Protecting Tech IP to Protect Your Valuation: What Investors Expect to See

When a technology business seeks funding or prepares for sale, one of the first areas investors examine is intellectual property (IP). They want to be certain the business owns the core technology it relies on and that competitors cannot easily imitate it. A strong IP position helps build confidence in the business, while uncertainty can slow progress or negatively affect valuation.

Thinking about IP early makes these conversations far more straightforward. When ownership is clear, protection is in place and documentation is organised, the due diligence process tends to be smoother and less time consuming.

What investors look for when assessing IP

Intellectual property extends well beyond patents. It can include code developed in-house, branding and product identity, platform features and proprietary methods, as well as data and the rights governing its use. Investors want clarity about two things: what the company owns and what restrictions might apply. If a contractor has retained rights in part of the product or if a brand has not been checked against existing trademark registrations, that raises questions during due diligence.

When these issues arise late in the process, time and confidence can be lost. Resolving them earlier avoids tension at a point where the business should be moving forward.

Strengthening IP protection before investors ask

A helpful approach begins by reviewing existing assets and whether they are properly secured. Employment and founder agreements should contain clear IP assignments. Supplier contracts must not leave room for competing claims. If branding underpins market reputation, trademark protection becomes an important step rather than something to consider later.

Good record keeping also matters. For example, when open source software is used within a product, the licences involved need to be understood so that they do not restrict future development or commercialisation. These points are common areas of due diligence, so preparation is time well spent. Particularly for those prioritising IP protection for tech businesses ahead of investment.

Presenting a clear and confident IP position

Businesses that take time to protect and document their tech IP are often viewed as more organised and scalable. When investors can see the value that has been created and the rights that protect it, discussions move more efficiently. And what is important – founders stay in control of the narrative.

That preparation also gives a business flexibility. Whether entering a new market, licensing technology or planning a sale, confidence in the IP position supports strategic decisions rather than slowing them down.

How mlplaw supports technology businesses

mlplaw’s Commercial team help tech founders and leadership teams understand, protect and maximise the value of their intellectual property. This includes reviewing existing rights, tightening contractual protections, registering key assets and preparing IP for investor scrutiny.

For technology businesses ready to scale, early advice helps avoid surprises and supports a smoother process when opportunities arise. If you would like to review your current IP position or prepare for future investment, speak to our Commercial team at mlplaw. We are here to help you protect the value you have built.