Quantiply Scotland Kickoff Event

#QuantScot // @quantiplyco

EFHxScotland Kickoff

Making IP Count


Gordon Stuart

Informatics Ventures // @infventures

Brought to you by


Richard Blakesley

Quantiply // @rchrdblakesley


Entrepreneurial Finance Hub


QUANTIPLY


#QuantScot

@quantiplyco


Agenda

1. Introduction - Richard Blakesley // Quantiply2. Scotland - Sandy Finlayson // MBM Commercial3. The Process - Matt Johnson // Quantiply4. Martin Brassell // Inngot5. Stephen Robertson // Metis Partners6. Steven Baird // Corporate Financier7. Julio Romo // twofourseven8. Workshop9. Rachel Gwyon // Scottish Government

10. Next Steps11. Drinks/Refreshments


We...

● Are a financial technology company

● Connect Innovative Growth Companies with IP-Intelligent Finance

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

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


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


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/begin

http://quantiply.co/begin


Quantiply Scotland

● Launch of Quantiply Scotland pilot tonight

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

● Improve flow of capital to Scotland to augment existing resources


Sandy Finlayson

MBM Commercial // @mbmcommercial


Matt Johnson

Quantiply // @mattcrail


Quantiply Platform

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

ONLINE WORKFLOW PLATFORM



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


Martin Brassell

Inngot // @MartinBrassell

Intellectual property and finance: the backdrop“Too often, through risk aversion or banks’ conservative lending practices linked to property as security, IP is not catered for by traditional bank lending. Intellectual Property is too important an asset to be undervalued by banks who are the main source of finance.

“That is why I commissioned a report to explore how we can improve SMEs’ access to capital. We will look carefully at its recommendations in order to better support this country’s creators and IP-rich businesses.”

Secretary of State for Business, Innovation & Skills, October 2013

Intellectual property and finance: the positionEquity investors ‘get’ IP (to a degree)• They care a lot about growth, and therefore opportunity and risk, in which

IP has a central role • They have an opportunity to benefit from value appreciation

High street banks have generally found IP difficult• Normally take commodities as collateral (and/or use personal guarantees)• No experience with IP – don’t know what it would be worth in default, or

how to realize value from it• Because IP is unique, every example looks like a ‘one-off’

However, things are beginning to change…• Banks and alternative lenders are increasingly aware that many

companies just don’t have or use tangible assets any more…

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

Appraise report: actionable IP insights

Automatically generated on completion of your profile

Provides ‘flags’, explanations and links in three categories• Risks – areas where your IP could be vulnerable• Opportunities – ways to strengthen or broaden your IP• Information – things you should know about the assets identified

Review items, mark as complete, and return as often as you like

Critiques what you have identified

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

Innsight report: cross-checking of salient factsEssential information on five topics• Quantity/quality of investment involved• Ongoing commitment to innovation and development• Contribution of assets to income• Security potential• Ownership position

Refreshes the parts online tools can’t…

Basic ‘due diligence’ to increase lender/investor confidence

Straightforward, useful and enlightening

Visit www.inngot.com to learn more

‘We think it’s a really good, structured process. I would thoroughly recommend it to an early stage business’

Chris WalkerDiamond Hard Surfaces

‘It reminded us why we set the business up. It was incredibly useful... It just enables discussions really’

Tim ChaterKoji Drinks

‘The action plan addresses loads of things we would never have thought of… it’s a very straightforward process’

Alexei LeveneDesolenator

‘The tool was brilliant…What it did do was show that we had more or less covered all the bases’

RussellTrident Cloud

‘Great tools: I have been looking for something like this, as I am aware of the lack of IP knowledge among banks and funders.’

Robert GordonIntelligent Organics

http://www.inngot.com


Stephen Robertson

Metis Partners // @metis_stephen


Steven Baird

Corporate Financier // Quantiply Partner

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Julio Romo

twofourseven // @twofourseven

HOW COMMUNICATIONS AND MARKETING CAN POSITION YOU FOR SUCCESS

YOUR START-UP NEEDSINVESTMENT AND PEOPLE

YOU WANT TO BUILD A PROFESSIONAL COMPANY

COMMUNICATORS AND MARKETING

PROFESSIONALS CAN HELP

PROFESSIONAL COMMUNICATIONS AND MARKETING THAT HELPS …

…SECURING ANGEL INVESTMENT AND

VENTURE CAPITAL TO GOING PUBLIC

COMMUNICATIONS FACT

Research from DAVID KIRSCH,* BRENT GOLDFARB, and AZI GERA

H. Smith School of Business, University of Maryland (2009)

WHAT INVESTORS EXPECT

● Details on your marketing and communications

●Who your audiences are

●What your messages are

●Your spend on branding, marketing and communications

●If you have ownership of your digital footprint

●Media and stakeholder relations experience of your founders

THE COMMUNICATIONS JOURNEY

WHY COMMUNICATIONS IS ESSENTIAL

➔ Communications is more than just PR and media relations

➔ It helps identify your audiences and stakeholders

➔ It establishes your messaging and your tone-of-voice

➔ It uses communications to build relevancy with each audience group

➔ It works to build reputation and trust

➔ It supports business developmentReid Hoffmann Venture Capital Journal

THE ‘YOU’ BRAND IS ALSO IMPORTANT

Before there is

a company,

there is you!

CONTACTJulio Romo, MCIPRCommunications Consultant, Digital and Innovation Strategist

T: UK: +44 7812 374040

E: [email protected]

Blog: www.twofourseven.co.uk/blog

: tfs.me/21stPR

: twitter.com/twofourseven

: linkedin.com/in/twofourseven

Contributing Author of the top-selling CIPRShare This and Share This Too -The Social Media Handbooks for PR Professionals

mailto:[email protected]

http://www.twofourseven.co.uk/blog

http://tfs.me/21stPR

http://twitter.com/twofourseven

http://linkedin.com/in/twofourseven

http://linkedin.com/in/twofourseven


http://www.youtube.com/watch?v=pl3vxEudif8


Workshop: Siobhán Jordan

Interface // @InterfaceOnline


Case Study: Bowie Bonds

★ In mid-90’s David Bowie and his manager were looking for ways to raise cash from his back catalogue

★ The innovation was ‘Bowie Bonds’ - asset-backed securities where the underlying asset was intangible

★ Investors bought a share of royalties generated by the songs over next ten years

★ Bowie raised $55m and added a financial innovation to his long list of creative innovations


Discussion

Which part of the markets work? Which parts don’t? What are your biggest frustrations?

What innovation(s) in finance could help solve the funding challenges which growth companies face?

How can technology help?

Elect someone from your team to introduce companies at the table and your takeaways from the discussion


Rachel Gwyon

Scottish Government // @rgwyon


Next Steps


What Happens Next?

1. Go to quantiply.co/begin

2. Create profile

3. Link over to Inngot and use code QPY52456

4. Develop your inventory and valuation if appropriate

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

6. 15 March: Investment Readiness Workshop

7. 19 April: Investor Showcase


Thank You