Advisor Playbook: Introducing Data Licensing During Portfolio Reviews

As an advisor, you play a critical role in identifying growth and monetization opportunities for your portfolio companies. Data licensing, managed by SourceX, can unlock significant value from their existing data assets without impacting core operations or data privacy.

This playbook outlines a practical, step-by-step approach to introducing data licensing during your portfolio review process, ensuring a smooth, compliant, and value-driven engagement.

Step 1: Initial Fit Check – Identifying Promising Companies

During your regular portfolio review, consider companies that meet the following baseline criteria for SourceX:

• US-based operations: The company is headquartered in the United States.
• Employee count: Has 50+ full-time employees at its peak (contractors are excluded from this count).
• Operational history: Possesses years of operating records.
• Data ownership: Holds the necessary rights to license its data.
• Authorized sponsor: An executive within the company is authorized to sponsor data licensing initiatives.

If a company broadly fits these criteria, it's worth exploring further.

Step 2: High-Level Discussion with Company Management

Introduce the concept of data licensing as a potential new revenue stream. Focus on the benefits for the company:

• Monetization of existing assets: Turning dormant data into revenue.
• No operational disruption: SourceX handles the entire licensing transaction process.
• Data privacy: Data is de-identified and aggregated according to their specifications. The partner never handles company data.
• No cost to the company: SourceX's fees are covered by the buyer, not deducted from the company's proceeds.

Gauge their interest and confirm their willingness to explore this avenue. Emphasize that any next steps are entirely voluntary and driven by their strategic goals.

Step 3: Securing Company Approval for Scope and Introduction

If the company expresses interest, seek their explicit approval for two key aspects:

1. Scope of data consideration: Clearly define what types of data they are comfortable exploring for licensing. This ensures alignment and protects sensitive information. Reinforce that personal details are removed and data will be aggregated and anonymized.
2. Introduction to SourceX: Obtain their consent to make a direct introduction to the SourceX team. This is crucial for a warm hand-off and ensures the company is ready for engagement.

Consider this a brief, internal 'Letter of Intent' to explore, where the company signals its readiness.

Step 4: Making the Qualified Introduction

Once you have the company's approval and understanding of the scope, make the introduction to SourceX. This should include:

• Company Name: The full legal name of the referred company.
• Key Contact: The authorized sponsor or executive who will engage with SourceX.
• Brief Context: A concise summary of why you believe this company is a good fit and their expressed interest.

Important Considerations:

• Attribution: Credit for the referral goes to the first valid referrer whose introduction leads to a verified company application within the attribution window.
• Reward Structure: As a partner, you earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, capped at $100,000 cumulative per referred company. Rewards become payable only after SourceX receives its fee.
• Independence: Remember that you are introducing an opportunity; SourceX manages the transaction process directly with the company. Your role is advisory and facilitative.

By following these steps, you can effectively and responsibly introduce valuable data monetization opportunities to your portfolio, enhancing their strategic capabilities while earning significant rewards.

Checklist for Advisors:

• [ ] Review company against SourceX baseline criteria.
• [ ] Discuss data licensing at a high level, focusing on company benefits.
• [ ] Confirm company interest in exploring data licensing.
• [ ] Obtain explicit company approval for data scope and introduction to SourceX.
• [ ] Make a qualified introduction to SourceX with key contact details.
• [ ] Understand reward structure: 25%/$100,000.

Refer a company · How rewards work