Inngot CEO Martin Brassell speaks at WIPO high-level event on IP-based finance
3 Nov 2022
Inngot CEO Martin Brassell was invited by WIPO to its Geneva headquarters to take part in the global NGO’s High-level conversation on unlocking intangible asset finance event (click for video).
The conference, which took place on November 1st 2022, was attended by around 700 delegates in person and virtually and featured speakers from academia, governments, financial institutions, the insurance industry, the IP world, national IP offices and innovation agencies.
Martin Brassell was speaking in a session covering the challenges to implementing IP-based finance and how they could be overcome.
Martin is a world expert on the use of IP in raising funding and has researched and advised on policy initiatives to help IP-rich companies access the value locked up in their IP and intangibles. His most recent report, Secured lending for SMEs, was published by the OECD in July 2022.
Asked what the biggest challenge was, he said that “where the most challenge and the most excitement is, is around being able to use intellectual property as collateral for lending. In other words, really attributing a recoverable value to it… the challenge there is, before you even get to the question of the financial valuation, how do you determine whether the assets that you're looking at are even suitable for use as collateral at all?”
The solution, he argues, is to “firstly, consider whether the assets will be separable from the business, particularly in the event that it gets into difficulties. You've got to identify whether there is anybody out there who might be interested in buying them or buying the business if it became available. And you've also got to satisfy yourself that the assets are inherently strong enough so that they would withstand any kind of buyer due diligence.”
At the same time, action needs to be taken to educate lenders about IP as an asset class and how it can be used as collateral, so they can see the value of IP and intangibles which do not usually appear on company balance sheets, and reassure themselves about recoverability in the event of a loan default.
Extending IP Collateral Protection Insurance to cover smaller deals suitable for SME and scaleup companies, allowing them to access IP-based lending at affordable rates, would also boost the IP-based finance sector.
Insurance giant Aon has been trailblazing IP CPI; but until now its focus has been on larger deals – from around $30m to $100m. Martin Brassell suggested that if a number of smaller loans could be brought together into a portfolio, then the loan size could easily be as small as $250,000. But insurers would actually face less chance of losses, as the portfolio approach would spread the risk.
Another major step would be to allow banks to claim capital relief on loans using IP as collateral, which could help free up tens if not hundreds of billions of dollars for small but IP-rich companies. Currently, banks can claim capital relief on loans based on tangible assets, but not on those based on intangibles.
Inngot is already working with a number of partners, including WIPO, the UK IPO, HSBC UK, NatWest and big insurance companies, to develop tools to help companies identify and value their IP and intangible assets, and processes to facilitate IP-based lending, as well as to educate relevant stakeholders in the potential value of IP-based finance and policies to support its growth.
Inngot CEO Martin Brassell was invited by WIPO to its Geneva headquarters to take part in the global NGO’s High-level conversation on unlocking intangible asset finance event (click for video).
The conference, which took place on November 1st 2022, was attended by around 700 delegates in person and virtually and featured speakers from academia, governments, financial institutions, the insurance industry, the IP world, national IP offices and innovation agencies.
Martin Brassell was speaking in a session covering the challenges to implementing IP-based finance and how they could be overcome.
Martin is a world expert on the use of IP in raising funding and has researched and advised on policy initiatives to help IP-rich companies access the value locked up in their IP and intangibles. His most recent report, Secured lending for SMEs, was published by the OECD in July 2022.
Asked what the biggest challenge was, he said that “where the most challenge and the most excitement is, is around being able to use intellectual property as collateral for lending. In other words, really attributing a recoverable value to it… the challenge there is, before you even get to the question of the financial valuation, how do you determine whether the assets that you're looking at are even suitable for use as collateral at all?”
The solution, he argues, is to “firstly, consider whether the assets will be separable from the business, particularly in the event that it gets into difficulties. You've got to identify whether there is anybody out there who might be interested in buying them or buying the business if it became available. And you've also got to satisfy yourself that the assets are inherently strong enough so that they would withstand any kind of buyer due diligence.”
At the same time, action needs to be taken to educate lenders about IP as an asset class and how it can be used as collateral, so they can see the value of IP and intangibles which do not usually appear on company balance sheets, and reassure themselves about recoverability in the event of a loan default.
Extending IP Collateral Protection Insurance to cover smaller deals suitable for SME and scaleup companies, allowing them to access IP-based lending at affordable rates, would also boost the IP-based finance sector.
Insurance giant Aon has been trailblazing IP CPI; but until now its focus has been on larger deals – from around $30m to $100m. Martin Brassell suggested that if a number of smaller loans could be brought together into a portfolio, then the loan size could easily be as small as $250,000. But insurers would actually face less chance of losses, as the portfolio approach would spread the risk.
Another major step would be to allow banks to claim capital relief on loans using IP as collateral, which could help free up tens if not hundreds of billions of dollars for small but IP-rich companies. Currently, banks can claim capital relief on loans based on tangible assets, but not on those based on intangibles.
Inngot is already working with a number of partners, including WIPO, the UK IPO, HSBC UK, NatWest and big insurance companies, to develop tools to help companies identify and value their IP and intangible assets, and processes to facilitate IP-based lending, as well as to educate relevant stakeholders in the potential value of IP-based finance and policies to support its growth.
Inngot CEO Martin Brassell was invited by WIPO to its Geneva headquarters to take part in the global NGO’s High-level conversation on unlocking intangible asset finance event (click for video).
The conference, which took place on November 1st 2022, was attended by around 700 delegates in person and virtually and featured speakers from academia, governments, financial institutions, the insurance industry, the IP world, national IP offices and innovation agencies.
