Keep 100% Ownership. Access $2-50M in Growth Capital at Half the Cost of VC.
Non‑dilutive. Fast. Built on the strength of your issued patents.
- Typical savings vs. VC: 40–60% lower cost of capital
- You retain full control — no new board seats
- 30–45 day closing process (not 6–12 months)
- Straightforward terms; debt, not equity
- If your patents are infringed, we can finance the enforcement/recovery
Is This a Fit?
We’re a good fit if you:
- Generate $5-10M+ in annual revenue
- Own quality issued US patents aligned with your products (or infringed by others)
- Want non-dilutive capital to scale without giving up control
- Prefer sustainable growth over forced “hockey-stick” targets
Why CEOs Choose IP-Backed Financing over VC:
The Core Motivations
- Strategic optionality: Avoid restrictive VC terms and liquidation stacks
- Capital efficiency: 40–60% cheaper than venture equity
- Control preservation: Keep 100% ownership and all board seats
- Growth flexibility: Scale at the pace your operations can support
VC vs. IP‑Backed Financing (At a Glance)
| Venture Capital | BlueIron IP‑Backed Financing | |
|---|---|---|
| Ownership | Give up 20–40% | Keep 100% |
| Control | New board seats, terms, oversight | You retain full control |
| Timeline | 6–12 months to raise | 45-60 days to close |
| Cost of Capital | Priced for 10x fund returns | 40–60% lower effective cost |
| Growth Pressure | Forced “hockey‑stick” | Sustainable, management‑led |
| Complexity | Liquidation preferences, ratchets, provisions | Straightforward loan terms |
How It Works
- Confidential Assessment (No Pitch)
Share basic revenue, patent holdings, and capital needs. We’ll compare VC vs. IP‑backed financing for your situation. - Patent Collateral Evaluation
We assess the strength, relevance, and monetization leverage of your issued patents—either supporting your current product line or indicating credible infringement by others. - Indicative Terms
If it’s a fit, we present non‑binding terms with estimated facility size, pricing, and covenants. - Diligence
Focused review of patents, encumbrances, revenue quality, and enforcement posture. Efficient, time‑boxed. - Funding
Close in 30–45 days. Capital deploys to growth, working capital, acquisitions, or enforcement.
Example Results
- Consumer-focused SaaS Company at $5M ARR financed $20M for a combination of growth and patent enforcement litigation; bootstrapped, family-owned business kept 100% ownership.
What We Look For
- Issued U.S. utility patents (not just provisionals or pending applications)
- Clear link between your IP and current revenue or credible third‑party infringement
- Solid unit economics and use of proceeds tied to growth
- Clean IP chain of title; minimal encumbrances
FAQs
Is this venture debt?
It’s asset‑backed lending secured by your patents. We give you credit for the IP which banks (and venture capital) cannot do.
How is it 40–60% cheaper than VC?
Venture capital is priced to cover the fact that most of their investments fail — so they need outsized returns from the few that succeed. That means selling equity at a very high effective cost of capital. With IP-backed lending, we’re underwriting against the strength of your patents and revenue. Because we understand the assets and the downside risk is lower, we don’t need “moonshot” returns — making our capital 40–60% less expensive than VC.
Will you take a board seat?
No. You keep your board and decision rights.
What if my patents are being infringed?
We can structure capital for enforcement, including pre‑litigation strategy and litigation finance, where appropriate. When appropriate, we can structure a loan that gets paid off by proceeds from the litigation.
How fast can we close?
Typical close is 45–60 days, subject to diligence.
What if we’re pre‑revenue?
We generally require $5M+ annual revenue or a strong enforcement case. If you are getting close to that number, let’s have a discussion. If you are pre-revenue, let’s wait until you have your first few customers.
Ready to Compare Your Options?
Free assessment — no pitch, no pressure, just an objective comparison of VC vs. IP‑backed financing for your specific situation.
Note: We evaluate 2–3 new transactions per quarter to maintain quality and speed.