Posts Tagged: "Private Equity Investors"

How Intellectual Property Informs the Investment in a Private Equity Transaction

Technology and intellectual property (IP) have become vital components to virtually every business in all industries as they often drive the value and efficiencies of a business and enable companies to monetize their products and services. In order to capitalize on this trend, private equity (PE) investors are making significant investments in companies focused on developing and commercializing IP. In 2017, a record number of PE deals were IP and technology focused, ranging from consumer-facing companies with valuations driven by trademark portfolios and brand awareness, to cloud platform and biotech companies with significant patent portfolios and research and development efforts. According to analysts of PE deal-trends, this wave of IP-centric PE transactions has continued and will continue to grow during 2018.

Joint Economic Committee Holds Hearing on Innovation Economy, Barriers to Accessing Capital

One panel witness, Rachel King, CEO of the Rockville, MD-based biotech firm GlycoMimetics, said that she was greatly concerned by the effects of the IPR process and how it weakens the company’s ability to enforce its own patents. “There are very few areas of the nation’s economy that are as dependent on patents as the biotechnology industry,” King said. “Our investors rely on the strength of patents in order to make investments in companies like ours and we need to make sure that these rights are robust and enforceable.” King was very supportive of the STRONGER Patents Act as a piece of legislation that properly addresses the current deficiencies with the IPR process.