The Client
Incorporated in 2014 as a developer of intelligent electric vehicles (‘EV’). The Company is based the US however its strategic plan was to establish in key locations across China to capitalize on significant and immediate demand for EV. The Company entered into a joint venture in order to secure a pledged $2 billion funding to facilitate its commercialization strategy. The Company pledged its IP assets to obtain a significant percentage stake in the joint venture. Following arbitration, the funder was found to be in breach of funding obligations, with $1.2 billion still outstanding. The JV agreement was terminated allowing external investment to be raised and the Company required an independent assessment of the IP assets to secure a source of bridge finance and further growth funding.
The Assignment
We were engaged by the Company to provide IP valuation advice in relation to the critical IP assets that were held in the JV, to support a potential IP-backed finance transaction, using these IP assets as security.
Our Approach
Using our Metisology® approach we performed a detailed analysis on the Company’s key IP assets including significant portfolio of patent families and filings, extensive software, a wide-ranging set of organizational knowledge, and an early-stage brand. The Company’s strategy was focused on the booming EV markets in Asia and North America. It had already created an engaging consumer-focused brand protected by a portfolio of trade marks in key commercial territories; almost 150 registered trade marks and another 250 pending. The Company’s innovative technology stack had been developed over five years by a small number of experienced engineers and inventors, numerous key elements were protected by patents. The patent portfolio, including more than 150 granted and 400 patent applications, was supported by extensive organizational knowledge that we found to be a critical contributor to the Company’s operations. We carefully mapped the IP to the existing business model and growth strategy as the Company was pursuing an active R&D roadmap with some patented tech being developed for commercialization, beyond the defined forecast period.
The Outcome
Our Metisology® approach was critical in ensuring we correctly ringfenced the IP that was due to be commercialized in the short term and would therefore be more relevant to a lender as viable collateral. The Company successfully raised funding and progressed discussions with strategic manufacturing partners. The Company announced it would go public through a reverse merger with a SPAC and is expected to raise around $1 billion when it lists on Nasdaq. IP Assets Valued: Brand, Patent-portfolio, Extensive Key Organizational Knowledge, Software