How are IP-backed loans cheaper than VC money?

Venture capital is priced to cover the fact that most of their investments fail — so they need outsized returns from the 1 out of 10 that succeed.

That means selling equity at a very high effective cost of capital (which typically averages 50% IRR).

With IP-backed lending, we’re underwriting against the strength of your patents and revenue.

Because we understand the assets and our downside risk is lower, we don’t need “moonshot” returns — making our capital half the cost of VC equity.