Have a Good Idea- What to do?
Hey Boys, I am posting here under a new name to preserve anonymity.
So, I have a good idea and have started developing it. I have shared it with a few select sources (I am very wary of this idea being stolen). I have been encouraged by multiple sources to patent the idea ASAP.
I searched the patent database and there is nothing like it, so i am in the clear there.
My question is two-fold:
- The patent process seems complicated and I know you are encouraged to get a lawyer to help. However, I dont have the funds for this at the moment. Anybody have any advice/know any good ways to get patent advice?
-I am pretty confident in my idea and dont want to wait to start it up. However, i do not have enough capital to start it in earnest at the moment. What are my options? Pitch to VC? Another other options?...I would prefer not to give up a huge equity stake if I didn't have to...
Thanks for the advice, anything will be appreciated..
BTW a pat on the back for anyone that can make sense of my username!
If all you have is an idea at the point, with no tangible stats or results, it is going to be tough to pitch to a VC unless you have a connected way to get your foot in the door.
Your best bet is to find someone you trust that can give you some seed money. If you go to a VC, your not going to be able to get the sort of equity arrangement you hope for as well.
Better to put it in PE/VC forum thread to gain more visibility by fellow monkeys
Another idea: ask your college alumni who are in PE/VC industry. i am sure they must have come across this siutation lot of times
cheers
Unfortuantely I dont have stats at this point. I am in the idea phase but have described my idea to the level where it could be patented (as a business process). No i am looking to hire some pople on a short term contract basis to help me build out the infrastrcuture.
Fortunately I do have two good contacts in VC that would hear my idea.
What kind of equity share do VC's typically take in the earliest funding rounds?
Maybe I need angel investors?
You hit the nail on the head. Get some Angel investors. Getting a patent isn't THAT expensive.
Without proof of concept, sales, business plan, or any of your money invested VC will be impossible unless you are a successful serial entrepreneur with a proven track record.
I started my own company straight out of college and flew around presenting to angel investors and VC’s. I ended up being to small for a lot of VC’s and money was tight in 08 for angel investors. I had some sales record and proof of concept but no patent. The advice I got from a few law school professors and attorneys was that much like anything else, with a patent you get what you pay for. A lot of the cheap 5K or DIY patents are worthless in court. They also pointed out that if some one did steal an idea and you didn’t have any capital to take them to court you would be screwed anyway.
Look at Crocs, they had patents to high hell but that didn’t stop anyone from ripping their idea and even putting knock offs in stores. I heard some crazy stat that the Crocs company was involved in something like over 150 lawsuits at one time. Did that stop anyone from stealing their idea? No.
Through my experience and every thing I learned in B-School, a patent is not a competitive advantage. Execution is. You have to be able to implement you idea/service/company better than anyone else could. A patent only protects you in court, not in the market place.
I remember talking to my entrepreneurship professor and not wanting to disclose my idea to the class room because I was afraid of someone stealing it. He quickly pointed out that my fear was dumb, and ideas are a dime a dozen, companies live and die by execution, not ideas. If someone told you about a foam shoe company 10 years ago you could have stolen it, but you couldn’t execute like Crocs. Or 10 years ago a portable music device called an ipod, there were already mp3 players, it was not the idea but the execution and brand that set them apart.
Point is don’t focus on protecting your idea. Regardless of VC’s non competes or patents anyone can seal your idea. Focus on executing better than anyone else can. That is what sets people and companies apart.
check out a number of incubators/accelerators on google search. theyll fund you if you have a great idea/potential and take ~6% equity share in exchange for the money
You need an angel invest/family and friends. VC's are looking for early stage businesses, not ideas. Angels are the ones who get you started.
.... I think.
Et aut incidunt qui aut laboriosam officiis consequatur laboriosam. Nobis ullam alias fugit vel excepturi. Quia non quo eveniet pariatur tempora non optio sint. Ut nostrum itaque aperiam ipsum quia et.
Fugiat iusto consequatur sed dolor et similique. Molestiae dolor nihil deserunt et similique et. Similique explicabo commodi praesentium voluptatem consectetur eos.
Nobis itaque velit rerum aut delectus enim. Minima consectetur et omnis tempora saepe sequi aut.
Asperiores rem amet dolorem quaerat. Rerum laborum cupiditate cum veritatis rerum. Quae sit adipisci error voluptatem voluptatibus vitae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...