Invention finance is about financing the needs of a new, a physical or intellectual product created through innovation.
Between financing areas this contains
the highest uncertainty because both the development of an invention and its successful
realization carries uncertainty factors and also the profitability of the
invention and it being marketed too.
Depending on the sector it is possible to finance it through tenders according to the specific time period of the tender.
Due to the uncertainty of this area new alternative financing methods have arose for example crowd funding. In this system the investor can't loose big since their investment is not substantial either. It consists of massive amounts of small investments for which the investor receives the financed product or service, or share of the company in return. The expense per person is low and the return is usually low as well (not necessarily with companies achieving huge success) but it provides an alternative to finance inventions. Ideas that could not be financed conventionally because for a small number of large scale investors the risk is too high can be financed this way. It is essential for crowd funding to have a platform where the concept owners and the people who want to support can meet each other. Usually websites are used for this goal.
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