Foresight Newsletter: 2014 IP Valuation Trends


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Foresight February Newsletter - 2014
Hello Colleague,                                                              
Happy New Year! We’d like to take this opportunity to thank you for your support in 2013 and wish you a wonderful and innovative year in 2014! We hope this year has started off on the right foot for all of our colleagues and cilents. We look forward to collaborating with all of you in the year ahead.

We launched the year off with the first of a series of blogs on IAM (Intellectual Asset Management) Magazine, a leading global publication focusing on intellectual property matters. Below is an excerpt from the article.

"Just when it seemed as though start-up valuations had peaked in 2013, the year 2014 has started with an opening shot in the form of the reported US$3.2 billion acquisition of Nest Labs by Google. It now looks as if this year will bring about perfect-storm conditions, which will sustain the high-valuation trend. But are we in the midst of a 'valuation bubble'?" 
Read full article »

Newsletter Highlights:

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-Crowdfunding & the JOBs Act-

The ‘Jumpstart Our Business Startups’ Act, otherwise known as the JOBS Act, hit another milestone with the recent lifting of the 80-year ban on solicitation. At our last count, there were over 1,000 crowdfunding platforms awaiting the US-wide equity crowdfunding ‘Title III’ SEC regulations, anticipated to be released in 2014.  At the same time, reward-based crowdfunding is hitting all time records, with major players such as Indiegogo and Kickstarter helping startups raise millions of dollars.

Both types of crowdfunding platforms have been hailed for making funding more accessible to early-stage startups. Over $2.7 billion has been raised in more than one million campaigns across all types of crowdfunding platforms in 2012, an increase of 81 percent over 2011.  However, little has been written about the fundamental implications such campaigns have on intellectual property (IP) protection and on startup valuations, two areas that are critical to the survival of every startup.

At last year's LES Annual Meeting, Foresight's President Efrat Kasznik partcipated in a mini-plenary
session which explored the impact that the JOBS Act is expected to have on the future of innovation in Cleantech and Nanotechnology. The panel identified the key technology trends in these industries, and the unique challenges related to funding and commercializing innovation as these industries follow the path from early stage to maturity.
For full coverage and key takeways, read here.

Crowdfunding 101: Don’t forget to protect your idea 

-Crowdfunding 101: Don't Forget to Protect Your Idea- 

The topics of crowdfunding and IP protection has caught the attention of several technolgy focused media outlets, including VentureBeat, who dedicated a full article to these topics.
Read entire article here.


-Crowdfunding, the JOBS Act, and the Future of Innovation Funding- 

Foresight will round off the series of crowdfunding events with a panel co-hosted by the LES Silicon Valley Chapter next month in Palo Alto, CA

Featuring a cross-disciplinary group of crowdfunding, IP, and valuation experts, the panel will discuss regulatory issues, trends, and challenges associated with these game-changing funding platforms. The panel will address some of the fundamental implications that crowdfunding campaigns have on IP protection, startup valuations, and the innovation cycle. We hope to see you at this event! More details to come in our next newsletter.

-Foresight in the Media-

 Co-founder Patent Lawsuit Against Square

"Intellectual property expert Efrat Kasznik said this is a problem that many tech companies grapple with. “This story goes to the heart of inventorship rights,” said Kasznik in an interview ... Kasznik sees parallels with this case and a lawsuit against the founders of Snapchat."

 Importance of IP Protection in Telecom Industry

“Redstone may think it is the only one with this idea, but it has been documented in many studies that markets go through ‘simultaneous innovation’ cycles, when many people think about similar ideas around the same time,” Kasznik said in an email to VentureBeat. “This [telecommunications] is an industry with a lot of patents held by some very strong IP holders, and one cannot walk into an industry like that with no patents.”

-Internet of Things-

Google’s recent acquisition of Nest Labs for $3.2 billion is one of the first major acquisitions in the emerging market of Web-connected things, known as the Internet of Things (IoT). IDC estimates that the number of connected devices will grow to 212 billion by 2020, with about 30 billion devices smart enough to operate without human control. A study by General Electric concluded the IoT market over the next 20 years could add as much as $15 trillion to global GDP, which is roughly the size of today's U.S. economy.

The Internet of Things represents the vision of a connected universe where objects, devices and people will all share a common network of communication. The IoT market is expected to create new challenges and opportunities when it comes to intellectual property.

 Leading companies including AT&T, Cisco, GE, IBM, and Intel are working with US government representatives to form a consortium to define an architectural framework for open industry standards that would cover a broad set of market sectors, from automotive and manufacturing to healthcare and the military.

LES USA-Canada has just added a special panel featuring trends in IoT to its lineup of events for the upcoming 2014 LES Mid Year Meeting in New York, NY taking place March 25-27th. Moderated by Foresight President Efrat Kasznik, the panel will feature executives from leading corporations including GE, AT&T, IBM, and ARM, all companies with IoT integral to their corporate vision. 


-About Us-

Foresight Valuation Group offers a full suite of services designed to help our clients increase their bottom-line results through valuing, strategically managing, and monetizing their intangible assets.
Foresight Valuation Group LLC
425 Sherman Avenue Suite 200
Palo Alto, California 94306
Tel: (650) 561-3374

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