home equity Loans (home equity lines of credit)
Home equity loans, or home equity lines of credit, are a form of debt financing, structured as line of credit, using your home as collateral. They generally carry high interest rates. It is not a traditional loan in the sense that you borrow a fixed amount up front that doesn't change until you repay it with interest. Rather it is a line of credit, meaning that it will provide you with flexibility to borrow up to a certain amount. You will pay ongoing interest on how much you have borrowed. You are free to pay down the line or draw against as much as you like.
Motivation and timing of investor
In this case the bank is looking to make money off of the interest you will pay them as you use your line of credit. Their primary motivation is to create a good return from their investment. Banks timing tends to be fairly short-term in the sense that they will expect monthly interest payments beginning immediately as you use the line of credit.
Typical Amount of Funding
The typical amount of the funding will depend on the total amount of equity you have in your home. Equity in this sense means the total value of your home less the total amount that you owe on the home.
Availability
Nearly all research universities have some kind of technology commercialization or transfer office. Contact your university or visit your university's website to find more information.
Interest and Principal Payments
These officees do not provide debt financing.
Equity
Some commercialization offices will take equity in your company in exchange for the services rendered. Also because university's will also claim some interest in the ideas developed using university time and resources, they will often negotiate for an equity stake based solely on these contributions. Some offices will request that the company that is formed pay the university a licensing fee for the technology or royalties on sales.
Control
Technology commercialization offices generally do not have significant control over the company beyond their equity stake and / or licensing agreement.
validation / Other
Technology commercialization offices provide some validation for your idea because they will probably not waste their time or scarce resources on bad concepts. However, most professional investors (like VCs) are still wary of many technology commercialization efforts because they often fall into the category of "technology looking for a market." This means that university's frequently develop amazing technology but it is not clear what applications the technology will have the real businesses and / or real customers are willing to pay for.
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