Credit: Shutterstock photoPat Patnode, President of GE Licencsing & Technology Ventures, GE Ventures
1. How did get your start in the venture capital community?
I joined GE Ventures from GE Global Research, where I held a number of legal roles, each revolving around technology and innovation. GE recognized the different ways a VC Community could help incubate, nurture and launch innovation. I wanted to be part of this collective of innovators and help them figure out how to put GE's large and diverse portfolio of intellectual property into the world and create a commercially viable licensing strategy. I jumped at the opportunity to introduce a licensing practice that went beyond traditional patent licensing- tapping into knowhow and core IP, and driving real strategic value.
2. What's a day in your life as a VC like?
My team and I are creating a licensing model for the future. We provide our partners with access to GE's vast technologies for them to use in innovative ways, helping them accelerate their own technology development and differentiating them in the marketplace. This means our team spends a lot of time building our network - outside and inside GE- identifying new opportunities, finding the right balance between execution and growth, and exploring more contemporary ways to express the value of licensing for a company like GE.
3. What kind of programs and activities is a licensing professional focused on in a CVC?
Today, we help others identify how best to apply GE's current IP in tandem with our proven business practices to create sustained value. Because we are part of a GE Ventures organization and embedded in an entrepreneurial ecosystem, we can access markets, structure and intellect that allows us to take a more creative approach to monetization: from traditional patent licensing, where access to IP is granted in exchange for royalties, to novel business model creation which leverages IP as an accelerator for technology validation, as well as strategic channel partnerships for technologies appealing to emerging ecosystems (IP in exchange for an equity stake).
Here is an example: PFS Phosphor is a technology developed by scientists at GE Lighting and GE Global Research that, when packaged inside an LED, vastly improves the color and crispness of images on cell phones, tablets and televisions. We licensed that technology to several big players in the display industry to manufacture and package LEDs for use in a wide range of display products.
4. What stage do you focus on and how much capital do you look to deploy for each portfolio addition?
We have access to proven technologies and knowhow across many different technology domains. We take a very holistic approach to value creation and mostly start by looking at the risk profile as it relates to our businesses and maturity of our technology to determine the best approach. Our goal is to protect and advance GE's technology edge, while capitalizing on past R&D efforts, validating market potential or creating new businesses.
5. What matters to you most when evaluating a company ( a partner ! ) as a potential fit for your firm and how does that relate to the ambitious companies that you have worked with in the past?
Good licensing deals are the ones where we find a great home for technology with a partner that understands the value of the technology and has a vision for realizing its potential. We focus on finding channel partners that can help us build business models, create teams, raise money and bring the technology to market. When choosing that partner, we mostly look at reputation, team capabilities, and how the team is positioned for success. We need partners that we can trust and feel comfortable doing business with, which is particularly important when you are dealing with technology transfer. We also ask ourselves, does this partner have the expertise to help this technology or company grow and win in the marketplace? That is ultimately our criteria for success and financial gains.
6. What advice do you offer to a first-time founder?
Scale at the right pace. Make progress towards commercial goals at a pace that doesn't put you at risk. Don't be afraid to make the necessary pivots to continue your march towards success. Be a responsible leader. Hire carefully and surround yourself with thoughtful, energetic team members.
7. What is the one common denominator that stands out to you across all great investments your firm has made during its history?
We have launched several companies over the last couple of years. Time and time again, we realize that technology needs to go in concert with hiring a great team with vision. Finding the right leaders with the right tenacity, who can rally around new opportunities, set critical milestones and realize that the road to success is not linear.
Pat Patnode is President of GE Licensing & Technology Ventures, leading a global team in developing new commercial opportunities for GE's vast portfolio of intellectual property. The Licensing & Technology Ventures team provides business partners with access to GE's technologies for them to use in innovative ways, helping them accelerate their own technology development and differentiating them in the marketplace through licensing, joint development partnerships and new company formation. Prior to becoming President of Licensing & Technology Ventures, Pat was GE Ventures General Counsel, managing the team responsible for all legal and compliance needs for the various Ventures business units. Pat's experience spans numerous industries and subject areas including securities, intellectual property, complex commercial and licensing transactions and litigation. Pat joined GE Ventures from GE Global Research where he served as the Chief Compliance Officer, managing compliance for the GE Global Research Centers around the world. Pat received his Juris Doctorate from Albany Law School and his Bachelors in Mechanical Engineering from Clarkson University.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
