How MVIP™ can facilitate your company’s 30-month journey to Maximize Value™, bolster tech sovereignty, build prosperity, and export transformative potential in today’s world

Innovation ecosystems are brimming with potential, but turning groundbreaking ideas into market-ready products and services requires more than just ingenuity. It demands strategic funding, robust intellectual property (IP) management, and a clear pathway to international markets. This journey, often complex and daunting, is crucial for businesses aiming to not only succeed but to prosper and maintain some form of technological sovereignty, safeguarding supply and value chains.

The MVIP™ funding journey presented above comprehensively outlines a company’s typical funding journey, using grants and tax incentives to invest and reinvest in the business. The model creates what is called a flywheel™ and is designed to Maximize Value™ with the use of intellectual property (IP) and fiscal incentives, ranging from grants to new innovation boxes (aka “patent boxes”) where IP is a must. It’s a roadmap that outlines the various stages of development on the journey to maximize value™, highlighting the crucial role of both strategic funding and IP management and governance in achieving sustainable growth and international competitiveness.

The Journey to Maximize Value™:

1. Bootstrapping and Early-Stage Funding: Many startups begin with bootstrapping, relying on personal savings and sweat equity. However, to truly scale, external funding becomes essential. The diagram highlights several avenues for early-stage support, including financing and mentorship opportunities to entrepreneurs.

2. Government Programs and Grants: By way of example, Canada boasts a robust network of government programs designed to foster innovation. Scientific Research and Experimental Development (SR&ED) tax credits, the Industrial Research Assistance Program (IRAP), and the Clean Technology Investment Tax Credit (ITC) are just a few examples of federal and provincial initiatives that provide crucial financial support for research and development. These programs not only alleviate financial burdens but also validate the innovative potential of startups.

3. Intellectual Property: The Cornerstone of Value Creation: A unique aspect of this funding journey is the emphasis on intellectual property (IP). IP creation, which encompasses patents, trademarks, copyrights, and industrial designs, is presented as a critical step. The diagram highlights the importance of developing an IP roadmap. IA/IP-secured lending, facilitated by financial institutions and insurance companies, allows startups to leverage their IP assets to secure funding. This approach not only provides financial resources but also incentivizes the development and protection of valuable intellectual property.

4. Tax Strategies and Financial Optimization: Effective tax strategies play a significant role in maximizing value. Tax incentives for innovation, transfer pricing optimization (adhering to OECD guidelines), and exploring patent box opportunities (innovation boxes) can significantly impact a startup’s bottom line, and further reduce effective tax rates.

5. Export Strategy and International Market Entry: The ability to enter international markets is crucial for scaling and achieving global competitiveness. The diagram emphasizes the importance of developing a comprehensive export strategy, leveraging programs like CanExport and Export Development Canada (EDC).

6. National and International Patent Protection: The 30-Month Deadline Imperative: The journey also highlights the importance of navigating the patent process, both nationally and internationally. The Patent Cooperation Treaty (PCT) system is outlined, providing a framework for seeking patent protection in multiple countries. Crucially, the 30-month deadline for entering the national phase of a PCT application is a critical factor that must be integrated into the startup’s strategy. This deadline represents the time frame after the earliest filing date (priority date) of a patent application within which the applicant must decide in which countries they wish to pursue patent protection.

Why is this 30-month deadline so important?

• Financial Planning: Entering the national phase in multiple countries involves significant costs (translation, local attorney fees, national office fees). Startups need to align their funding and commercialization strategy with this timeline to ensure they have the resources available when needed.

• Business Development: Decisions about which markets to enter often depend on patent protection. The 30-month deadline forces startups to make strategic choices about their target markets and prioritize patent filings accordingly.

• Investor Confidence: Investors often look for strong IP protection in key markets. Missing the 30-month deadline can jeopardize a startup’s ability to secure funding and demonstrate its long-term viability.

• Missed Opportunities: Failing to meet the deadline in a particular country generally means losing the opportunity to obtain patent protection there, potentially opening the door for competitors.

Therefore, startups must proactively manage this 30-month timeline, integrating it into their overall business and IP strategy. This includes:

• Early Assessment: Evaluating the potential markets and the importance of patent protection in each market well before the 30-month deadline.  Startups should already know their potential clients, distributors and partners from whom they will be generating revenue.

• Budgeting: Allocating sufficient funds for national phase entries in priority countries.

• Strategic Decision-Making: Making informed decisions about which countries to pursue patent protection in, based on market analysis and business objectives.

• Professional Guidance: Working with experienced managers to ensure timely and effective national phase entries.

Business and IP Strategy: A Synergistic Approach

Underlying the entire funding journey is the importance of a well-defined business and IP strategy. This involves aligning IP development with business goals, identifying target markets, and developing a plan for commercialization.

Maximizing Value and Technological Sovereignty

By strategically navigating the funding landscape, prioritizing IP development, and meticulously managing the 30-month PCT deadline (for example), companies, including startups, can maximize their value and gain a unique degree of stability in a destabilizing world. This approach not only empowers individual startups but also strengthens their position in the global innovation economy.

Why choose MVIP™?

The “Funding Journey to Maximize Value™” diagram serves as a valuable roadmap for companies looking to launch products. By turning to MVIP™, companies can benefit from all-in-one guidance on the importance of strategic funding, robust IP management, a clear pathway to international markets, and the critical need to align IP strategy with the 30-month PCT national phase entry deadline. By embracing these principles, startups can not only achieve their own growth objectives but also contribute to their respective country’s technological sovereignty and global competitiveness.

This holistic approach, encompassing funding, IP, market access, and time-sensitive IP procedures, is essential for building a thriving innovation ecosystem. By fostering a culture of strategic investment, IP protection, and proactive IP management, companies can become global leaders and drive technological advancements that are profitable and impactful.