Intellectual Property Value In Startup Investments: A View From Silicon Valley, Intellectual Property Expert Group - Task debt is extra tough to obtain, as simplest a handful of banks or budget provide this kind of investment to startups which are looking to use ip assets as a collateral.? a number of the economic establishments that provide undertaking debt lending encompass silicon valley bank and fortress investment organization.? venture debt is a senior secured mortgage that has liquidity choice mainly other debt or equity holders.? the word will most in all likelihood be secured through one hundred of the assets of the business, and the lender will generally lend 25-75 of the truthful marketplace price of assets.? lenders (debt holders) are generally concerned with operating coins flows, and the capacity of the business enterprise to pay again the loan and amassed interest.? the enterprise’s ip assets serve as a collateral securing the mortgage; should the organization default on its mortgage bills, the debt holders can take over the assets and liquidate them.? in our startup ip valuation model, that is known as the liquidation price.? debt holders don’t participate within the boom of the employer’s property, as their return is constant in nature (pre-determined interest rate).? now not all ip assets have a robust liquidation cost; within the case of cooldata, it turned into surely their software property that carried more liquidation value than the patent assets.? the patents had been forward looking, not masking era this is broadly deployed in the marketplace but, a factor that determines plenty of the cutting-edge marketplace cost of patents.? the software program, on the other hand, has already been used and could have been without difficulty licensed to additional data centers, and therefore a whole lot of the liquidation fee in that unique case got here from the software. Intellectual property assets (ip property), in general patents and software, have been the riding pressure at the back of high tech companies, but frequently instances investors fail to understand their particular price as strategic commercial enterprise assets.? traders tend to attention at the defensive fee of ip belongings, because it pertains to shielding the organization’s own products, but that may be a very slender point of view that totally misses the whole price of those property for investors.? this problem receives exacerbated as increasingly more startups turn to leverage their ip assets for investment, as we're frequently seeing in our silicon-valley based totally ip valuation exercise.