Welcome to Licent Capital, a specialty finance company that provides non-recourse debt financing for licensors of intellectual property.

Our financing includes transactions of all sizes, offered through either direct lending by Licent Capital or placement of debt with institutional investors.

Licent Capital specializes in providing debt financing for licensors of:

• Patents
• Copyrights
• Trademarks

Financing from Licent Capital delivers upfront cash proceeds based upon a multiple of annual licensing royalty revenues. We consider all forms of licensed intellectual property - patents, copyrights, and trademarks. Our clients include businesses, universities, and individuals across a broad range of industries.

Unlike equity financing, IP Royalty Financing does not dilute ownership of the intellectual property, enabling the owner to retain all the upside value of the asset.

At Licent Capital, intellectual property finance is our only business. We welcome the opportunity to learn about your business, to ascertain your needs, and to provide the debt financing that best meets your objectives.

Licent Capital provides IP royalty financing for a wide variety of clients, including:

• Corporations in the U.S. and abroad
• Universities
• Independent inventors
• Venture capital investors
• IP management corporations

Because our sole focus is intellectual property, we clearly understand its value. We are experts in royalty debt financing for a broad range of industries that license patents, copyrights, and trademarks.

Licent Capital can finance all forms of licensed intellectual property, including patents, copyrights and trademarks. Representative transactions for Licent Capital include the following forms of intellectual property:

• Patented Technologies (pharmaceuticals, electronics, chemicals, mechanical devices, etc.)
• Copyrights (movies, music, literature and computer software)
• Trademarks (entertainment, fashion, sports and corporate and collegiate merchandising)

Revenue producing assets suitable for financings should be identifiable, stable (or growing), relatively homogeneous and capable of being assigned. In principle, most types of intellectual property licensing, including patents, copyrights, and trademarks produce cash flows that can satisfy this criteria if they are licensed to third parties. The licensing arrangement may be exclusive with one licensee or non-exclusive with multiple licensees. In order to qualify for financings from Licent Capital your patent license royalty stream must, however, meet the following minimum criteria:

• licensed for at least two years
• robust annual cash flows of at least $1 million
• relatively predictable stable (or growing) cash flow

Non-recourse debt financing, collateralized by intellectual property, offers many benefits, especially when compared with traditional equity or debt financing. These benefits include:

• Low-Cost Funding
• Long-Term, Fixed-Rate Financing
• Non-Dilutive Capital, enabling clients to retain the upside value of their IP asset
• Non-Recourse Financing, wherein debt is secured by the firm's royalty cash flows and intellectual property
• Unrestricted Use of Proceeds, including:

• Distribution to partners, stockholders, and/or lenders
• Reinvestment in R&D and patent procurement
• Estate planning

• Freedom from Restrictive Covenants, requiring no company-specific covenants or events of default
• A Lending Decision Based Upon Royalty Revenue Streams, moving beyond the traditional institutional focus on net income or net cash flow
• Perfectly Matched Funding,  so that revenue streams from IP assets pay down the debt
• Tax Advantages, because interest on this type of debt is fully tax deductible
• Dedicated Funding for the IP Management Company, independent from its parent company's funding sources
• Independent IP Valuation, enhancing the overall company valuation and supporting transfer pricing

Any number of these motivations may be most applicable to your situation. Accordingly, we welcome the opportunity to better ascertain your needs, answer your questions, and explore the suitability of this financing method for meeting your various corporate objectives.

The process of lending against intellectual property begins with identifying assets that are producing robust revenue streams, where the associated cash flows are stable (or growing) and relatively predictable. These revenue streams stem from contractual obligations in the form of IP license agreements. In most cases, future cash flow is based on market demand for those IP assets with all the volatility that this implies. As a result, this type of financing transaction is highly dependent on an analysis of the future demand for the IP asset including such factors as public tastes and preferences, technological change and risk of obsolescence.

Licent Capital's due diligence involves checking the underlying IP licenses, and using independent experts to review the technology and market risks specific to your forms of IP. The results of these analyses are then used by Licent Capital to value the IP assets and structure a financing proposal. We expect this entire process to take approximately three months, from the execution of a client engagement letter to the issuance of a commitment letter by Licent Capital.

Closing will follow shortly after the completion of the due diligence process subject to the completion of financing documents, and a royalty audit to verify the royalty stream.