Funding Innovation and Commercialisation

Commercialisation of Intellectual Property, 2017, ISBN: 9780409340648

Monash University Faculty of Law Legal Studies Research Paper No. 3000696

27 Pages Posted: 18 Jul 2017

See all articles by Ann Monotti

Ann Monotti

Monash University - Faculty of Law

Date Written: March 11, 2017

Abstract

This is a draft chapter for a forthcoming book. A business that cannot fund its innovative and commercialization activities internally has a number of options for seeking external sources of funding. These vary according to the nature of the business, the technologies it is developing, the purposes for which funds are sought, its growth potential, size and the stage of its development.

For new innovative businesses, the entrepreneur is generally the initial source of funding – ‘bootstrapping’ or ‘private capital’ – relying upon savings, personal loans, overdraft facilities, credit cards and mortgages over other assets such as a family home or other real estate. These funds are commonly supplemented with debt or equity finance from family and friends. Other funding sources used in the early stages by new businesses include government grants and rewards based crowd-sourced funding. There might be opportunities as the enterprise develops for negotiating advance payments from customers and delayed payment terms from suppliers as well as obtaining debt finance from bank or finance company loans.

This paper considers the concepts of innovation and commercialisation, and the various sources of funding, including public sector grants and co-investment programs, debt finance, equity finance, formal venture capital, business angels, and corporate venture capital, business accelerators, crowd sourced equity funding, initial public offerings (IPOs), joint ventures and partnerships and employee share schemes.

Keywords: funding of innovation, funding commercialisation, venture capital, finance, business angels, employee share schemes, business accelerators, crowd sourced equity funding

Suggested Citation

Monotti, Ann L., Funding Innovation and Commercialisation (March 11, 2017). Commercialisation of Intellectual Property, 2017, ISBN: 9780409340648; Monash University Faculty of Law Legal Studies Research Paper No. 3000696. Available at SSRN: https://ssrn.com/abstract=3000696

Ann L. Monotti (Contact Author)

Monash University - Faculty of Law ( email )

Wellington Road
Clayton, Victoria 3800
Australia
+61 3 9905 3377 (Phone)

HOME PAGE: http://www.law.monash.edu.au/staff/amonotti.html

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