113 Botanicals was looking for ways to validate and demonstrate the value of the IP and intangibles assets it was developing. Working with Innovate UK EDGE, the company had already completed a full IP audit, via the UK’s IP Audit Plus scheme; but it wanted a quick and cost-effective way to demonstrate the value of its IP.
IUK EDGE suggested it should use Inngot’s innovative online tools to generate an indicative valuation for its IP and intangible assets.
Kate Cook, 113’s COO, says: “We’re pre-revenue, and we’re looking at a range of ways to support discussions with potential investors. We’ve already raised over £1.4m which values the company at £30m.”
She stressed that, when developing novel drugs and treatment regimes, companies like 113 have to work strictly within the UK’s regulatory framework, which can make the time to market slower than in other high-tech sectors. So there is a need for some way of validating what the company is doing. As she says: “What we are doing is extremely complex, so we wanted indicators, like the IP Audit, or the Sollomon valuation. Sollomon is particularly useful because it’s not just what we say, it’s what a reputable and independent third party says.”
Inngot’s online platform helps a company map the complexities and inter-relationships between its IP and intangible asset portfolios using the Goldseam tool to build an IP profile. This output from Goldseam, plus easily accessible financial data from company accounts and business plans, is then fed into Sollomon to produce indicative IP valuations in language that lenders and investors can easily understand and that gives them the comfort they need to make an offer.
The company is in the process of filing new patents, and has also received an R&D tax credit; once the new patents have been filed, she plans to update 113 Botanicals’ Goldseam IP profile and then conduct another Sollomon valuation, including the new R&D tax credit.