IPM Ventures

Fund-raising for knowledge-based businesses

Bankers and investors find it difficult to fund knowledge businesses unless it has legally protected its intellectual property rights, and has a clear business strategy and understanding for building value. Investors and lenders want to know:

  • Have all relevant intellectual property rights been secured?
  • Can the intangible assets be used as security for debt finance?
  • What due diligence issues should be addressed to satisfy potential investors?
  • How can you leverage your know-how to create additional shareholder value?
  • Does the licensing strategy create sustainable value?

The infamous ‘equity gap’, where an investment opportunity is too small for institutional and corporate investors but which can appeal to business angels, is even more challenging for knowledge based businesses who have an innovative product or service, but little in the way of tangible assets, and who need to raise finance.

Our modular based risk assessment and management tools include:

  • Innovation management and commercialisation strategies – includes scoping and defining contractual and licensing relationships with suppliers, customers, licensors and licensees to support the business model and build additional shareholder value.
  • Knowledge Management Review – a practical holistic review of how an organisation manages its knowledge based assets including its intellectual property rights and intangible assets. This includes a risk-based audit to review the legal status of Rights such as trade marks, copyright, designs and patents held by an organisation, and to identify areas of risk.
  • Risk Assessment – a programme to assess and quantify the commercial and operational risks of infringement of rights and unauthorised copying.
  • IPR and business valuations – valuation of both goodwill and intellectual capital assets of a business for the purposes of a sale, flotation, fund-raising, joint ventures, management share options, licensing, or tax.
  • Intellectual Capital Management – financial modelling techniques for entrepreneurs and managers to understand the creation of value of intellectual capital within their business and to verify that value to investors and buyers.