This post is first in a series on startup IP issues.
Any startup raising money gets questions from investors about their unique product capabilities – their competitive edge – and their strategies to keep that edge. It’s an important question because it gets to the heart of the issue of value creation.
Historically, answers have included descriptions of their “secret sauce” and their IP strategy, which frequently centered around patents. That’s a good answer that has triggered many investments – resulting in startups that grow, create value in the marketplace and generate a good return for the workers and the investors.
Starting March 16, 2013, it’s the wrong answer.