Profit

Investors are interested in the reward attached to the venture capital they bring. Profits for venture capitalists are usually higher than for ordinary investments. Venture companies need to compensate for their risks. They also need to invest continuously to remain ahead of their competitors. Without intellectual property, time allowed to succeed is much too short.

Profit does not only pay risk; it retributes the creator’s genius. If the demand for intellectual property is satisfied, the amount of benefits for creation investments considerably grows. As mentioned above, creation’s investment provides very long ROI. Few other investments can offer such long return: life of the creator plus at least 50 years after death. As a result, private R&D investment will multiply according to needs and opportunities.

Demand for legal safety and authenticity also exists. A creation standard can provide highly labeled property titles (conformity, economic evaluation, originality validation), meaning higher legal safety for the investors.

Guarantee

Private investors want their debtors to be committed. Long-life duration plus highly labeled property title meets the investors’ demand for safety; because mortgage on the creation’s property can be obtained. In case of failure, the investors will become the owner of the original creation plus all the investments which have added value to it.

If the failure is due to mismanagement, the investors can sell the creation. He may also wait for better times and later start a new technical or marketing attempt.

These mortgages may also be used by public investors. Creation is often linked to a territory. Public administrations sometimes considerably support the birth and development of a creation. Mortgage’s contract may be concluded to link the development of creative activities to a certain region.