How do I value my code?

I have been asked if I would sell the code to my mobile app for use in a different industry. How do I value it? And am I selling it outright or just licensing it?

  • The best advice I could give you is to have a patent lawyer look at the case. Intellectual lawyers’ have degrees in Engineering and are usually experts in the field of technology. The few hundred bucks you are trying to save by asking for advice on startupsanonymous could mean millions(or more) in potential money for you (or your business) in the future.

    • This is not good advice. OP said nothing about patents.

      Patent lawyers can charge upwards of $400 an hour. They know nothing about your field of expertise. will charge you hourly to learn about it, and can run up bills into 100s of thousands of dollars.

      He is much more likely to run up expensive bills with a lawyer and never sell anything. Most deals like this fall through as selling code is much more difficult than it seems. It’s also really hard to “reuse” code like this, even if it is written really well.

      I’d bet the buyer is probably just fishing at this point and there will be some expectation of maintenance that comes along with the deal.

      Just come up with a number that makes all the grief meaningful, and set your boundaries on what you are willing to do as part of the sale.

    • Find a patent attorney with a background in whatever you built. The comment below is completely wrong, as all patent attorneys have some kind of engineering background. One of our patent attorney was a backend developer specializing in Jade before law school. The right one will be able to evaluate it from a technical and legal standpoint, and advise on how to license it (which is the best model – think Shark Tank royalties – there is a reason why it is so popular). Make money off of every time the code is used, rather than one lump sum.

  • Step 1: If you made it, there is a 99.999% chance that you are overvaluing it.

    Step 2: Get an unbiased evaluation from someone

  • Time is money, you can start evaluate it by the time you made it and say that you take 400$-800$ every 9 hours of work.

    This is a first evaluation to give at least a minimum.

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