51–60 of 109 posts
Just anecdotal but JP Morgan appear to be involved in quite a few shitty deals this cycle. I know they are going hard in syndicated loans, which is very hot right now, wonder what we will find out when the tide goes out.
The title and tone of this article make it sound unusual that the company used its IP as collateral. You can get better loan terms (such as the interest rate) if your loan is secured. If you are going to get a secured loan, the default is that it's secured by 'all assets', which includes IP. In order to perfect a security interest in IP, you need to make this type of filing -- and a lender will be especially sure to…
If I go to the park, pick up a rock, and then go to a bank and say there is diamonds inside worth $1m, and they lend against that then I have made $1m. If you lend against collateral, you are making a bet on the collateral being worth $X. JP Morgan have no idea what the IP is worth.
And btw, what is Magic Leap? They have got billions from investors with no product, they have now got billions from JPM with no product...either they have some of the most valuable patents known to man or this is an almighty scam (to be honest, I always hope it is the former because you have to be an abhorrent human being to pull off the latter...but that never is the case).
The title and tone of this article make it sound unusual that the company used its IP as collateral. You can get better loan terms (such as the interest rate) if your loan is secured. If you are going to get a secured loan, the default is that it's secured by 'all assets', which includes IP. In order to perfect a security interest in IP, you need to make this type of filing -- and a lender will be especially sure to…
The reason it makes headlines is because the value of IP is very volatile and bogus collateral is a very old scam (not only in banking btw, fake valuations are a feature of many scams). If I go to the park, pick up a rock, and then go to a bank and say there is diamonds inside worth $1m, and they lend against that then I have made $1m. If you lend against collateral, you are making a bet on the collateral being worth…
The title and tone of this article make it sound unusual that the company used its IP as collateral. You can get better loan terms (such as the interest rate) if your loan is secured. If you are going to get a secured loan, the default is that it's secured by 'all assets', which includes IP. In order to perfect a security interest in IP, you need to make this type of filing -- and a lender will be especially sure to…
Using patents to secure loans is not new. Most Famously Tesla did it. What makes it "news" is that Magic Leap was able to raise $2.6 Billion without having to resort to using the I.P. as collateral. It usually does not make the previous investors happy and you usually resort to this when you can't raise money any other way. It is also a one-trick-pony in that you can't do it again and future potential investors know…
You as founder are most likely going to be the one trying to sell your IP if your startup fails and your debt guys will essentially give you a commission to do so.
Earlier quoted context omitted.
A company I used to work for was recently acquired because they were supposedly working on some kind of block chain technology. After the acquisition, all ‘work’ on the block chain was stopped and everyone reassigned to other, more mundane projects. Word is, the ex-CEO somehow sweet talked the acquirers with some fancy PowerPoint slides. He spends most of his time coming up with these proposals and shops them around…
Did this individual used to work in the identity space? Canadian?
The title and tone of this article make it sound unusual that the company used its IP as collateral. You can get better loan terms (such as the interest rate) if your loan is secured. If you are going to get a secured loan, the default is that it's secured by 'all assets', which includes IP. In order to perfect a security interest in IP, you need to make this type of filing -- and a lender will be especially sure to…
This is just an anecdote, but everyone and everything about Magic Leap has always struck me as pretentious, elitist, and ego-driven. I walked by their booth at GDC a couple years ago, and tried to struck up a conversation with the representatives. I was essentially shooed away and given a sticker. Later on that night, an invite to their Magic Leap party was sent to a telegram channel with an open invitation to 'come…
if they sent an invite 10 minutes before it was wrapping up it's because nobody showed up lol
I'm amused that anyone ever took Magic Leap seriously. It's basically Apple's Newton; a good idea without the tech, without the infrastructure, without the content to sustain it and make it useful. Check back in after 10 years.
It certainly wasn't a toy with a couple half-baked demos and no actual apps. There was a healthy third party hardware and software developer ecosystem. A lot of people (including me!) wanted to see it work, and it was frustrating to have Jobs kill it right when it was getting traction.
> Magic Leap is estimated to have over 1,800 employees and 19 office sites. For a company that has no consumer product and has no revenue, to have this many employees is quite shocking to me.