Quantiply Scotland: Getting Investment Ready Workshop

#QuantScot // @quantiplyco

Getting Investment Ready Workshop

Quantiply Scotland


#QuantScot

@quantiplyco


Agenda

1. Introducing the Quantiply Process2. Getting Investment Ready // Connect With the Experts3. Networking and drinks


We...

● Are an online investment readiness and access to finance platform for innovative growth companies

● Deliver the tools and analysis to ensure you are investment ready

● Connect Innovative Growth Companies with IP-Intelligent Finance

○ Ensuring that the most critical IP assets are tied into funding decisions


Challenge: Capital Not Flowing to Innovators


Challenge: Technology Cycle is Shortening All The Time


Challenge: Disruption and Fragmentation

● Opendesk is a global platform for local making. You can use it to download, make and buy work space furniture.

● What are their assets? How do you value them?

● Disruption and fragmentation is not reserved for financial services - it is happening across all industry sectors

Opportunity or threat?


Intangibles Are THE Source of Economic Growth

Rise of Investment in Intangible Assets


Debunking the Myth: It’s Not a Funding Gap!

● There is plenty of finance available

● Problem: funds not flowing to innovative high growth companies

WHY?

● Reactionary approach of funders

● Lack of transparency in valuation

● Lack of data in asset pricing

RISK AND VALIDATION GAP


What’s Needed to Scale Up

Scale-Up UK: Growing Business, Growing Our Economy

Two year research project on what is needed in the marketplace to support scale-ups


Market Size

● 640,000 growing SMEs

● 50,000 startups

● 8,000 scale-ups

50 PERCENTProportion of jobs created in the UK by just 6% of the fastest growing companies

£38.7 BILLIONAdditional turnover over 3 years if we move 1% of SMEs into high-growth category


WHERE DO YOU GO FOR FUNDING?

ARE YOU INVESTMENT READY?


Our Solution

Signpost businesses to support services to ensure they are ready for investment

Identify & connect companies to right sources of capital for their current stage of growth

Deliver tools and analysis to fill risk and validation gap and enable IP-intelligent finance


Quantiply Helps Advisers/Mentors Support Startups

● We are collaborators not competitors

● Checklist and tools to help support companies to ensure they are investment ready

● Use feedback and dashboards to help companies come to best decisions on how to proceed

● Work with company to weigh funding options outlined and suggested by Quantiply


The Virtuous Circle

DataVolumeStandardisationAccuracyConsistencySuccess Rate


The Virtuous Circle (cont)

Growth CompaniesHave: Investable business modelsCapacity to scale and grow

Need: Consistent and appropriate supportAccess to whole of market for finance & services

Services/FinanceHave: Service expertiseLocal and/or national reach

Need: Validated leadsConsistent access to volume business

Regional GovernmentsHave: Access to local ecosystemPower to convene

Need: National services delivered locallyCatalyst for ongoing innovation & scale-up

Accelerators/IncubatorsHave: Cohorts of growth companiesMentors & consultants

Need: IP-specific servicesFocused access to finance support


Our Revenue Model

● No upfront cost to growth companies

○ Only pay for services used

○ No equity taken

● Referral fees from service providers

● Success fees from growth companies with successful fundraise (2 percent of raise)


What’s in it for you?

● Growth Companies:

○ Get prepared for IP-intelligent finance

○ We connect you to appropriate finance providers taking the guesswork out of where to go for finance

● Finance and Service Providers:

○ Quantiply provides well prepared and qualified leads with a clear picture of IP value

● Begin today: quantiply.co/scotland/


Quantiply Scotland

● In the middle of the Quantiply Scotland pilot

● First step in plan to establish permanent presence on the ground

● Improve flow of capital to Scotland to augment existing resources


The Process

Matt Johnson // Quantiply


Quantiply Platform

Quantiply Investment PanelDevelop IP evaluationCreate Quantiply profile Investment readiness dashboard Connect with finance

ONLINE WORKFLOW PLATFORM


QIP Dashboard

Traffic lighting system on four categories:

● Business Model - Is it feasible and scalable?● Intellectual Property - Is it valuable and well

protected?● Team - Is it well rounded?● Investment Readiness - Is the overall investor

proposition strong?


A well-rounded team is critical to success and the primary factor for investors in making an investment decision

We look at whether the skills and expertise are present to execute on your business model and how you plan to acquire missing skills

Team


Knowledge and innovation drive value in your business

We link you over to our partners at Inngot to develop your free intangible asset profile

Intangible Assets and Innovation


Services On Our Platform

R&D Tax Credits

PR/Communications

Marketing

General Legal

IP LegalInsurance

IP Strategy

Business PlanGrants

Human Resources

Accounting


Match To Finance

● Identify appropriate types of finance

○ Equity, debt, grants, peer-to-peer, crowdfunding...

● Use Quantiply and third-party data to identify similar deals

○ Who is funding similar businesses

● Introduce companies to appropriate finance providers

○ We provide qualified deal flow of investor-ready propositions, enhancing chances of successful funding outcome


Intangible Asset Evaluation

Inngot

Four steps to make IP bankable (and more investable)Standardize the way value-producing intellectual property and intangible assets are identified and described

Routinely consider how protection could be improved

Quantify the value that the assets represent

Check the portfolio’s credentials

AssetProfile

AppraiseAction Plan

SollomonIP Valuation

InnsightReport

Intermission: a post-lunch guide to intangible assets

Formal intellectual property rights like patents, trade marks, industrial designs, copyright

Non-physical things you own, like trade secrets, processes,

know-how, contracts – ‘intangibles’

All intellectual capital you don’t own, but you use – including your team, and IP licensed to you

Inngot profiles: describing the whole ‘egg’

Know-how250+ types 17 ‘families’

Benefits26 types

3 ‘families’

Markets20 sectors

350+ sub-sectors

Intellectual assets5 families60 types

Registered IP rightsPatents, trade marks,

registered designs

Development stage6 stages

18 sub-stages

Helps you generate a standardized, comprehensive inventory

Sollomon IP valuation: simple and consistent

Investment5 questions

Use historical accounts and estimates

HistoryUp to 8 questions for trading businessesUse historical accounts where applicable

Forecasts5 questions

3+ years’ projections required

Governance‘Hygiene factors’

3-5 questions

Immediate report online ; all results checked/moderated offline


Get Started!

1. Go to quantiply.co/scotland

2. Create profile

3. Link over to Inngot and use code QPY32733

4. Develop your inventory and valuation if appropriate

5. We will come back with your QIP analysis and services dashboard


Getting Investment Ready Workshop

Quantiply Scotland


#QuantScot

@quantiplyco


SpeakersHour 1: Brief introduction to the services and speakers

● Sandy Finlayson @ MBM Commercial: Legal● Hannah Roche @ Holistic HR/MBM Commercial: HR Legals● Sandy Findlay @ Jumpstart: R&D Tax Credits● Dorothy Burke @ GH Associates: European Grants● Julio Romo @ TwoFourSeven: PR and Communications● David Hughes @ Scottish Enterprise: Training and Support for High Growth Businesses● Kezia Williamson @ Knowledge Transfer Network: Connecting Innovators● Jane Kennedy @ Talent Spark/Eden Scott: Recruiting and Job Board● David Barr & Gill Rattray @ Entrepreneurial Spark: Business Accelerator● Sara Robertson: StartUp and ScaleUp Adviser● Rachel Gwyon @ Scottish Government: Business Development● Callum Campbell @ Fireflock: Alternative Finance Platform

Hour 2 - 3: One-on-one sessions between companies and service providers


quantiply.co/scotland

Use the code QPY32733