Intense competition makes firms more open to licensing outside intellectual property. In today’s interconnected market, your competition is no longer your competition. Instead, they are potentially your best business partner.
The ability to raise money is the difference between success and failure for a growing business. Start-ups in particular often find it difficult to raise money. What is often overlooked as a potential funding source is intellectual property.
In licensing, it’s not where the market is today but where it’s going. Licensing is about spotting where an industry and companies are going, and capitalizing on it with your IP. That’s why licensing is such an ideal strategy.
When it comes to developing new technologies, many large companies are finding creative ways of using licensing to partner with startups with promising new technologies. One of the biggest banks in North America is now in the startup funding game. TD Bank Group created a $3 million plus investment fund to provide patent application funding for startups in the fintech space.
When it comes to startups there is more than one way to build your business. But these are often overlooked, especially if you’re wearing your “I’m building a business” blinders and miss other options to get your IP into the market. In most cases, startups choose the direct route. What they often overlook is licensing as a strategy to get them to market.