HCR is a leading royalty monetization firm that has been structuring and executing these transactions for more than a decade to help companies raise non-dilutive capital. Monetizing a royalty may be an attractive alternative or complement to raising equity capital, allowing a company to eliminate or delay dilution while enabling the company to fund additional projects. Royalty-based financing can also unlock shareholder value by eliminating financing overhang from a company’s share price.
What differentiates HCR from others in the industry is our team, our experience, our creativity and our flexibility. We seek to employ time tested principles and deep domain experience to tailor each transaction to the specific needs of our counterparty. We seek to not only provide capital but also to be a long-term partner with the companies in which we invest. There are a variety of alternatives available, including:
- Full royalty sale. Represents the sale of the entire economic rights to receive future royalties derived from an existing license agreement. Maximizes upfront proceeds.
- Partial royalty sale. Represents the sale of a portion of economic rights, allowing the seller to retain upside while raising considerable capital today.
- Royalty-backed notes. The company (or subsidiary) issues notes, which are repaid by future royalties. Allows for an agreed upon cost of capital upfront and allows seller to retain upside after the notes are fully repaid.
HCR has considerable experience working with universities, research institutions, and non-profit organizations to optimally monetize valuable intellectual property. We understand that it can take years to realize the full value of intellectual property developed at an institution.
Our platform is designed to help accelerate an institution’s cash flow, and in many cases, also preserve the upside potential associated with the royalty. Through a royalty monetization, an institution is able to sell part or all of the future cash flow payments of the royalty contract to HCR in exchange for a lump sum payment and/or milestone payments.
These transactions have enabled institutions to fund new research and development opportunities, capital/operating needs, endowments, innovation funds, and to unlock unrealized value in product royalties.
Benefits to Monetization:
- Convert long-term income into immediate cash;
- Investment/asset portfolio diversification;
- Risk management/risk sharing;
- Market recognition of academic research achievement; and
- Manage conflicts of interest.
HCR has been helping inventors monetize valuable intellectual property for over a decade. We understand that it can take years to realize the full value of an inventor’s discoveries.
HCR’s platform is designed to help inventors realize a portion of the value created today while also managing the risk associated with the future performance of the commercialized product. In most cases, the structure of a transaction will also allow an inventor to preserve the upside potential of discoveries. Through a royalty monetization, an inventor is able to sell part or all of the future cash flow payments of the royalty contract to HCR in exchange for a lump sum payment and/or milestone payments.
Benefits to Monetization:
- Risk management;
- Estate planning;
- Realization of immediate cash;
- Investment or financial diversification;
- Charitable giving; and
- Recognition for successful research.