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. | Bank | Logo | Website Link | Technology Areas where patents were funded |
| 1 | Royal Bank of Canada |  | http://rbc.com/ | Cosmetics, Printing, Construction tools like Sawmill. |
| 2 | JP Morgan Chase Bank |  | https://www.chase.com/ | Medical Stents, Semiconductor, Cosmetics, Solar Power, Streaming and Broadcasting services. |
| 3 | Bank of America |  | http://bankofamerica.com/ | Surveillance, WiFi, GPS, Artificial Turf, Water Pump, Climbing Tools |
| 4 | Wells Fargo Bank |  | http://www.wellsfargo.com/ | Communication Software, Toys, Gaming Accessories, Valves, Housing Designs, Lighting Devices, Containers |
| 5 | BMO Bank |  | https://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
