An innovative technology start-up, specializing in the development of a B2B Fintech solution that streamlines access to the end-customer’s financial data. The Company is pre-revenue at the date of valuation; however, it has secured significant funding and invested millions in R&D and the development of its software.
The client instructed Metis Partners to provide an IP valuation of its software, which would inform internal decision-making regarding an Enterprise Management Incentives (EMI) application.
The Company’s software was not fully developed and not an MVP as at the date of valuation; it therefore had not generated any revenue, although the business had generated some services revenue. We therefore determined that a cost approach is the most appropriate to value the Company’s IP assets.
Using our Metisology® approach we performed analysis on the ways in which the Company’s software was developed, managed and protected, and used our proprietary scorecard to benchmark the software’s position in the market segment in which it would compete and the wider fintech industry. Our cost-based approach also involved conducting risk analysis, whereby we assessed numerous market benchmarks for typical market participants within the Fintech sector.
We provided a reliable and robust valuation on the Company’s software, which the Company used to inform its internal decision-making regarding the EMI.
