Definition
Defensible IP
Proprietary data, SOPs, chemical formulas, machine configurations, and operational playbooks that cannot be replicated by a competitor running the same foundational AI model. The moat that makes a niche AI product acquisition-resistant and justifies enterprise pricing. Josh Furstoss's second checkbox before starting any new company.
From the episode “Everyone Is Building AI Wrong”Hear it on the podcast1 episode
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Related terms in Startups & Fundraising
Competitive MoatA defensible advantage such as IP, proprietary data, or network effects.Crowdfunding (equity)Raising capital from retail investors, regulated in the UK by the Financial Conduct Authority; Cornish Lithium used Crowdcube across multiple rounds.Data flywheelEach use generates data that improves the product, which drives more use and more data.Defensibility ScoreA live metric used in Wildwood's pitch scoring sheet to evaluate how protected a startup's business model is from replication. Scores have declined industry-wide as AI lowers the cost of building software.Defensive PublicationA deliberate strategy of publicly disclosing an invention without filing a patent, specifically to create prior art that prevents competitors from obtaining a patent on the same idea. The disclosing party waives any future patent rights but ensures no one else can obtain them either — the invention effectively enters the public domain immediately. Used when a company wants to operate freely in a technical space without the cost, time commitment, or disclosure-and-expiry constraints of a patent. Ophir describes this as one of SenseIP's emerging capabilities: helping companies identify which portions of their IP to publish defensively rather than patent.Delaware C CorpThe default entity structure for startups planning to raise venture capital.Design partnerAn early customer who helps shape a product, often in exchange for access and influence.Design Partner ProgramAn early-access cohort of customers who help shape a product in exchange for founder-level pricing and direct access to the builder. Chime's program caps at 25 seats at $39/month locked in for life.