From: doug.bailey@ey.com
Date: Tue Oct 07 2003 - 19:23:07 MDT
> In order to borrow, we need to guarantee that substantial
> amounts of future revenue can be collected. Therefore we
> need to create a centralized organization (eg a research consortium)
> for interested parties in uploading technologies. This
> organization will gradually accumulate intellectual property,
> industrial know-how, and competitive advantage and thus create
> barriers to entry.
First, pulling alot of intellectual property under one umbrella
would be an legal and valuation nightmare. Second, if the intellectual
property is compelling there are already methods to raise capital
by securitizing future income streams (e.g., David Bowie's "Bowie
Bonds".) Unfortunately, I believe that it would be extremely
difficult to raise financing in this manner for "uploading" IP since
I suspect it would be very difficult for rating agencies to get
comfortable that the investment grade would be anything higher than
junk status.
The best bet for financing is to identify a current, real world
application (or better yet, a military application) for your
technology (e.g., the use of synthetic diamonds to overthrow the
DeBeers monopoly and raise capital to fund diamond-based
computer chip technology). Raise capital through exploitation
of this niche and then use that capital to fund the real stuff
you are after.
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