Innovative companies today are using new and exciting leveraged financing options that articulate the value of their IP.
IP Backed Non-dilutive Financing Program
Our independent third-party IP valuation services help clients take advantage of non-dilutive lender and investor financing opportunities.
VALUE PROPOSITION - IP VALUATION CREATION STRATEGY
IP Strength (IP) Profile
A strong IP profile represents greater value contribution to a company’s core technology and product platform.
Technology Readiness (TR) Profile
The TR profile is intended to demonstrate a Company’s technology readiness (design, development and deployment) in determining related market entrance and acceptance risk. The probability of negative market consequences is presented if core technology is prematurely introduced to marketplace.
Measurable Economic Benefit
For an IP asset to have a quantifiable value, it should generate measurable amount of economic benefit and enhance the value of other assets with which it is associated.
Innovative companies today are using leveraged financing options that articulate the value of their intellectual property and technology readiness. To help generate capital, these often IP rich companies underwrite their IP portfolios to perform structured IP-backed non-dilutive debt financing transactions. Two type of industry partners play essential roles in IP-backed non-dilutive debt financing transactions:
Insurance Underwriting Partners: Select insurance companies specializing in the Insurance Linked Securities (ILS) asset class underwrite the valuation (in a fashion that translates the IP into a real capital asset) with an insurance policy, thereby producing a collateralized insurable financing vehicle.
Capital Market Partners: These insurance companies then work with select asset capital market partners to provide credit facility transactions using the insurance policy as an attractive securitization vehicle to hedge against potential losses.
HOW DO IP-BACKED LOANS WORK?
An insurance company will assess the quality, commercial viability, and potential risks associated with the intellectual property to determine if an insurance policy can be written to use the IP to underwrite the financial obligation of the borrower. The insurance company will use the IP as a collateralized insurable financing vehicle for lending purposes. Although the IP is the underlining asset, the insurance policy is in place to reduce financial uncertainty ("risk") and is basically serving as a financial obligation backstop or hedge for the Lending institution. Should things go side-ways (i.e. default), the lender can initiate a claim process with the aim of recouping most of the monies originally lent to borrower.
EMERGING ASSET CLASS
Intellectual capital has emerged as the leading asset class. According to a recent asset market valuation study, “intangible assets, which are assets that are not physical or financial, account for 90% of the S&P 500's total market value”, equally a value of over $19 trillion.
At Fallingst Technologies, we help our clients by partnering with select asset capital market partners to help facilitate the funding sources behind our IP-backed debt structured financing packages. In addition to our comprehensive IP valuation reports, we also provide advisory and facilitation services through the completion of the funding event. As part of the Program, we work closely with prominent insurance brokers and carriers. It is largely due to the pre-qualifying process and presenting the borrower’s due diligence & valuation profile package to our partners that increase the odds for successful funding events. We are kind of the gate keeper on behalf of the borrower for our insurance and capital markets / lending partners.
If you need working capital, but do not want to sacrifice more equity capital (funds paid into a business by investors in exchange for common or preferred stock), let’s explore our IP Valuation Non-dilutive Financing Program together.
Need Help Paying for Our Services
An important aspect of our Services are the Preferred Capital Markets Financing Partners who provide financing assistance for those clients who need help paying for the “fee for services” phases of our program(s).
For more information including FAQs and recent deal profiles, please contact us here.
IP Backed Non-dilutive Financing Program Partners
An essential component of the financing program includes our Insurance Underwriting Partners
who provide the necessary collateral protection insurance coverage used to “wrap” the IP assets for lending purposes. We help our clients (“borrowers”) by partnering with global asset Capital Market Partners to help facilitate the funding sources behind our IP-backed debt structured financing packages.
Learn more about our partners here.
IP Funding Programs
The following IP Funding Programs are provided by Fallingst Technologies LLC, a leading technology advisory, asset management and IP valuation services firm, and the management services provider of the IPRESTIGESM Fund.
Pursuit to The California Finance Lenders Law (Cal. Fin. Code §§ 22000–780) – Fallingst Technologies LLC serves as an independent third-party technology advisory, asset management and IP valuation services firm whereby said entity facilitates on behalf of its clients commercial lending programs and opportunities (i.e. ‘IP Valuation Non-dilutive Financing Program’ and ‘Smart Tech Lending Programs’). Fallingst Technologies LLC’s role and participation in such lending programs reside within the bounds of the statue’s “Exception for Finders and Middlemen” as referenced by Id. § 10131.