If your startup idea doesn’t have a core IP, how would you convince angel investors? What are the factors you need to play on?
Krisha has an interesting situation to share:
“I am doing a market research for a innovative outdoor advertising medium, since this is NOT a patentable idea the most common question i have been asked by angel funds is, what is the entry barrier for your idea?
It is very easy for the BIG players to copy this, so request you guys to let me know are there any other entry barriers to protect or fetch royalty from my idea. “ – Krishna
What’s your suggestion? Carry the discussion @ startup forum
I am not sure why investors are so finicky about patents. Most of the patents are really not applicable in India. Anyway, I am in a similar situation.
One of the key things I point out is that my venture will require additional money and expertise for the current players, which they are not willing to invest.
Venturing in to something additional takes that additional share of mind/attention from already busy life of the management team, which in itself is one of the primary reasons most big companies don’t venture out in to something new that frequently. They rather will look at buying you out and look at inorganic growth.
Those were my two cents. Not sure if it applies to your situation, but feel free to message in case you want to brainstorm. I have been answering this questions quite a while. Also, last but not the least, don’t let the fear of someone stealing your idea stop you from executing it. Go for it.
Krishna
Ideas can be patented (meaning your Innovative outdoor advertising), but in India it doesnt matter whether you are the first guy to do this OR not, people will steal the idea and do it on their own…..i suggest you to take it some big Ad agency and sell your idea (IP) to them for a reasonable sum. so that you will have some funds to think of other good ideas
Sure. Anything can be copied. How many services can you name on the web that you can’t copy – facebook, twitter, gmail, yahoo, blogger… there is more to these services than just the technology
Product/technology would generally not be a sustainable source of competitive advantage. You’ll have to look beyond these. From your point of view it could be -
1. Initial traction, customer wins
2. Proprietary distribution channel
3. Unique positioning that bigger guys can’t afford to copy
The question you need to answer HONESTLY is – How will you run this business better than the big guys?
Krishna,
Idea can be patented in many ways… I think your idea can very well fit
into Process patent…the process by which the business will be winning
customers.
There are many IP lawyers around. Just give them gist of what your idea is… they can give directions.
There is one good IP-professor in Bangalore law school named Muralidaran (or Murali )…i don’t have the contacts details but have interacted with him….I can vouch that he won’t copy your idea and give the best way of protecting your idea.
Good luck
Kasi
@Kasi – I am not sure if Process Patent is allowed in India.
Krishna – It would be good for you to double check with an IP lawyer.
Thanks everyone(Titan, Rohit Kapoor, Kasi, Suresh)
for all your valuable feedback.
@Suresh: Was trying to contact the BIG guys from 3 months (but in vain) no reply or contact. So decided to start on my own, and now i have the entry barrier issue..
Please let me know if any of you guys have interacted with
BIG STREET, OOH Media, Laqshya, Clear Channel or any of the OOH guys.
@Titan: Yes, thats correct, I did contact one IP lawyer in mumbai and got to know that process patent is not yet allowed in India.
Guys, so what do you think if I can go ahead and patent in other country. Let me know your valuable comments on cost, protecting of the idea, contradictions of law or similar patent.
Thanks
@krishna – Don’t be too obsessed with protecting the IP. Launch it and see how the target market responds… and then scale fast before big guys realise the importance of what you are doing
Rohit Kapoor says: “and then scale fast before big guys realise the importance of what you are doing”
Scale karna Halua hai kya ?
@realist – thats why I say focus on scaling. more often than not, scale leads to strong entry barrier (think network effect) for competition.
Krishna,
If you think your idea is good and really good and No-one has a patent on that idea … i would recommend do a good prior-art search and then file the patent in PCT…i beleive it would cost no-less than 2-lacs (prior-art, drafting, submission, hearing etc.,etc.,).
Just after filing start your business (if you are thinking of starting).
If you don’t….then,
Either you sell your patent to some BIG-guy.
OR
Wait for few years and see who is infringing your patent and go after them for royalty and infringement
)
Let me warn you patent is a tricky thing… Biggy’s can always get around it quoting some other patent OR similar prior-art.
Kasi
Dont be so obsessed with your idea – unless you have executed.
Ask yourself – do you want to create a successful business or stick with great idea?
Ans will tell you the path.
VCs wont care about your idea (how patentable it is!), unless you have shown the PoC – so go ahead and do it.
Krishna,
Message me at vivek at gatewayadvertisers dot in if you like some help. My cousin just started a OOH company with bus shelters. I have been helping him with his initial sales. We also have a tie up with a major OOH player in Mumbai. If you want I can hook you up with few people here.
@Titan: Yeah, Thanks for the lending hand. Tried to see your website, but I couldn’t find any site named gatewayadvertisers.in
@A VC: Yes sir, i will go ahead, on my way to get the PoC/sample work done. Would be helpful if i can get some contacts(brand managers) where I can approach to show the PoC.
Thanks
Not sure why you did’nt get the site. It is http://www.gatewayadvertisers.in/
Everyone. Repeat after me. Ideas are not patentable, inventions are.
I say Aye
@All
Would be helpful if i can get some contacts(brand managers) where I can approach to show the PoC.
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@All
Would be helpful if i can get some contacts(brand managers) in Bangalore where I can approach to show the PoC.