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Is it better to own my patents rather than lease them?

Financially, a startup’s cost of capital is extremely high – especially at the beginning – so every dollar needs to be spent wisely.  Leasing or renting assets is much more capital efficient.

Most startup companies lease office space and even lease furniture through a coworking space.  They lease computer services through Amazon Web Services and Microsoft Azure.  Virtually all of the tools they use are SaaS or other “leasing” type models.

The reason why leasing or renting is attractive is two fold:

  • Leasing an asset means you do not have to pay for it up front.
  • Leasing an asset means someone else takes care of building and maintaining the asset.

When you consider a startup company’s cost of capital, BlueIron’s financing is actually cheaper on a Net Present Value of money basis.

The big benefit of “leasing your patents” is that BlueIron is perfectly aligned with your business.  We need to create good, solid assets and will only do so when there is a business reason.  You will never get the feeling that you are asking the barber if you need a haircut.