From pensions to IP - the importance of ideas

Adam Tavener, Clifton Asset Management plc

Innovation and that Eureka moment

Who am I?

Clifton Asset Management Second largest provider of alternative

business funding in UK

1. Funding Circle £200m2. Clifton £166m3. Market Invoice £100m

Why am I here?

Pensions ==

Disruption - transformation

2004 - £100 billion

Use your own money togrow your ideas andbusiness

It all starts with an idea!

Intellectual Property – an asset class that can be held within pension

• Not just technology

• Ideas, databases, processes

• Most businesses have it

• Most don’t realise they have!

What is IP?

Banks don’t understand

84% of 500 SMEs valued their IP at zero

Who has got it?

“Intellectual property is too important an asset to be undervalued by banks, who are the main source of finance.”

Vince Cable

Undiscovered IP

Banking on IP?“The increasing use of IP and intangibles in the pensions area is a particularly interesting development.”

“One company which has made considerable use of pension-led funding to finance businesses is Clifton Asset Management.”

“Asset-based and alternative financing methods should be prioritised for IP-backed finance interventions.”

So how do we do it?

CompanyCombined Pension monies

£ NEED

Transferred

Sets Up

Scheme Bank

Account

SSAS or SIPP Pension Scheme

I PValue

£

Sold to Scheme

Lease payments

made

£ Released

£

Technology tool

QuickIPGet started now

4 easy steps to a free valuation

Who are our clients?

• DMACK Tyres set up by Dick Cormack 2007

• Matched funding - £75,000 use of pension and SIPP, £75,000 from bank

• £10m turnover

• Web solutions company founded 1995 by Nigel Roberts

• Lack of tangible assets meant banksnot interested in lending

• Used pension-led funding to access finance - since accessed two further times

• Recently used pension-led funding to secure £60,000 matched funding from Welsh Government’s Digital Development Fund

Imaginet

• Working with IPOffice and Government

• Business Bank

• Invited to Financial Innovators Summit at No. 10

Secrets of success: Social importance, Stakeholders

Built integrated way of delivering our product seamlessly across our range of brands

Secrets of success: Customer journey

Customer Journey

• Press coverage, battle for awareness

• Business Development, getting partners

Secrets of success: Awareness

Secrets of success: Partnerships

Alternative funding

• Alternative financing approaches, such as crowd sourcing, pension-led funding and peer-to-peer lending, have matched the ingenuity of SME owners with innovative finance methods, allowing them to raise vital funding to support growth

•But greater signposting needed

Eureka!• We have created a new

relationship with an old product

• Bringing pensions out of the darkness and making them useful at a time when people need them

• Our Eureka moment has seen us add value to what seemed a valueless asset class – Intangible Assets

“SMEs are the lifeblood of the UK economy. Their ability to grow is a key determinant of the nation’s future economic health”Banking on IP? Report 2013

Fintech and the future