However, it is not enough to collect and graph published patent data to obtain insights that will improve the odds that you will make the right venture capital investment decisions. Rather, specific business-focused data collection and analysis methodology is necessary for successful utilization of patent data for investment decisions. In my experience as an actual purchaser of patent analytics costing upwards of $20K per business question, I found that those collecting and analyzing the data had no basic understanding of the business question that my company needed answered. As such, the products of these patent analytics providers were effectively useless to answer our business team’s investment and innovation questions. I learned an expensive lesson about patent analytics: the data collection must be based upon the right foundation for the results to have any value. Put another way, with patent analytics it is “garbage in, garbage out.”
In the context of venture capital investment, information is undoubtedly power that can fuel your decision-making process. But before you spend good money on patent analytics to improve the odds of your venture capital investment decisions, you must ensure that the data and insights you obtain are based upon methodology that extracts business insights from patent filings. Selection of the wrong methodology could be worse than not conducting patent analytics at all because your investment decisions could be influenced by information that provides the wrong business conclusions. Only those methodologies that are founded on methodology that extracts the business purpose from patent filings can provide you with investment-grade insights from patent filings.
For more information on what methodologies will give you the right information, contact me at firstname.lastname@example.org