ABSTRACT
This chapter presents the difficulties faced by innovating small to medium size enterprises (SME) in accessing debt finance as an example to illustrate the corporate Intellectual Property (IP) asset transparency problem. It focuses on the classic business life cycle, between the initial start-up and the critical early growth stages of the innovating SME. The chapter aims to bridge the gap between corporate finance and corporate governance by introducing the modern corporate IP asset dimension. It explains the power of debt finance to generate returns and analyses the stakeholders involved in the development of IP-backed lending and the innovation business life cycle. The chapter discusses the funding landscape as well as newer funding options. It examines the lenders' triad of concerns, and introduces the issue of legal risk, uncertainty in patent valuation and the process for registering security interests in patents.
