A Portfolio Team Guide to Data Licensing Introductions

Navigating the world of data licensing can be complex, but for portfolio operating teams, it presents a unique opportunity to add value to your companies. SourceX simplifies the process of licensing data to AI labs and data buyers, and your introductions can be highly impactful. This guide outlines how your team can effectively screen companies, manage introductions, and understand the rewards.

Screening Portfolio Companies for Data Licensing

The first step is to identify which companies within your portfolio are the best fit for data licensing through SourceX. Focusing on suitable candidates ensures your efforts are well-placed and aligns with SourceX's needs.

Key Criteria for a Strong Candidate:

• Location and Size: We focus on US companies. A strong candidate typically has 50 or more full-time employees at its peak (contractors are not counted). This indicates a certain scale and operational maturity.
• Operating History: The company should have years of operating records. This demonstrates stability and a potentially rich dataset accumulated over time.
• Data Rights: Critically, the company must possess clear rights to license its data. This ensures a smooth and legal transaction process.
• Authorized Sponsor: There needs to be a designated individual within the company who is authorized to sponsor and drive the licensing initiative. Their engagement is vital for successful engagement.

By checking these points, you can quickly filter your portfolio to present the most promising companies.

Securing Sponsor Authorization and Avoiding Duplicates

Before making any introduction, it's essential to secure the authorization of a key sponsor within the portfolio company. This person will be the primary point of contact and decision-maker regarding data licensing efforts.

Best Practices for Introductions:

• Gain Explicit Approval: Always ensure you have explicit authorization from the company's sponsor to make an introduction to SourceX. This confirms their readiness and interest.
• Coordinate Internally: Within your portfolio team, establish a clear process for managing referrals. This helps prevent multiple team members from referring the same company, which can lead to confusion and potential loss of attribution.
• First Valid Referrer: Remember that credit for a referral goes to the first valid referrer whose introduction leads to a verified company application within the attribution window. Careful coordination minimizes the risk of duplicate referrals.

Understanding the Reward Structure

Your efforts in making qualified introductions are directly rewarded. It's important to understand how these rewards work and what to expect.

• Reward Rate: Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals. This is a share of SourceX's revenue, not deducted from the company's proceeds.
• Reward Cap: Rewards are capped at $100,000 cumulative per referred company. This means for each company you refer that successfully licenses data, your total earnings related to that specific company will not exceed $100,000.
• Payout Trigger: Rewards become payable only after the buyer pays and SourceX receives its fee. A lead, meeting, or signed agreement alone does not trigger payment.

Illustrative Example:

Let's say a referred company enters a licensing deal. If SourceX collects $10,000 in fees from this deal, and the reward rate is 25%, you would earn 25% of $10,000. If over time, through multiple licensing deals, the cumulative fees SourceX collects from this company result in total referral rewards approaching $100,000, that cap would apply.

By following this guide, your portfolio team can systematically identify, qualify, and introduce companies to SourceX, unlocking new revenue streams for your portfolio and earning rewards for your team's valuable insights.

Refer a company · How rewards work