1. CRUI - WIPO Training Programme on intellectual property and management of innovation in small and medium-sized enterprises, Universities, Spin off and Research Centers Use of IP Assets as a Tool for Accessing Financial Tools META Group - Ing. Luigi Amati 28 March 2006

2. Understanding finance for Innovation Investor needs IP Assets: a strategic leverage Some ideas

3. R&D: Risks and Financial needs Basic ResearchPublic SupportGrants, incentives, scholarships Discovery Invention Applied researchPublic and private partnerships Equity (BA, seed finance), Convertible loans, guarantee schemes Patenting and licensing Prototyping IndustrializationPrivate InterventionVC, IPO Risk Level

4. R&D: Risks and Financial needs

5. Innovative Companies: do not have out a sound track record need years before generating a positive cash flow (no self-financing) their Business activity not understandable could not provide guarantees require a small amount of money Traditional Financial tools Vs Innovative companies INNOVATIVE COMPANIES ARE NOT APPEALING FOR BANKS !

6. Time Capital ($) Needs START-UP FINANCING SEED FINANCING EARLY STAGE FINANCING EXPANSION FINANCING Company Growth FIRST STAGE FINANCING PRE-SEED FINANCING Finance for Innovation, BA VENTURE CAPITAL The financial gap EQUTY GAP

7. Knowledge based companies needs risk prone money 3 F s are not enough! (Fools, Family, Friends)

8. New Financial tools Vs Innovative companies Seed funds BAs VCs

9. …But what are investors looking for? Balanced & committed Management Team High growth potentials Sustainable Business Model Suitable strategies: with deliverable goals A clear way out strategy …

10. …But what are investors looking for? … defendable products!

11. IP as added value, Why? Legally protected Able to create incomes Competitive Advantages Can be evaluated

12. IP & Investor needs Investors have the following concerns: freedom to operate PA report possibility for an international coverage clear ownership status facilitating a well established exploitation strategy barriers to entry

13. Case Studies: the IP diligence in the assessment process

14. Case A: Patent owned by the company (and not the inventor) World patent Protection of both Product and Process Various fields of applications Project independent by original research team (testing phase) But … Agreement with inventor? Research project consortium agreement? Good patent, unclear situation

15. Case B: 2 Patents owned by the company Still PCT process, Patenting process supported by Patent Attorney from the beginning Various fields of applications But … Similar technologies covered by patents on the market EPO expert written opinion, 1 positive and 1 with claims Project dependent by original research team clear situation, good patents?

16. Some ideas: IPR is a strategic leverage, at least to start the discussion Team, market and business model are also essential Innovation finance vs ipr market is just starting in Italy, therefore … Watch out “self made” IPR and look for professional fund managers

17. Ing. Luigi Amati Meta Group www-meta-group.com Grazie!