Entrepreneurs with inventions that they wish to promote often seek funding for the first stages to promote their business entrepreneurship, even though investments needed in the first stages of a product are relatively lower than later costs, i.e. marketing, advertising, production, and operation costs. However, the inventor often still needs startup capital to establish and promote his invention.
Many inventors invest their own money in the first stages, for concept planning or early patent application to “book” the priority date. Also, some add their own money to invest in the planning stages, and make an initial model or prepare an animated movie for visual illustration of the invention and the patent. However, many inventors search for additional funding for their enterprise, whether in the first stages or the later stages.
There are several standard solutions that can help fund some of the activities. One way is to search for investors is by approaching technology incubators. Technology incubators are bodies that invest money, usually made up partly of state funding and partly of private investors with venture capital funds. The entrepreneur, in compensation for financial investment, will usually offer a percentage share of the company holding the patent rights, and the technology incubator will invest funds for patent application and product development. Often, this can be a two-year project, and often the inventor will frequently work at the company, and be a company shareholder. Funding can also be raised by applying for a “tnufa” plan. “Tnufa” is a grant awarded to an inventor or entrepreneur, which leaves him as the holder of all rights into his enterprise. The tnufa will contribute towards the entrepreneur’s investment costs, equivalent to about 85% of his investment, and the entrepreneur returns the sum that he was awarded from his profits from the enterprise, assuming that there are such profits.
Our company helps inventors to combine the idea and the invention before and during the fundraising stage. Contact us and let us help you present your business enterprise, together with your idea or invention, and gather enough information to increase your chances of raising funds from these bodies and others. Our company incorporates professionals from many areas to promote your invention, patent, model and prototype building, business plan preparation and animated movie, and in later stages, we provide production help in Israel and overseas.