There are hosts of options for Patent funding, however when seeking funding there are a couple things that should be considered;
- You must have contingencies; nothing will make a venture more difficult than not planning for issues to arise.
- Never undertake a venture underfunded, if you are barely able to afford the startup you will struggle when unexpected issues arise.
- Individual Funding: Where one person provides funding/capital for a startup, rather than simply giving the capital for no return there will usually be an exchange through interest or equity.
- Crowdfunding: Modern practice brought through mainly digital forms. Individuals will ‘pledge’ or ‘fund’ a project. These individuals will have a stake either through shares or some form of ‘reward’, including the item being funded. In Australia there is a new program introduced for Australian public companies with a turnover /gross of assets under Two Million AUD.
- Government Grants/Funding:‘The Entrepreneurs’’ Programme: Generally used for small or medium sized ventures, they provide avenues to capital and knowledge. This program offers three elements to support businesses.
- Accelerating Commercialization: Program helps startups address challenges in pathways of bringing new products, processes or service. This program will match a company’s investment and provide advisors with a focus on commercialization to help guide within the process of commercializing a start-up.
- Business Management: provides services to assist in improving business capabilities and networks.
- Innovation Connections: assists in small/medium businesses to access information, research and innovate.
- Research and Development (R&D) Tax Incentive: Another Australian Government principal/initiative aimed at encouraging industry investment for research and development. Program is aimed to improve market and industry productivity, as well as company competitiveness.
- Export Market Grant: Australian Government financial assistance scheme available for Australian exporters. These grants are available to multiple types of businesses that qualify with a turnover of up to Fifty Million AUD. This Scheme is administered by Austrade and offers reimbursements of up to 50% of expenditure incurred in export marketing activities. To qualify, activities must have resulted in at least $10,000 spent over two years on eligible exporting
- Private Venture Capital Companies: These are companies specialized in investing in start-up companies, these companies will generally target high risk/return investment opportunities. Besides capital/funding, this companies will also offer managerial skills. It should be noted that these companies will generally request significant equity and control for this funding.
- Initial Public Offerings: Where a venture, structured in the form of a public company, raises capital through offering first timeshares to the public. Generally used by larger companies.