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Top 5 Banks in 2024 for IP-Backed Financing

In 2020, Moderna leveraged its patent portfolio, which included patents related to the Covid-19 vaccine, to secure IP backed financing for research and development. This financing played a crucial role in the rapid development of its highly successful vaccine.

This is a prime example of how patents offer a valuable option for companies seeking additional capital without diluting their equity. They can be used as collateral for loans, making patent-based financing a viable and realistic path forward. 

This article highlights the top five banks in 2024 providing funding based on patent collateral. Additionally, we laid a specific focus on technological areas where they have recently funded patents. 

Top 5 Banks that have actively provided funding by holding patents as collateral [Feb-Apr, 2024]

S.No.BankLogoWebsite LinkTechnology Areas where patents were funded
1Royal Bank of Canadahttp://rbc.com/Cosmetics, Printing, Construction tools like Sawmill.
2JP Morgan Chase Bankhttps://www.chase.com/Medical Stents, Semiconductor, Cosmetics, Solar Power, Streaming and Broadcasting services.
3Bank of Americahttp://bankofamerica.com/Surveillance, WiFi, GPS, Artificial Turf, Water Pump, Climbing Tools 
4Wells Fargo Bank http://www.wellsfargo.com/Communication Software, Toys, Gaming Accessories, Valves, Housing Designs, Lighting Devices, Containers
5BMO Bankhttps://www.bmo.com/Networking, Medical (Dental Equipments), Crockery, Household Tools, 

Conclusion

IP-asset valuation rose significantly, from $61 trillion to $74 trillion between 2019 and 2021. Additionally, research by Ocean Tomo has revealed that intangible assets like patents now account for a staggering 90% of the value of S&P 500 companies. 

Despite this, many companies with huge patent portfolios, particularly startups and SMEs, still encounter hurdles in securing funding. 

A key reason is the challenge of appraising the value of IP assets compared to traditional tangible assets. The solution? A comprehensive IP valuation will help understand a patent portfolio’s true worth.

Fill out the form below to strengthen your negotiation position with potential lenders and confidently leverage your patents as collateral for loans.


Authored by: Piyush & Ayushi, Patent Monetization Team

Edited by: Annie Sharma

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