What is IP-Intelligent Finance?

The engine driving economic progress has seen significant shifts in the recent past. Prior to the information technology revolution, tangible assets such as machinery, equipment and the like had been the source of value creation in the economy. The digital revolution has changed that — now the core driver of growth and value creation is not able to be seen or touched, but is instead intangible in the form of intellectual property such as patents and trademarks, and less formal IP including software, databases, networks and know-how. Since the 1990s significantly more investment has been made by companies into intangible assets, and their economic contributions have dramatically outpaced their tangible counterparts.

“In 2011 the UK market sector invested £126.8bn in knowledge assets, compared to £88bn in tangible assets” — UK Intellectual Property Office

High-growth firms are statistically richer in intangibles than their slower-growth counterparts — the scale-up economy is driven by innovation and its underlying knowledge and IP. However, this presents a problem to the innovative startups and scale-ups throughout the UK and Europe. Intangible assets are difficult for banks and investors to understand and value, therefore these assets are not fully considered in funding decisions. This creates a risk and validation gap for innovative growth companies — not a funding gap, we would argue, because we believe there is plenty of funding available.

Entrepreneurial Finance Hub (EFH) bridges this risk and validation gap. The platform delivers tools and analysis on the strength and value of intangibles to make sure innovative growth companies are investment-ready. For investors and lenders, EFH provides qualified leads and a better understanding of IP assets for potential investees. This is IP-intelligent finance.

Join our platform of trusted partners by getting in touch and providing your details and a brief proposition to become more IP-intelligent.


Originally published at www.entrepreneurialfinancehub.global.