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Should I license my IP, sell a royalty stream, or just produce products?

Berkonomics

Since I am a proponent of using equity as a tool and he is so much opposed, this week it is his turn to make the case. The license to use your IP can be in the form of a one-time payment or structured as a continuing fee. If a continuing fee, the license could be based upon units of the product incorporating your IP.

IP 136
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Should I license my IP, sell a royalty stream, or just produce products?

Berkonomics

Since I am a proponent of using equity as a tool and he is so much opposed, this week it is his turn to make the case. The license to use your IP can be in the form of a one-time payment or structured as a continuing fee. If a continuing fee, the license could be based upon units of the product incorporating your IP.

IP 120
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OpenGate Capital Buys Latin American System Integrators

socalTECH

Los Angeles-based private equity investor OpenGate Capital reported Monday that it has acquired two, Latin American information technology system integrators. Both businesses provide Internet Protocol (IP) and Unified Communications (UC) systems integration services across Latin America. READ MORE>>.

Capital 180
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What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

The founders could reinvest this in growth (0% tax, focus on future equity growth) or take the profits of $12 million and divide amongst the founding partners. You own the IP you create. My advice wasn’t to shut down all product / IP initiatives but rather to be clear on their purpose and how to monetize them.

Services 332
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What Are We Talking About When We Talk Valuation?

Tech Zulu Event

Do you see the overlap with the factors that come into play for equity valuations? evidenced by a written report that takes into account the relevant factors prescribed for valuations generally under these regulations.”. Recent equity sales i.e., comparables. What impacts a company’s 409A valuation: Company milestones.

IP 40
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

I have long tried to raise awareness of the trade-off between growth & profits as outlined in this much read blog post on the topic (and please forward to your favorite journalist who often simply report that companies that aren’t profitable are bad). So money spent should add equity value or create IP that eventually will.

Startup 383
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A Few Key People Really Can Make a Huge Difference

Both Sides of the Table

It has the dual technology patrons and yet the consistent story I get is that they’re not actively out embracing the startup community, helping local successes emerge, getting comfortable with the symbiotic benefits of some employees going to startups that innovate at a different pace and then buying up local teams, talent & IP.