Enterprise Directorate General European Commission Intellectual property and access to finance for high growth companies 14 September 2007 Patrick KLEIN European Commission, Directorate-General for Enterprise and Industry

Enterprise Directorate General European Commission Why is Intellectual property important for high growth companies ? Increasing share of market value from these companies derives from intellectual assets. Technology: driving force of economic growth but chronically underfinanced. IP : only assets to value for investors but difficult.

Enterprise Directorate General European Commission Why IP valuation is important ? Valuation of I.P to be monetized but many ways to do so; The way IP is valued is influenced by the purpose of the valuation (financial reporting, commercial transactions, use as collateral); Valuating IP: consequences for investors and companies.

Enterprise Directorate General European Commission How to exploit IP assets value (I) ? IP as a collateral for bank loans; = not so developed… = possible future ? IP for Business Angels and Venture Capitalists; = investors better prepared… = but not the most important issue.

Enterprise Directorate General European Commission How to exploit IP assets value (II) ? Securitisation: another tool to raise finance for high growth companies.

Enterprise Directorate General European Commission Key recommendations for EU and Member States Public intervention to support IP- based companies at an early stage when there may be market failure; Development of guidelines and models for coordination between IP and financial sectors (IP should not only be used to prevent other entering the market !)

Enterprise Directorate General European Commission Key recommendations for EU and Member States Development of best practices cases, awareness policy, investment readiness programs for policy makers and SMEs; Support to investment funds strategies leveraging IP assets.

Enterprise Directorate General European Commission What will the Commission do ? Better communication: to develop existing tools like Europe Innova, Proton, EIC/IRC networks… Better policies: to enhance the regulatory environment and ensure an effective IPR framework; Better use of public funds: to improve SME access to finance (eg: CIP).

Enterprise Directorate General European Commission Contacts Web site: SME financing: entrepreneurship/financing/index_en.htm