Improved IP valuations

First introduced in December 2009, Sollomon provides organisations with a unique online valuation methodology to determine what their IP and other intangibles may be worth. Developed by Inngot with specialist input from Grant Thornton UK LLP, it provides a value indication using the “relief from royalty” method of calculation favoured by many specialists: this has the additional benefit of providing users with an indication of the royalty rate range their innovation is likely to command in the marketplace, helpful when seeking to negotiate licensing agreements.

Over the course of 2011, the Sollomon tool has demonstrated its suitability for a wide variety of applications. These uses range from portfolio company evaluation by venture capital funds and angel investment networks, to assessment of impact for publicly funded business investment. Small businesses have also benefited from Sollomon when agreeing equity rounds, setting up employee incentive schemes, or identifying security in their IP for lending, while large organisations (corporates and universities) have used the tool successfully to assess commercialisation potential for early stage technologies prior to market development.

CEO of Augmentra, Craig Wareham, used the Sollomon valuation tool for the company’s Viewranger software and found the exercise “extremely insightful.”He explains: “Initially we used it to assess the value of our IP as a key component of the value of our business. The output document was then used as a basis for discussion at Board level around our existing IP position, protecting our IP and realising its potential. It was a very valuable exercise."

Latest improvements to Sollomon include the introduction of explanatory icons for each section of the report, which as before can be downloaded in PDF form or shared via the Inngot website using its unique 19-character keycode. The order of the sections has also been revised, placing actual and projected financial figures directly alongside the value calculations to provide a simpler overview. Graphics have also been introduced to provide an at-a-glance view of the projected income trend, and more space has been provided to catalogue the various registered IP rights which may be associated with a particular innovation.

CEO Martin Brassell commented: “we have taken this opportunity to incorporate feedback received from funders, lenders and individual company users of Sollomon. We believe we’ve now made the reports as intuitive as the software which we provide to create them. It’s very satisfying to see this innovative tool being put to such good practical use in so many different contexts.”