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Economy

Venture debt lets startups borrow money against their patents

HERE’S THE INTERESTING PART

Because when you are bleeding cash, you might as well pawn your intellectual ideas. Instead of giving up more equity, highly risky startups take on venture debt, using their software patents and proprietary algorithms as sheer collateral. If the startup implodes, the lenders simply seize the intellectual property and sell it off for parts to competitors.

Venture debt lets startups borrow money against their patents
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