Startups are often built around a great idea and a passionate team. But how can startups take that idea from concept to market? One way is through licensing. The licensing agreement creates a partnership between two parties, where one gives the other permission to produce, distribute, and sell its product
Licensing is one of the best ways to grow your startup. Especially if you’ve got intellectual property with big market applications and limited resources, that’s just what one startup does with its battery technology platform. Its patented supercell battery pack design reduces production and manufacturing costs and is safer
When it comes to planning an exit strategy most often it’s the best guess. Especially for startups where a solid exit strategy can make a difference in attracting investors. That’s where creating an exit based on a well-thought-out licensing strategy provides investors with the confidence they need to make the investment.
Joint venture licensing is used by both large and small companies. In the case of large companies, the goal of the JV partnering strategy is to acquire more customers, enter new markets or gain certain efficiencies, such as promotional costs. For startups and early stage companies, joint venture licensing is a good strategy to reduce operational costs and accelerate their growth.
DSL created a multi-billion dollar industry. It was launched into the market by a startup who licensed the technology from a top US university. The IP changed the internet and catapulted this startup into a a world leader. For startups, developing an IP from the ground up is an expensive and risky endeavor. But there is a better way to launch a startup.
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.
Licensing is a great startup strategy to increase your sales and marketing efforts without spending the time and money to do it on your own. This is the greatest use of OPR – other people’s resources. One way is to use licensing to increase your awareness among your target customer
Many startups I speak with often tell me their IP has other market applications, but they just aren’t ready to go after them now. They are concentrating on one market, building sales and then, at some future point (which they don’t know), they’ll move into another market. The problem is innovation moves very fast. Customers and markets don’t wait for innovation.