Crowdfunding: Fundraising for Startups from the General Public

As high-tech startups are booming in China, many of them seek investments from the public through crowdfunding platforms. In 2016 alone, these platforms in China provided nearly $1 billion. China IP News contacted Finnegan attorney Mandy J. Song for her suggestions on IP issues related to crowdfunding.

Song said, "Investors value three things when investing on a high-tech startup: management team, product and market, and intellectual property." She emphasized that innovations are not counted as assets of the company, until they are protected with intellectual property rights. Because crowdfunding platforms typically require companies to disclose their technologies in detail, Song suggested filing patent applications before such public disclosure and listing any issued, allowed, or pending patent applications with the crowdfunding platforms.