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Intellectual Property as a Superior Investment Model for Startups: A literature review

Year: 2025

Type: article

Abstract: Traditional startup investment models rely on capital-based equity financing, exposing investors to operational risks and market fluctuations. However, intellectual property (IP)-backed investment models offer an alternative approach by securing ownership in intangible assets rather than the business itself. This literature review examines the advantages of IP-based investment, comparing it to conventional equity financing. The study explores key themes, including valuation methodologies, revenue streams, risk mitigation strategies, and investor protection mechanisms. The findings suggest that IP-backed investments provide greater security, stability, and financial returns while offering a flexible exit strategy for investors.

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.14991631

Author: Albert van Niekerk

Language: English

Topic: Private Equity and Venture Capital

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W6949533963

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