Collateralize your inventions? Is that even possible?
BlueIron is the only business that will use your inventions as collateral and finance patents based only on the strength of your inventions.
Even though your patents are being financed, you have full control of your patent assets. You – and only you – can assert the patents against competitors, enter into licensing arrangements, and use them to defend your business.
As part of every financing deal, BlueIron provides at least $500,000 in patent enforcement insurance. We want you to be building value in the patent assets, not spending money and time in court.
What is the best way to create value in a patent? Sell the patented product.
Value is created when you are selling product that uses the patented technology. Even more so, the patent needs to capture the reason why your customers are buying your product.
BlueIron makes investments in operating companies, not ideas. It is only when you are hearing the voice of the customer do you know if the idea has real value. This can only come from selling product in the marketplace.
IP as collateral.
Banks will sometimes use issued patents as security for loans, but only for issued patents that are infringed. Otherwise, the lender has no way to monetize the patents.
However, inventions that have not matured into patents can be the most valuable off-book assets that a company has. The value of these inventions is very difficult to quantify because there are enormous risks, such as that they may never issue as patents, that the marketplace may not adopt the technology, that the technology may never work, that the economic value of the inventions may not exist, and many other risks. These are not trivial risks.
BlueIron has technology for assessing those risks and investing in patent portfolios for small companies.
BlueIron creates a special purpose investment vehicle (SPV) to hold the patent assets, where the company has an exclusive license and full access to the assets. The structure is very similar to a typical commercial lease, but in this case the assets being “leased” begin as pending patent applications. As part of the SPV, the company has buy-back provisions that can be exercised at any time.
BlueIron is able to offer this vehicle because it has a unique vantage point to assess and mitigate the risks. BlueIron is making a large financial investment in your business, betting that your technology and your company will be valuable in the future.