News and Analysis of Artificial Intelligence Technology Legal Issues

Evaluating and Valuing an AI Business: Don’t Forget the IP

After record-breaking funding and deals involving artificial intelligence startups in 2017, it may be tempting to invest in the next AI business or business idea without a close look beyond a company’s data, products, user-base, and talent. Indeed, big tech companies seem willing to acquire, and investors seem happy to invest in, AI startups even before the founders have built anything. Defensible business valuations, however, involve many more factors, all of which need careful consideration during early planning of a new AI business or investing in one. One factor that should never be overlooked is a company’s actual or potential…