CSN talks to Nick Sgobba, Co-founder & Chief Product Officer of Evalify about the importance of carrying out the right checks for investors in start-ups.
What is the problem that your company is solving and why is it important to do so?
Evalify addresses the need for early IP checks in startup investments. By analyzing global patents, the system determines a preliminary Freedom to Operate (FTO) score, helping investors identify potential patent infringement risks before they commit funds.
Evalify is designed to help non-IP experts such as investors and founders make more informed decisions about investing in and developing innovative ventures by identifying potential patent risks and opportunities. Evalify aims to democratize access to patent information, enhance startups with strategic and unique data, and encourage a more informed approach to innovation, especially in the early stages.
What technology/innovation are you bringing to this field?
The rapid growth in global patents (1990: ~31M; 2010: 76M+; today: ~200M) reflects accelerated technological innovation and escalating legal complexities, making it harder for startups to navigate the patent landscape and increasing the risk of inadvertently infringing on existing patents.
Traditionally, IP management has been specialized, expensive, and time-consuming, leading many startups and small investors to postpone thorough IP checks. This is often deferred until faced with major investments or legal issues, by which time the consequences of neglect can be significantly more detrimental and expensive to resolve.
Evalify shifts this paradigm by providing an accessible, self-service, and accurate AI-driven platform that enables patent searches and risk assessments, allowing startups to conduct early IP due diligence. This approach integrates IP considerations into business strategies from day one, lowering future litigation risks and enhancing a startup’s appeal to investors.
We believe Evalify is crucial for innovators and investors in this sector, providing them with the ability to perform quick yet thorough analyses of the patent landscape before committing time and resources on new ventures. This helps ensure that new technologies are not only innovative but also legally sound and viable, avoiding potential patent infringements along the way that could block or limit commercialization.
What stage of commercialization are you at? Who are your backers?
We are active on the market, delivering early revenue and we are backed by Nobody Studios. We’ve carried out more than 180 pilots with users from multiple companies. These include VC/angel investors, founders, incubators, accelerators and research centers with a 98% user satisfaction rate, which we’re very proud of! Some 80% of these companies expressed willingness to transition to a paid engagement, which is also very good news.
On the back of these excellent results, we have recently transitioned to a SaaS-based subscription model for a more stable and predictable revenue stream.
I’m also pleased to say that In August 2024, The LegalTech Fund named Evalify one of the top legal-tech startups for 2024.
How does your product or service contribute to environmental sustainability?
Evalify offers an AI-driven platform that enables investors and non-IP experts to perform patent checks. It makes identifying potential legal issues with new startup ideas quick, affordable, and accurate. This helps avoid costly legal troubles and supports safer investment decisions by ensuring their ideas don’t infringe on existing patents.
From our perspective, the climate technology sector is witnessing rapid innovation, particularly in areas like renewable energy, carbon capture, and sustainable agriculture. This growth is fueled by global efforts to address climate change, leading to an increase in startups, approaches, tech solutions, and patent applications as companies seek to protect their new technologies.
What are the key challenges that you face?
The main challenge is that IP and patent checks are often done too late or as an after-thought. There is a knowledge gap with intellectual property and patents across the startup ecosystem.
What do you need to overcome them?
We are focused on raising awareness and understanding of the importance of assessing IP and patent risk as one of the first things a potential investor would do! We are of course interested in bringing on new clients, but we’re also keen to explore partnerships that develop of our product and profile.
