In the article, Graham warns that the Facebook disaster means extended waits for all companies thinking of going public until the market is attractive to IPOs again.
So what about the mezzanine-stage tech company with products, revenues, and a need for capital to grow? Consider the new concept developed by Carthage Intellectual Capital Management: a sale/license-back of its patent portfolio. Monetize your patents by selling them for needed capital and, in return for an annual fee, get a license back to use them just as before.
The concept is similar to a sale/leaseback of real estate, equipment, or software. The cost of capital is less than equity and the capital more available with less onerous terms than with a bank loan. There are tax advantages for the company–use the NOL that’s probably on your balance sheet and pay fully tax expensed license fees. And, should the company be willing, there is potential upside to company and investor through out-licensing in non-competitive fields of use of geographical area.