Intangible Assets in Capital Markets
Capital choices Intangible assets in capital markets IA for development and commercialisation As intangibles emerge as an asset purposes, even before start up. While funds class, financial firms are developing and firms often differ in structure, these a variety of mechanisms to utilise enterprises work with companies either to buy the IP/IA or invest in the company for them in the capital markets commercialisation of the IP/IA. Due to the private nature of private By Ian Ellis and Kenan Patrick Jarboe equity deals, many details about this group of firms and funds have not been disclosed. Over the past decade, intellectual capital has The large investment bank Deutsche Bank become foundational for many companies, (DB), however, announced publicly that it is while intangible assets – such as currently managing three IP funds totalling intellectual property (whether patents, more than €150 million invested in IP trademarks, copyrights or trade secrets), assets. Partnering with IP Bewertungs AG, brand value, corporate reputation, franchises DB has identified and purchased IP assets and human capital – have emerged as a for further legal and commercial refinement valuable asset class. The capital markets and to be sold and/or licensed. financial system have responded to this Another IA-focused firm, IgniteIP, calls shift. Financial firms have invented new itself a “full-service IP placement vehicles and updated existing models to enterprise” that works with inventors, IP provide capital to companies with owners and investors to commercialise significant value in intangible assets (IA). and/or license IP. IgniteIP’s model differs Based on published reports, we have from the traditional VC model in that it has been able to identify examples of the array paid attention to IP development nearly of models for equity and debt financing independent of the business itself.
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