Investments in IP (patent assets) can offer a compelling alternative to other investment categories. As examples:
1. Patent investments can provide massive returns, sometimes several orders of magnitude beyond your initial investments. These potential returns can dwarf other investment classes such as stocks, real estate, and commodities.
2. You can realize returns typically within 1 to 5 years of the initial acquisition of the patent portfolio, which is a much shorter time period than other investment classes, some of which may take as long as 30 years to mature.
3. If your patent portfolio reads on dozens of potential licensees, it can bring you sustained, residual income over a several-year period.
4. And there are a number of ways to mitigate risk with patent investments. As an example, hiring attorneys on contingency fee can help contain your risk to your initial investment. As another example, early settlements can help you quickly recoup your initial investment costs and also finance the future licensing campaign.
Every investment into a patent portfolio offers a fluid game plan, because each portfolio will have a unique business model, varying with the magnitude of return, time of return, mitigation of risk, and other factors.
Capitalizing on this fluidity can enable your business to thrive, regardless of whether you are fully financed by investors or starting off on a meager budget.