What is Intellectual Property-Backed Lending?

Intellectual property (IP)-backed lending is an innovative lending method that helps IP-rich companies unlock their intellectual property’s potential value.

This innovative approach allows companies to leverage their valuable IP as collateral for private funding, unlocking much-needed capital without giving up ownership or relying solely on traditional financial metrics.

Determine The Value of Your Intellectual Property

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Why is IP-Backed Lending Important?

While furnishing a funding transaction for Healthcare, Biotech, or Lifescience companies, we often observe that the value of their Intangible Assets outweighs the value of their Tangible Assets. In some cases, the value of intangible assets is often unrealized on a company’s books. This could be because the company needs to know the actual value of its Intellectual Property (IP), and there are only a few qualified ways of determining a Fair Market Value of the IP. If the IP value gets registered on the books, it increases the company’s book value, which is a massive win.

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Range of Valuation Services for IP

We offer a full range of valuation services for IP, such as Patent Valuation (covers all types of Patents such as Utility, Design, and Plant), Patent Application Valuation, Trade-Secrets, Copyrights, Trademarks, etc.

We hold great pride in our highly detailed and professional IP underwriting. IP underwriting involves two in-house teams of specialists; IP Insurance Underwriters and Capital Market Partners.

IP Insurance Underwriting

This process involves deep analysis on the fronts of underwriting the worth of IP and translating it to an insurable collateralized IP asset. The insurance covers the cost of litigations, appeals, damages, counterclaims, and settlements.

Capital Market Partners

This is the lending arm of the transaction. With IP being underwritten and insured, the Capital Market team, in conjunction with IP Insurance Underwriters, offers to loan up to 92% of the IP value. Adding an insurance component helps borrowers with a flexible and lenient loan with a term of up to 120 months and interest rates as low as 8%.

Patent Disposal

Patent disposal is the strategic process of transferring, selling, or otherwise relinquishing patent rights. It’s a critical aspect of intellectual property management and innovation strategy.

Licensing Patents

Licensing patents is another avenue to generate revenue from your intellectual property without giving up ownership.

This approach is particularly beneficial when you believe your patented technology has the potential for broader application but requires the resources and expertise of a third party.

Abandoning Patents

There are circumstances in which abandoning a patent may be strategically advantageous. We acknowledge that not all patents are worth maintaining, especially if they no longer align with your business goals or if the cost of maintenance exceeds the benefits.

The process of abandoning patents can be complex, with considerations regarding timing and legal implications.

Donating Patents

Donating patents is a philanthropic option that allows you to contribute to the greater good while potentially gaining tax benefits. We recognize that donating patents can be a powerful way to support innovation and education.

Donating your patents to charitable organizations or educational institutions can help advance technology in fields that align with your values. We can provide advice on the tax implications of patent donations, ensuring you make the most of available incentives while contributing to societal progress.

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Structured Financing Options

Asset Based Lending & Revenue Based Financing

Financing offers one-draw term loans, venture debt, and flexible Lines of Credit, including working capital loan, to companies in the United States, Canada, the UK, and Australia. Our financing options are non-dilutive, so founders do not have to give up equity when their business is at the influxion point of growth – while securing the same amount of financing on a low-cost basis.

Unsecured Funding Offers

Asset based funding can take 4-6 weeks to secure, we can offer an unsecured offer immediately so you have access to capital right away.

Mergers & Acquisitions

An acquisition loan is a loan given to a company to purchase a specific asset, acquire another business, or for other reasons laid out before the loan is granted. Typically, a company can only use an acquisition loan for a short window and only for the agreed-upon purpose.

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Confidentiality and Security: We ensure the confidentiality of your intellectual property assets. Our overall IP backed loans processes are done under stringent security measures ensuring your proprietary information remains protected.