Research project develops new solution to give SMEs easier access to finance
The CoraPatents research project is developing a solution for patent valuation to support innovative companies in accessing loans on acceptable terms.
Nowadays, companies no longer need to have high tangible assets to generate high profits. Uber doesn’t own any cars, Booking doesn’t own hotels, and eBay doesn’t own any goods. Corporate values are increasingly shifting from the material to the immaterial side. In fact, intangible assets already make up 29% of the enterprise value of the STOXX600 companies.
However, intangible assets such as brand awareness or intellectual property are harder to measure, and so companies that rely on intangible assets to obtain credit and investment will struggle.
From CoraPatents’ point of view, patents are “the most tangible of the intangible assets” and can be monetized through licensing and securitized as collateral. The project, which brings together JRC Capital Management (coord.), Intracom Group, Privé Technologies, INOVA + and Matrix Investment, aims to establish the methodology of patent valuation as a recognized standard for company valuation in the financial industry.
To counter misconceptions about patent valuation, CoraPatents published a number of study cases that show that, for example, R&D expenditure and the number of patents are not a good indicator of patent value; or that the most valuable AI patents are generated in Europe and, surprisingly, in countries like Brazil, Russia and Mexico, contrary to the idea that China is leading the AI race.
A precise patent valuation not only opens up financing opportunities for SMEs and start-ups, but also supports banks, investment funds and venture capitalists in reducing risk and finding outstanding deals.
Further information on the study cases and CoraPatents can be found at http://corapatents.eu/
CoraPatents has received funds from the joint Eurostars-2 program (project E! 11618) with co-financing from the research and innovation program of the European Union Horizon 2020 and the national funding authorities of Germany, Austria and Portugal.