We are happy to introduce you to IPwe Capital Partners.
We have the sourcing, real world valuation expertise, track record and execution capabilities to handle all aspect of a new category of lending for SMEs.
Focusing on the multibillion-dollar patent finance market opportunity that exists between the “loan to own” and traditional ABL, we have under term sheet $100+ million of patent financings with transactions sizes ranging from $10 to $50 million. Our current focus is on the US and EU and largely SMEs, although we expect over time to see this move up market to larger enterprises and to expand globally.
These facilities are typically structured with an SPV holding the patents as collateral, with two to three-year terms, 11 – 15%+ interest rates, and credit enhancements that can include quarterly revenue shares, warrants, parent guarantees and residual value insurance. The closest facility type analysis indicates a 4% historical default rate. These are not royalty financing transactions, but are based on the sale and licensing value of the underlying patents with coverage ratios based on IPwe’s analysis and third-party valuations that exceed 2.5x LTV.
Erich Spangenberg leads this effort for IPwe and he is extremely well known in the patent space and has been involved as a principal in over $300MM of patent licensing transactions and over $2B of patent financing and fund related transactions.
Our IPwe Capital Partners finance team is based in New York and Paris.
We have 15+ years of experience and $25 MM investment in exponential technologies.
Learn more about IPwe’s Qualifications