The top 20 Patent Loan companies — BoA, JPMorgan Chase & Silicone Area Lender Could be the Really Productive Dealmakers

The top 20 Patent Loan companies — BoA, JPMorgan Chase & Silicone Area Lender Could be the Really Productive Dealmakers

? six minute understand
  • Financial from The united states, JPMorgan Pursue, and you will Silicon Area Bank encountered the prominent amount of patent loan purchases for the past half dozen ages – accounting to own sixteen.0% of all the deals.
  • Investigation suggests that pledgees deal with a lot of tricky security – along with patents one turned dry prior to otherwise following the new transactions.
  • Certainly half dozen different kinds of financial institutions, capital and you may organizations has actually a dramatically higher express from deceased patents than the others.

Table out of contents

  • Addition
  • The top 20 Pledgees Regarding U.S. Immediately
  • The trouble With Inactive Patents due to the fact Security
  • Concluding Thoughts


Patent-founded investment has become more prevalent. Centered on a papers because of the X.T. Nguyen and you will E. Hille during the UCI Law Feedback, exactly how many patents and patent applications recorded as the guarantee ran of almost 67,100 from inside the 2007 in order to more than 178,100000 within the 2016 – an increase away from 167% along side a decade. But not, as more patents be a funding source for enterprises, significantly more latest standing are missing, and you may information stays not familiar.

Having fun with studies from the USPTO, we reviewed 489,732 patents bound between , and you may understood twenty-four,079 purchases. We ranked lenders by amount of transactions across the past half dozen yearspared to help you positions because of the patents, this method acceptance me to spot energetic pledgees – that would features otherwise become unnoticed.

A common issue regarding patent hope marketplace is one lenders might not have the information regarding pledgors’ patent portfolios, for instance the remaining life together with really worth on the patent sector. Yet not, on the method of getting large investigation and you will phony cleverness, these pieces of intelligence are readily available so you’re able to both pledgors and you can lenders.

In this post, i found that a significant amount of collateral patents is actually regarding absolutely nothing value with the pledgors in addition to patent market. Analyzing the newest courtroom status from patents bound over the past six ages shows that some types of lenders have in all probability a greater show out of inactive patents. These types of patents – if they turned deceased just before, during, otherwise after the conveyance preparations – try shorter valuable to borrowers and tend to be for this reason shorter best collaterals.

The big 20 Pledgees On the U.S. Without delay

Certainly all types of patent pledgees, Lender away from America, JPMorgan Chase, and Silicone polymer Valley Bank met with the largest number of income between . BoA grabbed the lead which have 1401 business – only somewhat more than new 1390 sales away from JPMorgan Chase. Silicone Valley Financial wound-up within the 3rd lay with 1057 sale – much fewer than the big a couple lenders.

The top about three companies account for sixteen% of one’s purchases along side half a dozen decades. Just the most readily useful around three pledgees enjoys a deal number greater than step one,one hundred thousand, as organizations between fifth and you can tenth place reduce than 600 revenue. The most significant 10 patent loan lenders made up 30.7% of all of the product sales, and the proportion on the most readily useful 20 loan providers is 42.8%. The results mean that the fresh patent loan market is extremely skewed.

Silicone polymer Area Lender have a much reduced quantity of patent-recognized financing than just BoA and you can JPMorgan Chase, therefore it is reduced well-known inside early in the day patent mortgage ranks. The latest California-created investment lender features VC and you can PE people and could end up being way more accessible to Internet protocol address-supported investment to possess startups, ultimately causing an excellent ount from transactions with couple patents. The kinds of people SVB deals with – plus life technology and effort – are both investment and technical-rigorous, and then make patent financing a great car to have funding.

The top around three are followed closely by Wells Fargo, Antares Financing, Wilmington Trust, and you can Borrowing Suisse. Western Fargo Financial is just one of the “huge five” major banking companies regarding U.S. – one other three becoming BoA, JPMorgan, and you may Citigroup. Credit Suisse is the merely non-American lender among the top lenders. Observe that Borrowing Suisse took 277,273 collateral patents for the past six age, just 2nd to BoA and you can JPMorgan Chase – which can be higher than Western Fargo Financial.