Institutions such as hospitals, universities, or research institutions pursue royalty financing to:
Diversify risk
Limits or removes risk associated with uncertainty around future revenue streams
Fund capital requirements
Allows for the opportunity to further invest in technology and resources, and maintain or expand the institution's operating budget
Fund other projects
Provides capital that may be allocated to projects outside the current scope of research, such as the institution’s infrastructure or new buildings
Fund earlier stage development efforts
Provides the opportunity to further invest in resources necessary to develop earlier stage technology
