Understanding the Value of Intangibles

It has long been recognised that intangibles account for around 75% of the value stock markets attribute to corporates. The recent Hargreaves Review also highlighted that company investment in this area now outstrips expenditure on tangible assets (by £137bn to £104bn in 2008). However unquoted companies, especially early stage businesses, often find it difficult to identify and leverage their IP and intangibles, which are generally off-balance sheet.

BBAA associate member Inngot offers online tools to describe and value intellectual property and intangibles, to facilitate their use in a wide range of funding and exploitation contexts. The key elements of its service are a web-based profiling system and the Sollomon IP valuation methodology, developed with specialist input from Grant Thornton UK LLP. Putting these applications on the web enables them to be offered at very low cost, which Inngot feels is particularly important in the early stage environment.

Interest from angel networks has been strong, which CEO Martin Brassell attributes to three factors. “The Inngot profiling system creates visibility of all a company’s intangibles, not just any registered IP. Linking this to an indicative valuation helps companies to make a better informed judgement on the value of their equity, and provides a consistent yardstick for investors when comparing investment opportunities.”

CEO Martin Brassell and Business Development Director Jerry Moore have also been focusing on applications for Inngot within the lending market, where IP valuations can identify potential security in off-balance sheet assets. Inngot’s first bank user is now on board, with several more engaging in trials.

Inngot is already working with networks like xénos to facilitate the investment appraisal process. Further information on Inngot services can be found at www.inngot.com or by calling 01235 854085.