IP-Backed Lending
$2M–$50M in non-dilutive capital. Your patents are collateral.
Your patents are assets — like a building or a piece of equipment. A company with $5 million in annual revenue and a strong patent portfolio can qualify for a $20 million IP-backed loan.
Nobody’s ownership stake shrinks. The founders keep their equity. The cost of debt is always lower than the cost of equity for a company that believes in its own growth.
Never use equity to do a job that debt can do.
IP-Backed Lending vs. Venture Capital
| IP-Backed Loan | Venture Capital | |
|---|---|---|
| Ownership | You keep 100% | 20–40% dilution |
| Control | Fully retained | Board seats, veto rights |
| Timeline | 45–60 days | 6–12 months |
| Effective cost | 40–60% lower | Equity is the most expensive capital |
| Growth pressure | Sustainable | Forced growth, exit timeline |
| Complexity | Straightforward | Liquidation prefs, anti-dilution, drag-along |
How It Works
We evaluate your patent portfolio as collateral. Our valuation leverages partners with deep IP litigation and monetization experience — we assess patent value realistically based on the technology, the competitive landscape, litigation strength, and enforceability.
For every patent claim set, we analyze the targeted infringers or licensees, whether infringement can be detected, whether it can be proved, and whether the economic case justifies the investment. We prefer data-driven patents over lots of shiny plaques.
When the existing portfolio needs strengthening, we can supplement it through acquisition and development. We also provide patent insurance covering both enforcement and defense — so when you need to protect your revenue, the credibility is already in place.
Who Qualifies
| Revenue | Typically $5M+ annual |
| Location | US-based |
| Patents | Issued, infringeable patents |
| Funding | Bootstrap or venture-backed |
| Profitability | Clear path — not required today |
Enforcement Financing
If someone is infringing your patents, we finance the litigation from start to royalty payments. Big companies engage in “efficient infringement” — they use your technology and wait for you to sue, knowing you almost certainly cannot afford it. A patent lawsuit costs $2 to $5 million per side.
Enforcement insurance costs around $6,000 per year for $500,000 of coverage — less than a coworking desk. Without enforcement credibility, your patents are expensive wallpaper. With it, you have a seat at every negotiating table.
BlueIron has been financing and managing IP for over a decade — across medical devices, software, agtech, fintech, and industrial technology.
Common Questions
How is this different from a bank loan?
Banks do not lend against patents. They want real estate, equipment, or accounts receivable. We specialize in evaluating intellectual property as collateral — something conventional lenders are not equipped to do. That is our core competency.
What happens to my patents during the loan?
You continue to own and use them. The patents serve as collateral — the same way a building serves as collateral for a mortgage. You operate normally. If you need to enforce a patent during the loan term, we support that.
Why not just raise another round of VC?
Equity is the most expensive form of capital. A $10M raise at a $40M valuation gives away 25% of the company — permanently. The effective cost of that capital, measured against a successful exit, is dramatically higher than debt. Current investors love IP-backed lending because they get their slice of a bigger pie without giving up ownership.
How long does the process take?
Typically 45–60 days from initial conversation to funded loan. That compares to 6–12 months for a typical venture capital round — and without the roadshow, the term sheet negotiations, or the board seat provisions.
What if our patents need work?
We evaluate what you have and tell you honestly where it stands. When the existing portfolio needs strengthening, we can supplement it through acquisition and development — and our fractional CIPO services can build the strategic foundation to make your portfolio investment-grade over time.