Martin Brassell was speaking in a session covering the challenges to implementing IP-based finance and how they could be overcome.
Martin is a world expert on the use of IP in raising funding and has researched and advised on policy initiatives to help IP-rich companies access the value locked up in their IP and intangibles. His most recent report, Secured lending for SMEs, was published by the OECD in July 2022.
Asked what the biggest challenge was, he said that “where the most challenge and the most excitement is, is around being able to use intellectual property as collateral for lending. In other words, really attributing a recoverable value to it… the challenge there is, before you even get to the question of the financial valuation, how do you determine whether the assets that you're looking at are even suitable for use as collateral at all?”
The solution, he argues, is to “firstly, consider whether the assets will be separable from the business, particularly in the event that it gets into difficulties. You've got to identify whether there is anybody out there who might be interested in buying them or buying the business if it became available. And you've also got to satisfy yourself that the assets are inherently strong enough so that they would withstand any kind of buyer due diligence.”
At the same time, action needs to be taken to educate lenders about IP as an asset class and how it can be used as collateral, so they can see the value of IP and intangibles which do not usually appear on company balance sheets, and reassure themselves about recoverability in the event of a loan default.
Extending IP Collateral Protection Insurance to cover smaller deals suitable for SME and scaleup companies, allowing them to access IP-based lending at affordable rates, would also boost the IP-based finance sector.
Insurance giant Aon has been trailblazing IP CPI; but until now its focus has been on larger deals – from around $30m to $100m. Martin Brassell suggested that if a number of smaller loans could be brought together into a portfolio, then the loan size could easily be as small as $250,000. But insurers would actually face less chance of losses, as the portfolio approach would spread the risk.
Another major step would be to allow banks to claim capital relief on loans using IP as collateral, which could help free up tens if not hundreds of billions of dollars for small but IP-rich companies. Currently, banks can claim capital relief on loans based on tangible assets, but not on those based on intangibles.
Inngot is already working with a number of partners, including WIPO, the UK IPO, HSBC UK, NatWest and big insurance companies, to develop tools to help companies identify and value their IP and intangible assets, and processes to facilitate IP-based lending, as well as to educate relevant stakeholders in the potential value of IP-based finance and policies to support its growth.
Inngot CEO Martin Brassell was invited by WIPO to its Geneva headquarters to take part in the global NGO’s High-level conversation on unlocking intangible asset finance event (click for video).
The conference, which took place on November 1st 2022, was attended by around 700 delegates in person and virtually and featured speakers from academia, governments, financial institutions, the insurance industry, the IP world, national IP offices and innovation agencies.
Martin Brassell was speaking in a session covering the challenges to implementing IP-based finance and how they could be overcome.
Martin is a world expert on the use of IP in raising funding and has researched and advised on policy initiatives to help IP-rich companies access the value locked up in their IP and intangibles. His most recent report, Secured lending for SMEs, was published by the OECD in July 2022.
Asked what the biggest challenge was, he said that “where the most challenge and the most excitement is, is around being able to use intellectual property as collateral for lending. In other words, really attributing a recoverable value to it… the challenge there is, before you even get to the question of the financial valuation, how do you determine whether the assets that you're looking at are even suitable for use as collateral at all?”
The solution, he argues, is to “firstly, consider whether the assets will be separable from the business, particularly in the event that it gets into difficulties. You've got to identify whether there is anybody out there who might be interested in buying them or buying the business if it became available. And you've also got to satisfy yourself that the assets are inherently strong enough so that they would withstand any kind of buyer due diligence.”
At the same time, action needs to be taken to educate lenders about IP as an asset class and how it can be used as collateral, so they can see the value of IP and intangibles which do not usually appear on company balance sheets, and reassure themselves about recoverability in the event of a loan default.
Extending IP Collateral Protection Insurance to cover smaller deals suitable for SME and scaleup companies, allowing them to access IP-based lending at affordable rates, would also boost the IP-based finance sector.
Insurance giant Aon has been trailblazing IP CPI; but until now its focus has been on larger deals – from around $30m to $100m. Martin Brassell suggested that if a number of smaller loans could be brought together into a portfolio, then the loan size could easily be as small as $250,000. But insurers would actually face less chance of losses, as the portfolio approach would spread the risk.
Another major step would be to allow banks to claim capital relief on loans using IP as collateral, which could help free up tens if not hundreds of billions of dollars for small but IP-rich companies. Currently, banks can claim capital relief on loans based on tangible assets, but not on those based on intangibles.
Inngot is already working with a number of partners, including WIPO, the UK IPO, HSBC UK, NatWest and big insurance companies, to develop tools to help companies identify and value their IP and intangible assets, and processes to facilitate IP-based lending, as well as to educate relevant stakeholders in the potential value of IP-based finance and policies to support its growth.
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Copyright © Inngot Limited 2019-2024. All rights reserved.
Inngot's online platform identifies all your intangible assets and demonstrates their value to lenders, investors, acquirers, licensees and stakeholders
Accreditations
Copyright © Inngot Limited 2019-2024. All rights reserved.
Inngot's online platform identifies all your intangible assets and demonstrates their value to lenders, investors, acquirers, licensees and stakeholders
Accreditations
Copyright © Inngot Limited 2019-2024. All rights reserved.
Inngot's online platform identifies all your intangible assets and demonstrates their value to lenders, investors, acquirers, licensees and stakeholders
Accreditations
Copyright © Inngot Limited 2019-2024. All rights reserved.