Making Start ups Intangible assets More Tangible€¦ · Making Start ups Intangible assets More...
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The Relevance of Intellectual Property (IP) for Acquiring/Securing Funding: Making Start ups Intangible assets More Tangible Luigi Amati – CEO META Group THIRD WIPO-INSME INTERNATIONAL TRAINING PROGRAM: FINANCING YOUR BUSINESS WITH INTELLECTUAL PROPERTY December 1 and 2, 2010, WIPO Headquarters, Geneva, Switzerland INTERNATIONAL NETWORK For SMALL AND MEDIUM-SIZED ENTERPRISES
Transcript of Making Start ups Intangible assets More Tangible€¦ · Making Start ups Intangible assets More...
The Relevance of Intellectual Property (IP) for Acquiring/Securing Funding:
Making Start ups Intangible assets
More TangibleLuigi Amati – CEO META Group
THIRD WIPO-INSME INTERNATIONAL TRAINING PROGRAM: FINANCING YOUR BUSINESSWITH INTELLECTUAL PROPERTY
December 1 and 2, 2010, WIPO Headquarters, Geneva, Switzerland
INTERNATIONAL NETWORK For SMALLAND MEDIUM-SIZED ENTERPRISES
Knowledge Intensive Companies (KICs)
Key “problems” of KIC
Intellectual Capital
IC Readiness
Examples
knowledge intensivecompaniesWe will focus our attention onto a particular typeof SMEs: Knowledge Intensive Companies (KICs).They are small in numbers but cover a critical role:
strongly affecting employment
playing an increasingly active part in GlobalMarkets and Value Chains: initiators
knowledge intensive companiesFew numerically but playing fundamental roles:
For both quality and quantity employment: 2% ofnew companies produces 50% of newemployment in Europe and 70% in UsaFor the dynamism of the economy: Nokia alonehas changed Finlandia phisionomy andperception, Google and Facebook are changingthe way the world communicates and is informedCreative destruction: today AT&T only exist as abrand
Key “problems” of KIC
1st “Problem”:their value (assets) is mainlyrepresented by Intangibles:research(ers) capabilities – humancapital, the technology embeddedand the possession of “IP products”
2nd “Problem”:Knowledgeintensivecompanies need (alot of) money!
3 Fs are notenough!
(Fools/Founders,Family, Friends)
KNOWLEDGE INTENSIVEIDEAS
EARLY STAGERISK FINANCE
Global Value Chains
Global Markets
Investor Readiness
IC Management
New KICs(CONSTANT FLOW OFINDEPENDENT IDEAS
CONCEPTS, PRODUCTS)
KICs and Seed Capital
Business IdeaRecognition
KnowledgeIntensiveCompany!
Technology foresight,trend researchIdentification of markettrends
Trainings forentrepreneurs andenterprisesSkills and abilitiesneeded forsuccessfulbusinesses
Tailor made evaluationMentoring – expert support infeasibility study, business plan,etc, preparation
IncubatorLocation / space,equipment and servicesfor getting started andkeep going and growing
Access to financeIdentifying the mostappropriate financingfor enterprises(Business AngelNetwork, proposalsetc)
Entrepreneurial cultureInitiatives, creativity,entrepreneurial spiritstimulationHow to become anentrepreneur
BusinessPlatformPartnershipdevelopment,Technologytransfer, enteringinto markets
A long, challenging and exciting walk, IC being the first step
IntellectualCapital
understand,value and
protectintangibles
Intellectual Capital = Explicit + Tacit KNOWLEDGE
ExplicitUSEFUL IDEA – PatentORIGINAL EXPRESSION – CopyrightDISTINCTIVE IDENTITY (Physical – Shape, Non Physical- Logo)
TacitPEOPLE!PEOPLE!
SECTORS
Biotech – Patents
Renewable Energies, ICT – Electronics,Manufacturing – Patents and/orSecrets
Software - Speed
Intellectual Capital ReadinessMonitoring of competitiveproducts/technologies/patentsCorrectly employing the legal tools inprotecting products/technologiesEnsuring key resources (including people)are protected
IC Readiness of intangible KICs
INTELLECTUAL CAPITAL READINESSKICs require attention in the initial stages to assure anadequate development and protection of their productThe commercial viability of an IP product resides in its actualimplementation on the market place requiring:
the management team must know how to manage theintangible asset i.e. how to employ legal tools protecting theinnovativeness of the idea in order to ensure the exclusiveright to its commercial exploitationIP protection will augment early stage investors’ interests in aparticular KIC by providing further, strong, guarantees onfuture returns on investments
PHARMAESTEBiotech spin-off from the University of FerraraResearch and development of drugs for pain:treatment of pathologies as neuropathic painMedical (biotech) research requires longdevelopment times and very high costs: IPprotection is thus one of the most decisive factorsfor the success of a spin-off
PHARMAESTEThe University of Ferrara has provided the know how: 5 patentsand as many active principles; 3 full time researchers; 4researchers on a contract; 3 high levels scientific advisorsFunding: the company has received €3.2 millionFinancial resources raised for the different developmentphases:
1. Phase 1 (toxicity verification) €6 million
2. Phase 2 (efficacy verification) €12 million
3. Phase 3 (clinical experimentation) €20 million
PHARMAESTEIP protection involves constant monitoringon the state of the art of alternativeproducts and surveys on the IPRs of otherpharmaceutical companies
The Intellectual Capital was secured byinternational patents and a stock option tokey people, critical element was valuation
RAYSOLAR
New manufacturing process for Silicium
Lower cost, higher quality
Everything is still in the head of the twoleading researchers (and in a few drawings)!
Protection through trade secrets
SOLGENIA
ERP Systems for SMEsERP built exclusively for SMEs (not a downsize of larger products)It is Software after all!Protection through vesting, bad leaver andlock up ...
