A UK-based VC-backed energy technology company that has developed a suite of intelligent energy management and storage products that can be utilized underwater, offshore, and onshore. The Company’s products were developed with the aim of providing innovative, sustainable solutions, committing circa £12 million to R&D, innovation, and product development over the past decade. The Company is in the early stages of product commercialization, and has already forged strategic partnerships with various multinational energy operators to assist with this.
Like many businesses, our client invests heavily in innovation and its IP assets and yet this investment is lost in expenses in the P&L. The client recognized that its extensive IP portfolio was absolutely the key driver for securing its competitive advantage – they have developed proprietary patent-backed technology and software to provide end-to-end energy storage products, which has positioned the Company as a thought-leader in the otherwise fragmented energy management and storage market. Moreover, the Company is recognized by major players in the market as an innovative energy developer that has enabled the formation of critical partnerships, thus providing a competitive advantage over new and potential market entrants. The Client wanted to understand the value of this IP bundle, in order to inform and support planned fundraising activities.
We valued the IP portfolio on a fair value basis. Using our Metisology® approach, we identified a portfolio of IP assets including brands, patents, designs, software, critical partnerships, and key organizational knowledge, that underpin both its main product offerings and the Company’s critical business operations. In addition to patent-backed technology, the Company had developed proprietary software, which was integral to the Company’s product offering. We also performed a deep dive into how the IP portfolio was developed, managed, and protected and used our proprietary scorecard to benchmark the IP portfolio’s position in the market segment and the wider alternatives in the renewable energy industry, to assess the Company’s competitive moat that protects income and forecasts.
We performed an analysis of the alternatives and renewable energy industry and the segments that provided the company’s material revenues, to understand and assess the key drivers of industry growth and the company’s business strategy for achieving its financial forecasts.
We delivered a robust valuation of the Company’s IP assets underpinning the business using internationally accepted valuation methodologies. Our report included an IP narrative that explained the extent and quality of the IP assets in the business, demonstrating their contribution to the Company’s competitive advantage and material revenues. In addition to our Full IP Valuation report, we provided advice to the client on the ways in which they can improve IP value for future growth, which the Client can utilize to support key strategic decisions in relation to its IP Portfolio.
