In July 2022, Ashley Sudjianto, a partner at Adelaida Technology Capital (ATC), had to make a recommendation to ATC's investment committee on how much money ATC should lend to CarboCaptor Inc., an emerging chemical-manufacturing start-up that had a patented, cost-effective solvent that captured carbon dioxide (CO2) from the air. In late 2021, CarboCaptor had been well on the way to launching a new vertical: chemical compounds to aid CO2 storage in concrete. Now, CarboCaptor’s CEO had reached out to ATC for $6.5 million in debt financing, $2.3 million of which was to fund equipment purchases, and $4.2 million of which was to finance CarboCaptor’s growth strategy and working capital needs. ATC was a perfect partner to reach out to. An East Coast venture leasing investor, the fund specialized in small-scale biotech and manufacturing equipment financing. It typically acquired these tangible assets and leased them to companies, receiving in return a promise of scheduled payments as well as warrants to purchase start-up stocks. CarboCaptor's equipment needs were exactly what ATC aimed to finance. There was just one catch: CarboCaptor's board of directors had decided to offer ATC its two core patents as collateral for the financing. The patents had 13 years of useful life remaining and were crucial for CarboCaptor's ability to produce its most popular product, CO2 solvent. But ATC had never used patents as collateral for a venture leasing transaction before. On all accounts, CarboCaptor’s two core patents were valuable. Could Sudjianto convince her partners to use patents as collateral in exchange for funding the full $6.5 million CarboCaptor had requested? And if she could, what terms and deal structure would be the best to account for the riskiness of the venture?