This article initially appeared on the IPWatchdog.com website November 2, 2013
Some inventors turn to 3rd-parties for help, seeking to avoid the ego-mashing, time, and effort that seem to accompany every capital-seeking attempt. More often than not, however, they find the relationship expensive and unsuccessful. Successful efforts invariably require the inventor’s involvement as well as access to individuals who can “pull the trigger” on investment – who you know can be just as important as the product’s viability. Professional advisors may ease the process and improve your chance of success if they possess the following:
- personal contacts among the sources whom you seek to solicit
- an understanding of the intricacies of negotiation
- prior successful experience raising capital or licensing inventions
- your best interests
Whether paid by fee up-front or contingent, or as a percentage of your final arrangement, any advisor should represent you, not the potential investor.
As the girl in the fairy tale ruefully remarked, “You have to kiss a lot of toads to find a prince!” Raising capital is not much different and is often a difficult, tedious, and frustrating process.
Common sources of capital worth pursuing include the following: