Intellectual property is a prime asset for investors in tech ventures, but few realize how vulnerable it is to attack as growth starts to happen. So explore these five questions first with potential targets, says Mathias Karlhuber at Cohausz & Florack

Mathias Karlhuber

Investors in tech ventures are well aware that their returns largely depend on a target’s portfolio of IP. However, they sometimes fail to appreciate that it may not necessarily protect them against IP-related attacks by direct competitors, let alone by non-practising entities (NPEs) or trolls, particularly once growth starts to happen and visibility in the market rises. If a target’s portfolio is only mapped onto its own products and services, it typically falls too short in covering the IP risks. When a product infringes someone else’s rights, it can jeopardize an entire investment. So it’s worth exploring these five questions upfront.