IP Finance

Under PINTAS IP Finance, we raise funds through securitization of your intellectual property assets.

Owners of IP assets can raise money to fund the development and commercialisation of their IP assets through a multitude of channels. The funding ecosystem summarises the funding options available to IP owners in different stages of development of their IP assets, from birth of an idea to development and eventual commercialisation of the ideas

IP Search

IP Finance

IP Structure

IP Enforcement

IP Tax

IP Valuation

IP Capitalization

Owners of IP assets can raise money to fund the development and commercialization of their IP assets through a multitude of channels. The IP funding ecosystem summarizes the funding options available to IP owners.

Intellectual Property Funding Ecosystem

Pintas Intellectual Property Finance Services

Under PINTAS IP Finance, PINTAS helps IP Owners to raise funds through their intellectual property assets in different stages of development of their IP assets,

from the birth of an idea to development and eventual commercialization of the ideas by tapping into the various IP grants,

IP Equity Funding and IP Loan Financing opportunities in the Southeast Asia region.

A. Pintas Equity Financing Services

1. Business Angel Investment

Pintas, together with Alliance of IP Owners (AIPO), facilitates the introduction of IP entrepreneurs to potential investors through presentations and other mechanisms. AIPOANGELS focused on potential investments in the IP based enterprises. Potential members must have prior experience in the IP fields or a strong desire, willingness, and capability to learn substantive components of the IP industry.

2. Venture Capital

Pintas has initiated a deep tech accelerator fund with AIPO Capital LLP to help commercialization of deep technologies from universities/ research institutions. In AIPO deep tech accelerator, we provide mentorship, gap funding capacity-building workshops to Spin-offs from universities/ research institutions (RI) help bridging the gap between deep technology IP and the markets.

B. Pintas Intellectual Property Debt Financing

Intellectual property like any other asset class has a value and its rights can be bought, sold, and used as collateral to raise capital or funds. Using IP assets to gain access to credit is gaining popularity globally and locally of which a number of lenders and financial institutions are beginning to provide a credit on the back of qualified IP assets either partially or fully collateralized by these IP.

IP Owners can also avail themselves of debt financing as a source of funding to finance the development of their IP based business ventures. However, as banks are generally more risk-averse, debt financing is more common at the later stage of IP development, usually at the growth stage of an IP based business venture as illustrated by the diagram below.

C. Pintas Grant Facilitation Services

PINTAS acts as a facilitator for those who are interested in applying for government grants in various Southeast Asia jurisdictions like Singapore, Malaysia, Thailand and Brunei. We provide the latest updates and information on IP related grants to interested parties.

The contributions of IP based entrepreneurship (or technopreneurship) in spurring economic growth, creating high income jobs and new industries which generating high returns are widely acknowledged.

To encourage the development of technopreneurship, many governments have come out with grant and financial incentive scheme for development and commercialisation of IP assets. The grant scheme aims to provide generous low-cost funding to qualify technopreneur to kick start their ventures.

There are basically three sources of funding for IP Owners, namely government grant, equity financing and debts financing.

(A) Grant Financing
The contributions of IP based entrepreneurship (or technopreneurship) in spurring economic growth, creating high income jobs and new industries which generating high returns are widely acknowledged.

To encourage the development of technopreneurship, many governments have come out with grant and financial incentive scheme for development and commercialisation of IP assets. The grant scheme aim to provide generous low cost fundings to qualified technopreneur to kick start their ventures.

The sources of grant in Malaysia are:-

  • Matrade
  • Malaysian Biotechnology Centre
  • Malaysia Technology Development Centre
  • Mimos Berhad
  • Ministry of Science, Technology and Innovation
  • Ministry of Entrepreneur and Co-operative Development
  • Small and Medium Industries Development Corporation
  • Multimedia Development Corporation (MDeC)
  • Cradle

These fund providers are mandated by the government to offer different types of grants to IP owners in different phases of IP development, namely from creation, commercialisation to market enlargement of their IP assets

Amongst the keys things to look at in applying for IP Grant are:-

  • Focus of the grant
  • Eligibility
  • Percentage of funding
  • The unwritten rules (what can be claimed, the fine print, when to incur etc)
  • How to maximise your amount
  • How to shorten your time

(B) Debt Financing
Consider the means, targets, timing, cost, etc

P Owners can also avail themselves to debt financing as a source of funding to finance the development of their IP based business ventures. In certain jurisdiction like US and China, IP assets can be used as collateral to secure loan from banks. However, as banks are generally more risk adverse, debt financing are more common at the later stage of IP development, usually at the growth stage of a IP based business venture as illustrated by Diagram 2.5.2 below.

Diagram 2.5.2, Source: TEN3COACH

(C) Equity Financing
Another important source of financing of IP based business ventures is equity investment from angels, venture capital or private equity players. Angles are affluent individuals who invest in seed or early start ups, venture capital provides equity funding to early stage technopreneur ventures while private equity back established enterprise using a combination of debt and equity.Venture capital bridges IP owners and technopreneurs with the much need start up capitals and business know how in a combination whuch is capable of great value and wealth creation. Spectacularly successful companies like Amazon and Google are made possible by venture capital investment. Diagram 2.5.3 summarises how huge wealth was created by Venture Capital investment in the case of Amazon.com

Diagram 2.5.3, Source: TEN3COACH

IP Friendly Stock Exchanges
IP Based Enterprises can also raise funding from the general public by listing their IP holding companies in some of IP friendly stock exchanges in the region. The quantitative and qualitative criteria for IPO in Malaysia, Singapore and Hong Kong are summarised as follows:-

1. Quantitative Criteria

Singapore
Hong Kong
Malaysia
Main board
Main board
Main board
Pre Tax Profit > $7.5 million over 3 years and > $1 million in each year
>HK$50 million in the last 3 years with > HK$20 million in the latest year
Pre Tax Profit > RM20 million for 3-5 years, RM6 million for latest year
Pre Tax Profit > $10 million for latest 1-2 years
Market Cap of > HK$200 million
Market Cap of > RM500 million

 

Singapore
Hong Kong
Malaysia
Second Board
Second Board
Second Board
No quantative criteria
Positive cashflow
No quantative criteria
Engage a sponsor
>HK$20 million cash flow in the latest 2 years
Engage a sponsor



2. Qualitative Criteria

  • STRENGTH AND INTEGRITY OF PROMOTERS & MANAGEMENT
    Strong background & experience.
  • BUSINESS MODEL
    Unique features / competitive edge over competitors.
  • BUSINESS PROSPECTS
  • R&D CAPABILITIES
  • INTELLECTUAL CAPITAL
  • STRATEGY & EXECUTION
  • CONFLICT OF INTERESTS



There are many advantages as well as considerations for IP Based Ventures to raise funds through public listings. The Pros and Cons of public listings can be summarised as follows:-

Advantages

  • Access to capital – for growth & expansion, retiring existing debts, corporate marketing and development, acquisition capital and corporate diversity
  • Correct Valuation – share price
  • Compensation – to attract & retain talented employees via performance based incentive
  • Brand Value – prestige, image and publicity
  • Merger & Acquisitions – expansion
  • Exit Strategy – offering reward & financial freedom for the founders & employeesse



Considerations

  • Disclosure of information – public disclosure eg shareholding pattern, quarterly & annual financial statement, profile of directors, etc
  • Decision take time – BOD approval
  • Cost of IPO – one time expenditure
  • Complication of operation

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