Work for the UK Intellectual Property Office (IPO) and the Department for Business, Innovation & Skills (BIS) has established that the majority of UK business investment, and business value, now lies in intangible rather than fixed, tangible assets. Now, the IPO has commissioned Inngot and Valuation Consulting Co to investigate the role of IP in facilitating business finance and economic growth.
While IP-backed finance is gathering pace on the international stage, the area is not without its challenges, including asset identification, due diligence procedures, valuation and value realisation. This project has been initiated to investigate ‘what works’ in raising finance for innovation investment, and barriers to the wider use of intellectual property and related assets across the funding landscape, to inform the development of effective solutions.
This new qualitative study is the first of its kind. It is particularly directed at investigating how these value-producing intangibles can be harnessed more effectively to meet the funding requirements of knowledge-based small and medium enterprises seeking to innovate and grow. The results, drawing on markets where IPRs are used for funding, will be used to develop methods to enable wider application where lenders and IP rich enterprises could both benefit.
Martin Brassell, CEO of Inngot, and Kelvin King, Managing Director of Valuation Consulting Co, commented:
“Our extensive work with banks, pension funds, venture capital companies, private investors and many specialists in the finance world has demonstrated that there is real scope to bring IP rights and intangibles into the lending decision process - the type of funding on which most businesses rely. We are delighted to be collaborating on this project, which will generate important, actionable insights into the importance of leveraging all a business's value-producing assets to support growth.”
The UK Government has accepted many of the recommendations made in Banking on IP, the first detailed investigation into the link between IP and finance, co-authored by Inngot CEO Martin Brassell. You can read the official response here