Ravinia Capital Completes Competitive Auction Sale of LVX System’s 68-Patent LiFi Portfolio
The patent portfolio of defunct LiFi technology pioneer LVX System has been successfully acquired by Decentranet SPV 16, LLC. The sale marks the close of a highly competitive Chapter 7 bankruptcy auction managed by Ravinia Capital LLC.
Once a high-flying tech company with a valuation exceeding $100 million and a high-profile research partnership with NASA, Minnesota-based LVX System was founded in 2007 to revolutionise wireless communication. The company spent nearly two decades and over $20 million in investor capital developing LiFi systems, technology that transmits data through visible light rather than traditional radio frequencies.
Despite its early promise and heavy R&D investment, LVX struggled to commercialize its innovations. By 2024, the company’s annual revenue had plummeted to just $23,270. LVX entered Chapter 7 liquidation with merely $1,652 in the bank, $5.82 million in liabilities, and roughly 75 investors left with zero equity.
The company's sole remaining asset of value was a robust portfolio of 68 granted U.S. patents covering core innovations in LiFi and Visible Light Communication (VLC). Initially, the patents had a book value of $866,000 but lacked an established market or obvious buyer.
Tasked with monetising these assets, Chapter 7 Trustee Rick Stermer retained Ravinia Capital, who in turn partnered with leading intellectual property advisory firm Ocean Tomo to evaluate the technology. Through detailed claim charts, Ocean Tomo validated the portfolio’s technical strength and its commercial viability in today's evolving tech landscape.
"The LVX portfolio represents meaningful innovation in visible light communication," said David Fraser of Ocean Tomo. "Our analysis confirmed that these patents cover device- and system-level implementations relevant to the IEEE 802.11bb standard without being standard-essential, preserving maximum enforcement flexibility for the buyer."
Following a massive global outreach campaign contacting over 5,300 prospective buyers, including strategic acquirers and IP-focused investors, the live auction yielded competing over-bids, eventually going to Decentranet SPV 16, LLC.
Decentranet plans to deploy the newly acquired LiFi technology in specialised environments where optical data transmission is preferred over traditional Wi-Fi. The portfolio is particularly relevant for settings where radio frequency (RF) spectrum is constrained, highly regulated, or vulnerable to interference, such as in healthcare facilities, industrial automation, defense, and secure corporate communications.
"This transaction is exactly why we do this work," said Tom Goldblatt, Managing Partner at Ravinia Capital. "A company that spent years and millions of dollars developing real technology went under, and 75 investors were left holding nothing. Our job was to make sure that the innovation didn't die with the company. These patents represent genuine advances in how the world communicates wirelessly, and now they have an owner with the resources and vision to bring them to market."
The successful Section 363 auction not only recovered unexpected value for LVX’s estate and creditors but also ensures that foundational LiFi technology will continue to play a role in the wireless communication networks of the future. With the recent release of the IEEE 802.11bb standard, Decentranet’s acquisition positions the firm to be a key player as LiFi transitions from a niche concept to a mainstream commercial utility.
