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Ask HN: How to sell our IP?
My cofounder and I have a payments startup that couples consumer-facing ACH with international payout. We’ve raised about $500k of convertible debt, mostly in chunks of $25-50k from angels (a process that can only be described as excruciating). We’ve both been C-level execs at startups with > $30M in revenue and successful exits, but we’ve had a difficult time raising institutional money - partly because of where we’re located, and partly because we’ve done a poor job of telling our story.
We’re set up for consumer-facing ACH, with a nice KYC process (custom Yodlee integration, mobile photo id upload). We have a very favorable banking contract - an FBO account with great pricing, generous limits, a direct-to-Fed ACH provider, and terms that may allow ACH cryptocurrency conversion. We also have the ability to pay out to about 30 countries in South America, Africa, and Asia. The flow of funds is completely automated including reversals. It’s a modern code base : Golang/Redis/Postgres on AWS (~120k LOC).
We’ve just launched the product in beta, and have about a dozen SMB customers but we’re completely broke. Our product is somewhat differentiated (other unique features, not relevant here), but given the increasingly crowded payments landscape, we feel we’d need a 7-figure raise to make a go of it, and that doesn’t seem likely in the short term.
With that in mind, we’d like to see if we can find a home for the codebase. Given the rapidly expanding number of companies doing consumer-facing ACH, we feel the product probably has value to someone, but we have no idea how to find them. Normally, a well-connected VC would help with this. Suggestions??
- bob_theslob646 9y agoI suggest you do a search of all the VC'S that specialize in financial services and start shopping around. Another idea is to try and sell to a competitor as a way for them to strengthen their patent portfolio and potentially work for them.
- doug1001 9y agothere are companies who specialise in this sort of thing--ie, IP brokers, i suppose is what they are. for a flat fee (or a piece of the action) they will search for licensees for your IP. The largest such firms don't really do any "searching" because they have built a permanent marketplace of licensors & licensees. the shop i know about is yet2.com; yet2 was started around 2000 by Ben DuPont. I have not done business with them, nor do i know anyone who has
- slingcode 9y agoThanks for the tip!
- shapiro92 9y agohey @slingcode can you send me an email here hqcx7@slipry.net its a burner email address so I dont put my real one online.
- slingcode 9y agoSent
- matt_the_bass 9y agoHow many employees are you? What are your plans for them?
- slingcode 9y agoFive employees. Developers can stay on if needed.