Recent studies show that high growth, IP-rich businesses are more resilient and perform better in today’s economy.
The importance of IP to business funding is supported by a recent white paper from the World Intellectual Property Organization (“WIPO”). Its findings concluded that IP is now an essential element in obtaining venture funding.
Mainstream funding sources are also recognizing the value of intangible assets – specifically intellectual property. This recognition of IP as a “bankable” asset is the driving force behind new financing opportunities for IP rich business around the world.
- Malaysia and Singapore are introducing guarantees to facilitate IP-backed lending;
- Denmark and India are supporting the development of IP marketplaces;
- Germany has sought to articulate the ‘Wissensbilanz’ to assist financial analysis of individual firms;
- Brazilian banks are experimenting with IP audits prior to lending.
- China has publicly set out its policies to make the country a world leader in IP by 2050,
- Hong Kong set up a $5bn Innovation and Technology Fund targeting IP-rich businesses.
Global licensing generates billions of dollars and leaves no doubt that IP is an immensely valuable, highly trade-able and very portable asset class. Financial markets now recognize the importance of IP assets to a business. Intellectual property and, more broadly, intangible assets now account for the majority of business values. Businesses are investing more in new, intangible assets—databases, brands, processes, technologies, know-how and trade secrets — than new physical assets. Companies today are earning more from their IP assets than from tangible plants and equipment
Your business IP gains value the more widely it’s used and the more visible it becomes in commercial markets. The strategic use of your IP can open doors to new funding opportunities. It can be used as collateral for loans, equity financing, and even funding pension funds. It makes your company more attractive to investors and can set the stage for an exit strategy.
Free e-course: 7 Ways to Grow Your Business with Licensing
Your business IP is a revenue generating asset. Yet it’s an asset you may not be using to its full revenue potential. During this e-course, you’ll learn about 7 ways you can use licensing to get the most out of your business IP. You learn how to use it to launch new products, create revenues, get financing, start a new business, stand out from the competition and much more.
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Rand Brenner is an IP professional whose passion is helping inventors, startups, and businesses of all sizes use licensing to turn their IP into income-producing products, services, and technologies. His decades of experience run the gamut from medical devices to food technology to consumer products. He’s licensed some of the biggest Hollywood entertainment blockbusters including the Batman Movies (1 and 2), and the number one kid’s action TV show, the Mighty Morphin Power Rangers. Rand speaks about licensing and is a featured speaker at investment conferences, trade shows, colleges and startup events. He’s a published writer with articles appearing in several prestigious trade magazine including The Licensing Journal, Intellectual Property Magazine, and License India. Rand also mentors at the Cal State Fullerton School of Business and Economics and is a judge for their startup business plan competitions.