MultiverseEnterprises

Investment · 1 min read

Preparing your IP for investor due diligence

Investors will ask what you own and how it protects your business. Here is how to have the answers ready before they ask.

For many technology companies, intellectual property is a large part of what investors are paying for. Due diligence will test whether the IP is really owned by the company, whether it is protected and whether anything could get in the way.

Start with ownership

The most common problems we see are ownership gaps: founders who created IP before the company existed, contractors who never signed an assignment, or university collaborations with unclear terms. Check that every person and organisation that contributed has assigned their rights to the company in writing.

Build an IP register

List every asset – patents and applications, trade marks, designs, domain names, key software and important know-how – with its owner, status, countries and key dates. A clear register immediately shows investors that the company is organised.

Gather the agreements

Collect signed copies of employment and contractor agreements, licences in and out, collaboration agreements and NDAs. Missing or unsigned documents are easier to fix before diligence than during it.

Check freedom to operate

Investors may ask whether third-party rights could stop you selling your product. You do not always need a full formal opinion, but you should understand the main risks in your field and have a view on how to manage them.

Explain the story

Finally, prepare a short, non-confidential explanation of how your IP supports your competitive position: what it protects, why that matters to customers and how it fits your growth plans.

Doing this work early does more than smooth a funding round – it puts the business in a stronger position for partnerships and, eventually, an exit.

This article is general information, not legal advice. For advice on your situation, get in touch.

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