Innovative companies today are using new and exciting leveraged financing options that articulate the value of their IP.
IP Valuation Financing Models
Intellectual Property (IP) + Technology Readiness (TR) = Measurable Economic Benefit ($$).
Our independent third-party IP valuation services help clients take advantage of non-dilutive lender and investor financing opportunities.
Liquidation Value: The company’s IP Assets serve as a collateral securing the loan; should the company default on its loan payments, the lean or debt holders (i.e. venture debt) can take over the assets and liquidate them.
Monetization Value: Whether a debt holder or corporate lender, interested parties want to know what is the “present value” of the IP Assets. IP owners need to know the ‘value’ to pursue monetization options (i.e. licensing). For debt lenders, monetization is important for securitization or even liquidation sales.
Growth (Pivot) Value: VC or other financial investors are more concerned with the IP Assets’ potential to serve as a platform for innovation and growth for future products and markets as well. How well can the company “pivot” or shift to other business models.
Synergistic Value: The equity investment value-add that a corporate investor brings, as opposed to a financial investor. The ‘money’ invested is the corporation itself (manufacturing, marketing, equipment, infrastructure).
IP Valuation Non-Dilutive Financing Program
Fallingst Technologies LLC is a boutique technology advisory, asset management and IP valuation services firm specializing in deep tech (advance encryption, AI, blockchain and digital identity verification) technologies. The firm also serves as the management service provider of The IPRESTIGESM Emerge Fund. Learn more here.
Our clients are interested in using intellectual property valuation and technology readiness to help underwrite their IP portfolio and effectively perform structured IP-backed non-dilutive debt financing transactions. Basically, insurance company partners underwrite the valuation with an insurance policy and then we work with select asset capital management partners for the funding.
To give you a sense of where non-dilutive funding using IP portfolios is headed as a corporate debt leveraging instrument, please refer to this recent press release: "AON Announces Launch of New Solution to Create Greater Access to Capital Based on the Value of an Organization's Intellectual Property Portfolio."
BlackRock, Microsoft (ODG acquisition), AON and others are demonstrating that non-dilutive corporate lending is viable for tech companies with healthy IP portfolios, particularly those companies that want to use risk transfer solutions for intangible assets such as intellectual property. In conjunction, we partner with select asset capital management partners to help facilitate the funding sources behind our IP-backed debt structured financing packages.
Innovative companies today are using exciting leveraged financing options that articulate the value of their IP. Positioning Intellectual Property (IP) + Technology Readiness (TR) in a fashion that translates into a real capital asset which allow companies to secure a significant amount of non-dilutive debt financing.
If you need working capital, but don’t 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.
For more information including FAQs and recent deal profiles, please contact us here.
IP Funding Programs
The following IP Funding Programs are provided by Fallingst Technologies LLC, a boutique Advisory and IP Valuation Services Firm, and the management services provider of the IPRESTIGESM Fund.