Swiss company M-CAM has launched a product that calculates a company's intellectual property in terms of collateral.
The new product is called Certified Asset Purchase Price (CAPP), and uses a combination of analytic, data mining, and data interrogation tools to derive a firm price on the intellectual property.
Swiss Re New Markets has developed the insurance facility needed as a backstop for the CAPP product.
“Until today, IP assets have been viewed as having no lendable or realisable collateral value and have not been considered as viable loan collateral by banks.
“CAPP means that intellectual property, and other intangible assets, can now be used as bank collateral, unlocking a vital new financing source for business,” said David Martin, founder and chief executive of M-CAM.
“Companies in technology-driven sectors now can use their most valuable assets – their proprietary intellectual property and intangible assets such as patents, copyrights, trademarks and other intangible assets – as collateral to finance their exploding growth,” he added.