When the line of traditional investment opportunities curtails, creative alternative investments must be found. I like to think that, currently, one of the most creative alternative investments that provides an option for great return (but with significant risk) can be found in commercial-stage intellectual property. Investing in inventors, universities, and start-ups involved in the innovation-to-commercialization process offer a unique but catchy investment opportunity, and Paul Capital has taken note.
The self-proclaimed “alternative investment firm” offers a branch that focuses on financing royalty products, whether under the university umbrella or with a company or individual inventor. Says their site:
Royalty interest financing is an avenue to obtain capital sooner by leveraging future product royalties to finance other investment opportunities and projects.
Paul Capital employs a similar business platform found at Altitude Capital and Royalty Pharma, investing in the innovation process at the commercialization stage (or late stage) to minimize the risk and allow some breathing room to complete the innovative process (and the product). This is a trend that will continue to grow.
Universities, research institutions, and inventors usually wait years to realize the financial benefit of the intellectual property they have invented or helped to develop. Royalty interest financing is an avenue to obtain capital sooner by leveraging future product royalties to finance other investment opportunities and projects.