Financing · Ip

Collateralized IP Financing

Daniel Eberhard CEO, Koho

March 12th, 2014

Has anyone gone through the process of financing using collateralized IP? 

We have a patent body consisting of 13 in the US (11 approved) and a series of internationals. I've gotten part way through the process before and we are considering revisiting it. 

Looking to, 

a.) connect with people who have/are considering IP financing. 
b.) Learn more about common pitfalls
c.) Understand the long term implications 
d.) Understand common/fair terms
e.) Recommendations on credit enhancement firms

For those unfamiliar, its an interesting trend, good introductory article here; http://www.grr.com/download/publications/final_articles/jk-ms-genIP.pdf

Thanks in advance, 

Robert H Lee

March 12th, 2014

Financing with collateralized IP is essentially no different than with others types of collateral. Perhaps the only idiosyncratic issue is that the value is difficult to determine/agree upon. You may believe your IP is worth $50M and your funder may believe it is only worth $5. If you can come to some sort of meetings of the minds on this, then it's a perfectly legit strategy. Regards, Robert Lee Startup Consultant & Investor at SV Accelerator Entrepreneur-in-Residence at Stanford ∩ of Technology & Adventure at *flØwstate * +1.510.427.2049 - California