Richard Bolton in Investment


IP Finance Toolkit Released by the Intellectual Property Office

The IP Finance Toolkit has been published to help with the communication between business funders and SME’s. The document outlines the processes SME’s should take to provide adequate evidence to business lenders prior to application. Download and read the toolkit here.

The toolkit also aims to help companies form a more effective management system for their IP. The Intellectual Property Office also hopes to expand SME's knowledge regarding the variety of funding opportunities that are currently available to them. 

By using flow charts, the IP Finance Toolkit shows the process that IP asset rich companies can follow to show that their company is viable for growth. The flow charts can also be used by bank and funding companies to know if a company with IP will benefit from a financial injection.

IP management is used to to show the commercial assets a company potentially has. By using an effective process to record IP within a business, the value and potential growth of the business becomes clearer through the eyes of investors, making SME’s more commercially ready. Companies can also check their IP rights with the ‘IP assets checklist’ which can be found within the toolkit.

The value of the IP a company controls is important when requesting funding from lenders and an IP valuation can increase the reliability of a company's estimated worth. The three primary valuation methods to calculate the worth of SME’s are as follows:

  • Cost: This includes skilled labour, materials, research, prototypes and equipment.
  • Market Value: Judging the recent trends of a business within the marketplace can be a more reliable measurement of an IP rich company’s value. 
  • Income/Economic Benefits: This looks at the potential income the IP owned by a company could generate along with the cost of promotion to generate the income.

For more information on IP finance, download and read the full toolkit here.

  • Creative Industries
  • Access to Finance