Financing Intellectual Property
The Business Development Bank of Canada (BDC) has announced its commitment to investing $160 million into helping commercialize intellectual property by funding young Canadian companies trying to capitalize ideas. The Liberal government has made it a priority to invest in intellectual property initiatives after former BlackBerry Ltd. CEO Jim Balsillie, pushed the government to act on this matter. Thank you, Jim! BDC Capital has recognized that this type of funding is crucial while the banks get familiar with dealing with companies and their intellectual property growth potential, while continuously supporting startup businesses and entrepreneurs.
On average, approximately 70% of valuable assets of Canadian public companies are intangible. If you’re running a heavily branded, consumer facing company (regardless of whether you’re providing a service or product), the company’s brand is an invaluable corporate asset. Read our previous article on Trademarks: An Invaluable Asset for any Consumer Facing Company for more information on why these intangible assets are crucial to any business.
How will it work?
The BDC fund will mainly target globally minded companies that generate at least $1-million of annual revenue by selling intellectual property based goods and products. This includes companies in a range of fields, from law firms to tech companies. Specifically, they will target companies that have had difficulty securing backing from traditional IP funders. Additionally, its funds will go towards working capital that does not necessarily tie into intellectual property performance.
Froese Law is your ally for success. We can assist with formalizing IP protection and sourcing government funding.