Gibbs Intellectual Property Strategist Business Consultants Investment Due Diligence
Disruptive Venture Capital Investment Due Diligence
 
 
   
 
 

 

 

 

 

 
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Gibbs Investment Due Diligence Reports:
  • Order: Request a custom report on any investment targeted company. Just Call.
  • Contents: Easy to understand Executive Summary.
  • Includes: Narrative explanations, Assumptions, Spreadsheets (re-cast company financials), Referenced patents and sources.
  • Intelligence: proprietary business information (not legal patent analysis).
  • Fast: delivered in about two weeks.
  • Deep: 20-60 pages of critical data, patent information extraction, interpretation, and referenced materials.
  • Expert: Developed by past high-tech company founders, Fortune 500 executive, patent owners, and peer-ranked, world's top IP strategists.

Patents not only touch 80% of all operational corners of early stage companies, in the most successful companies, patent intelligence drives corporate strategies and objectives. Our patent information extraction helps investors with:

  • Investment risk mitigation
  • Discovering "diamond in the rough" companies before other investment firms
  • Charting a credible exit path before the investment

Patent-based investment and acquisition due diligence within the domain that your investment target is entering provides clarity on the possibility of not only company survivability, but more importantly, can predict the cost to establish market dominance, and identifies paths to an acquisition exit nearly 2 to 3 years in advance.

Our patent-based investment due diligence process evaluates your target company's business plan to assess positive and negative impacts to the company's overall business operations, and determines the probable impact to the company's planned products, market, and quantitatively evaluated financial projections.

No other method of new venture investment due diligence can uncover these missing critical pre-investment insights:

  • Implicit Analyses : Forecasts future competitors (big and small) that will NEVER appear in the company's business plan.
  • List of alternative technologies that could erode your target company's claimed product / market exclusivity.
  • Risk Mitigation: Get an early read on competitors' patents that your target company’s planned product line may infringe.
  • Predicts your target company's competitive market position 2-3 years out (developed using quantitative methods).
  • Reality Check: Reports highlights any IP-influenced impacts on business plan projections (sales and P&L projections).
  • Reports re-cast your target company’s financial projections, adjusting for inflated (or under-stated) sales projections.
  • Opportunity: See strategically important opportunities observed in the patentable “white space” (technologies, products and patents).
  • Optional patent drafting and assignment of new-found technology opportunities.
  • Report lists patents available for acquisition (affordable relevant patents owned by independent inventors to accelerate time-to-market, and build company's offensive / defensive portfolio).
  • Exit Strategy: Reports present potential, non-obvious acquirers identified through parallel or convergent technology analysis.
  • Maximize value: Qualitatively evaluates the "urgency" potential acquirers have placed on entering your target company's market space (developed using acquirer's historical technology investment and convergent patent trajectories).
  • All analytical information is distilled into an easy-to-understand and apply narrative report.
  • Includes a free 1-hour phone conference to discuss report findings.

Simply put – we're the best in the business in developing the intellectual property based investment or acquisition due diligence information that demanding venture capitalists and angel investors need before investing in or exiting start ups.

WHAT DOES PATENT BASED DUE DILIGENCE LOOK LIKE? (also see Articles)

IP-driven business due diligence takes many forms to support the immediate objectives. Here are some examples of our implicit and explicit extraction of decision-support information through patent-based due diligence.


I. OBAMA'S AUTO TASK FORCE / AUTO BAILOUT REPORT

Our Automaker Patent Assets Intelligence Report was delivered to President Ob ama’s Auto Task Force the week before GM’s CEO Rick Wagoner was asked to step down.
It illustrated a decade of GM's inferior patent strategy in a global Automotive Green Tech market, and contrasted it to Ford’s aggressive patent strategy during decade leading up to the Auto Bailout (26% of Ford’s portfolio was “green tech”, nearly twice GM’s ratio).

Was our due diligence report the tipping point for Obama’s decisions, or simply coincidental? (download the report)


II. BUSINESS START UP FORMED TO DOMINATE US WEIGHT LOSS MARKET
(see full Case Study)

Status:angel investment received, $1 million fundraising under way. Gibbs is providing an interim CEO.

Although Weight Watchers® and Jenny Craig® pull in about $2 ban annually, they represent a mere 3-5% of the US diet market. 80% of the market are "do-it-yourself" dieters who rely on the Internet and diet books.

Using our proprietary technical due diligence and market research, we developed a "no calorie or points counting" weight loss program that weaves it way through the Smart phone camera technology domain, drastically simplifying meal management for the "other" 70 million dieting Americans (51% of which own an Androids or iPhone's).

By developing the business model and seven commercially valuable inventions, we set the stage for the next scalable diet system.

More importantly, we analyzed "competitors" patent trajectories to engineer into the business plan a few possible investment exits through acquisition.

 

PATENTS ARE PROVEN TO CONSISTENTLY RELIABLE PREDICTORS OF PRODUCT AND MARKET TRENDS AND COMPETITIVE LANDSCAPES.


III. DOW JONES VENTURESOURCE®
PILOT CHARACTERIZES PRIVATELY-FUNDED COMPANIES BY PATENT ASSETS

We drove a Dow Jones Venture Source® pilot program to evaluate patent assets of listed companies. We found that while listed companies owned an average of 6.7 patents, 40% of those patent assets failed to claim those company’s most commercially valuable technologies.

Our due diligence reports delivered exclusive insight on where an early stage company’s IP strategy may create business and financial risk, the employment history of the companies' chief innovators, flush out inflated sales expectations, and alerted investors on other companies that were better or more poorly positioned to dominate their respective market segments.

Prior to News Corporation's 2007 Dow Jones take-over, our pilot was on track to deliver robust company-related sorely-needed patent asset information to technology investors - in a seamless Venture Source format.


VI.
WE PREDICTED
THE IN-VEHICLE ROUTE MAPPING MARKETPLACE 5 YEARS IN ADVANCE

In 2008, we conducted patent-based due diligence for a Michigan-based automotive company proposing investing a new in-vehicle GPS mapping system (cellular technology vs. satellite technology).

Auto industry experts, as they were, projected sales of 2.5 million systems (vehicles) by 2011, having a “first mover” advantage over their Tier-1 competitors.

Our due diligence discovered a leading patent filer NOT considered an auto-industry competitor: Goggle.

We advised using licensed Goggle mapping technology as the alternative to R&D investment.

We also suggested that Goggle’s mapping products would be superseded within a few years, and that licenses should be non-restrictive as to future partners.

Two years later (July 2010), GM, Ford, BMW and Mercedes announced relationships directly with Google Maps.

Then, in June, 2012 (nearly five years after our patent-based forecasts), automotive news reported that General Motors, Honda and Toyota were now integrating an Apple Siri button into vehicle steering wheels.

Contact Gibbs when you need the leader in our industry to help you become the leader in yours.