benefits everyone involved.

The BlueIron model works because everyone has “skin in the game,” so to speak. We have every incentive to get high quality patents and to do so as reasonably quickly as possible. By having a patent portfolio that protects the startups technology additional investment becomes easier to attract, which makes much of the difficult work a startup will do much easier. By helping the innovative startup succeed we succeed. If the innovating startup company is not successful, the investment will only generate patents for products or services that never made it to the market, or which were not accepted once on the market. Patent assets covering technologies the market shunned have little, if any, value. On the other hand, if the startup company is successful the patents have real value – far more value than the cost of financing.

Through the BlueIron model I’ve attempted to create a new framework where both parties have the same goal: protect and grow a successful business. Our sole focus is to build investment-grade patents that have commercial value. By treating patents as “collateral,” our model rises or falls based on how strong the patents are – and how successful the innovative startup becomes.

If you are a startup company that is looking for someone to finance your patent activities please contact me. Candidly, we only invest in patents for operating companies, not for individual inventors for whom the invention is just a hobby. While we invest at a very early stage, the startup must have a financial commitment to bring a product or service to market for us to get involved.

If you are an angel investor or venture capital firm, we are actively seeking formal or information partnerships and relationships.

Facebooktwittergoogle_plusredditpinterestlinkedinmail