Brooklyn Law Review


This article is about innovations. Startups and their founders in the innovation intensive sectors cannot reach their dreams without financing. They cannot turn to banks for loans. Banks, from community to commercial banks, shun startups due to antiquated banking law, business model and high risks associated with tech lending. But there are outlier banks who disrupt the banking business model with lending innovation, fueling startups with loans that allow tech innovations to occur from Silicon Valley to Route 128 of the northeast corridor, and from Shanghai, China to Herzliya, Israel. With qualitative and quantitative patent data, this article demonstrates how the outlier banks are facilitating innovations beyond the entrepreneur’s dream stage. This article is the first to identify the disruption in tech lending by outlier banks and theorizes how IP Venture Banking is powering innovation and economic growth. The disruptive model is a new beginning for both banks and startups on the path of borrowing and lending for innovations.