How Can I Leverage My Patent to Attract Investors or Secure Funding?

If you’re an inventor or a startup with a patent or a pending patent application, you may be wondering how you can use your intellectual property (IP) rights to finance your innovation and grow your business. Patents are not only valuable for protecting your invention from being copied by competitors, but also for attracting investors or securing funding from various sources. Please continue reading to learn more about leveraging your patent to attract investors and how a New Orleans, Louisiana intellectual property lawyer can help protect your interests.

Leveraging Your Patent to Secure Funding/Attract Investors

Just some of the ways you can leverage your patent to achieve your financial goals are as follows:

Use your patent as a marketing tool:

One of the benefits of having a patent is that it signals to potential investors that your invention is original, useful, and has passed the scrutiny of the United State Patent and Trademark Office (USPTO). This can boost your credibility and reputation, helping your patent stand out from the crowd. You can also use your patent as a marketing tool by displaying patent marking, which means that the “patent pending”, “patented”, or “Patent/Pat. [Number]” status is printed or displayed on your product, website, or pitch deck.

Explore licensing opportunities:

Another way to leverage your patent is to explore licensing opportunities with other companies that may be interested in using your invention. In a licensing agreement, the patent holder grants another party the right to use their patent in exchange for a royalty fee or a lump sum payment. Licensing a patent is a fantastic way to generate a steady stream of income without having to invest in production, distribution, or marketing.

Use your patent as collateral:

If you need a loan or a line of credit to fund your business operations or expansion, you may be able to use your patent as collateral. Collateral is an asset that you pledge to a lender as a guarantee that you will repay the loan. That said, it’s important to know that if you default on the loan, the lender can seize the collateral and sell it to recover their money.

Utilize your patent during M&A or joint venture negotiations:

If you are looking for a strategic partner or an exit strategy for your business, you may be able to utilize your patent during mergers and acquisitions (M&A) or joint venture negotiations. Patents and other forms of intellectual property can increase the value of your business and make it more attractive to potential buyers or partners. They can also give you an edge in negotiating the terms and conditions of the deal, such as the price, royalty rate, exclusivity, or scope of the agreement.

As you can see, patents are not only useful for protecting your invention, but also for leveraging it to attract investors or secure funding. However, they aren’t always easy to obtain and enforce, which is why you need to have a strong patent strategy and work with an experienced IP lawyer who can help you navigate the dynamic IP landscape. If you are looking for a New Orleans intellectual property lawyer who can help you leverage your patent, contact Lemler IP today for an initial consultation.