Talking with Corporate Strategics – Timing and IP Protection

When to Engage with Strategic Partners

Build Relationships Early, Without Immediately Seeking Funding

Establishing relationships with strategic investors early in your company's development can be highly beneficial, even if you're not immediately seeking investment. These relationships develop over time, and early engagement allows you to align long-term interests and facilitate smoother future transactions. By engaging you gather insights on what the strategic needs to do a deal and then can demonstrate in future meetings your progress (ability to execute on business objectives).

Consider Your Development Stage

The optimal timing depends on your technology's development stage and relevance to the strategic's core business. If your innovation directly aligns with a strategic's core focus, they may be interested in earlier engagement. This requires you to understand the company’s strategy. You can gather this information from public reports, conversations with former executives, and conversations with business development teams.

Note that “early” is a relative term. For some companies “early” might mean “no human data” while for others “early” is anything before FDA authorization.

Demonstrate Credibility with Data

Data wins. Having human data is the best, then animal, then bench. Understand what data the market requires for adoption and demonstrate that you understand what is needed. More data is not always better, though. The right data for the stage of development and market requirements is critical.

Preparing for Strategic Engagement

Do Your Homework

Before approaching strategics, thoroughly research the company and individuals you'll be meeting. LinkedIn is your friend! Connect with sales reps, attend industry and medical society meetings, read public filings. Be clear why you’re your product matters to their business.

Market share and competition

How will your product improve the strategic’s competitive position? Will it allow them to take market share from a competitor? Expand an existing market? Develop a new one? Remember, you’re talking to a business. What is the business value of your product?

IP Protection Strategies

Protect IP Before Disclosure

Apply for patent protection prior to disclosing technical details of your technology. Remember that you cannot patent an invention once it has been publicly disclosed, unless the disclosure was under an NDA.

Clarify IP Ownership

Ensure ownership of IP is clearly documented, particularly in collaborative relationships. The default in many jurisdictions is that employers own IP created by employees, but this doesn't automatically apply to third-party contractors. Establish clear agreements about who will own IP from any collaborations.

Use NDAs Appropriately

Most, if not all, investors will not sign an NDA for an introductory meeting. And many strategics will not, either. It is unnecessary when the purpose is general introductions AND you have IP protection for your products.

Recognize the Challenges of Stealing IP

Ultimately, while it does happen, IP theft is not a regular occurrence with strategics. They are too busy working on their own products most of the time. That’s why they make investments and buy companies. Implement best practices to protect your IP and then get to work.

Startups are hard. We get it. Avio was born in the startup trenches. Founded by a medtech innovator, for medtech innovators, we understand the unique challenges you face. Let us leverage our firsthand experience to accelerate your journey to market.

It will never be easy or stressless, but it can be easier and less stressful.

frank@aviomedtech.com