Technology & E-commerce
Many are funded initially by the inventor but as the business matures there will often be external investment frequently with complex ownership structures and agreements.
These businesses will sometimes struggle after the initial investment to secure additional rounds of funding. The reluctance to invest might be due to unproven efficacy of the technology, slower than anticipated development or pay-back periods, or a change in investment criteria for funders. An inability to secure funding may lead to such businesses facing a procedure, be that solvent or insolvent.
It is often vitally important for the stakeholders concerned, to preserve and protect the value of intellectual property that has been developed in the business. This will often involve a sale to either someone connected with the business or to a third party. There can be added complications surrounding the ownership and licensing of intellectual property, this is frequently seen when technology has initially been developed in a university setting.
Where intellectual property is subject to a patent or otherwise protected, it may be important to maintain those protections and understand whether there is an ongoing use for the technology either in its current application or whether could be used in an alternative scenario, and therefore what might be the best method to preserve the protections it has been afforded. For intellectual property not currently afforded protection consideration needs to be given to the best method of preservation, protection and realisation of that asset.
It is also important to recognise that alongside the technology will be the know-how and expertise of the people that have developed that technology and how often those individuals are vital to the smooth transition of ownership.
To deal with technology related businesses to achieve the best outcome for stakeholders businesses will need rely on insolvency practitioners with genuine expertise in this area. If you would like to speak to one of our technology specialist please contact Sandra or Sue. Alternatively, one of our team for an initial discussion.