The Client

An early-stage Fintech business that has developed a disruptive crypto wallet, which provides consumers with cryptocurrency exchange services and portfolio management. The Company had successfully raised over $2m from crowdfunding, had ‘soft-launched’ in 2020 and was now looking to make a secure a major fundraise ahead of its European launch. The Company has developed patent-backed security software and provides a wallet and payments platform for currency and cryptocurrency trading.

The Assignment

The Company has invested significantly, developing a major consumer brand within the emerging cryptocurrency market and a sophisticated and scalable software solution to take advantage of the immediate and growing demand. The financial statements however do not reflect any ‘value’ of these assets and we were engaged to conduct an independent valuation of the IP assets and provide a new ‘IP narrative’ that the Company can use to better explain the business to investors and lenders.

Our Approach

Using our Metisology® approach, we identified three measurable IP asset classes as being critical in underpinning the Company’s competitive advantage. A consumer brand that is gaining widespread exposure, a scalable software platform and related software that enables a B2B business model, and filed patents that, if granted, will further protect the future cash flows of the business.

We analyzed the development, management, and protection of each IP asset class, and used our proprietary IP asset scorecards to benchmark the Company’s position in the market segment and the wider information services industry.

We performed detailed analysis and narrated our findings on the growing cryptocurrency industry, and in particular the M&A and fundraising activity that has recently dominated the market. This allowed us to assess the key drivers of industry growth and the Company’s business strategy for achieving its financial forecasts within a volatile and uncertain market. It will also no doubt be particularly relevant for the Company’s upcoming fundraise.

The Outcome

We delivered an IP valuation which fully narrates the value that the current IP portfolio delivers, however we also provided the Company with key drivers of future value and some milestones in their expected business journey that would likely increase the IP value.

The Company has now engaged us to perform an independent ‘downside IP valuation’ to demonstrate the likely recoverable value of this disruptive IP portfolio, to support their fundraise and provide lenders and investors with some additional comfort to support their lending decisions.

IP Assets Valued: Product Brand, Software, and Patent Applications