GovGrant R&D specialists logo – A Source Advisors company

For the investment community

The investment sweet spot

The fundamental to investment growth, risk management and returns is the ability to know when to buy businesses, how to steer them through growth or performance improvement, and knowing when, to sell them and to whom. To gain an edge, investors have to plan and capture the full upside from incentives on R&D, Intellectual Property and patents.


GovGrant brings together private investors, innovative UK companies and our sectoral and technical experts to maximise capital efficiency. Thus we create a partnership with investors across their portfolio and pipeline companies.

Since 2000 we have built a track record of working with thousands of UK businesses to maximise the value of their innovations. These range from seed stage start-ups to FTSE 250 companies, and are across sectors. We now are using this specialism to offer a unique lens for your investment decisions and portfolios.

value

Reliable cashflow and capital efficiency are key to long-term success. Working with GovGrant, innovative companies achieve superior post-tax profit and free cashflow metrics from their research and intellectual property.

risk

With our experience and specialism, GovGrant has a track record of superior quality and compliance. Investors use GovGrant to benchmark the quality and commerciality of R&D and intellectual property activities for their portfolio and pipeline. All of this reduces portfolio risk.

insight

As a venture-funded company ourselves, GovGrant brings an entrepreneurial and commercial perspective to innovation, R&D and IP. We have a track record of using our technical and commercial insights to get higher cashflow and valuation outcomes than comparable market benchmarks.

For incubatorsGovGrant brings value to their community and accelerates start-up development.

For start-up investorsGovGrant brings extended runway on their investment.

For PE investorsGovGrant brings higher returns and greater flexibility on investment horizon.

Identifying and valuing investment opportunities

Opportunities arise when a business is undervalued. Especially when the commercial potential of research and intellectual property is not obvious.

GovGrant brings a different perspective to due diligence. Through the lens of IP, we identify value, risk mitigants and opportunity that is not considered by others. We leverage our practical knowledge of working with thousands of businesses across sectors to give insight that helps in investment decisions.

Improving performance

We are no longer an economy driven by physical assets, and the greatest value for a company is its Intellectual Property. For companies who recognise this , the value of a patent goes beyond protection and a multiple. This is so because patents boost cashflow through a reduced tax rate from the UK Patent Box scheme. So our clients and investor partners consider patents not just for protection but also for prosperity.

Did you know that less than 800 SMEs in the UK benefit from Patent Box and only take 5% of the benefit that is currently awarded under this tax relief scheme. How many of your portfolio companies may be missing on this upside?

To access this value, GovGrant helps investors find that hidden gem, often buried deep in company R&D, that provides high coverage for the company’s EBITDA, and turns IP into a valuable, commercial asset. We call this IP Harvest.


Exit strategies and valuing a business to sell

When selling or exiting from an investment, it is important that sellers recognise the value held by the business.

GovGrant provides an accurate and evidenced value of IP. We work with investors and advisors, to help understand the company and the market through the lens of IP and inform which exit strategy will drive the right outcome,e.g. suitable buyers, appropriate value.

GovGrant – adding value to your investments

Most businesses that have received private investment will be aware of, and likely getting some benefit from R&D tax credits. It is a government backed incentive to encourage innovation in every corner of the UK, and is a great indicator for investors that the company understands its own landscape.

Over time though, we have seen complacency slip in. Companies may be thinking that this is “just a tax thing”, but it is not – it is all about innovation, science and technology. To create a compliant, best value claim, it needs to be in the hands of experts. When done correctly, the value underpins higher, more reliable cashflows which reduce the risk for investors. When done incorrectly, the investors may be left with a problem they did not know existed.

Why GovGrant – bringing insight to your investments

We work as partners with the investment community to improve outcomes on value, risk and insight metrics. This includes:

  • Incubators and accelerators
  • Angel investors
  • Family offices
  • Venture capital companies
  • Corporate VCs
  • Private equity firms
  • Specialist lenders, brokers and advisors

GovGrant works with the different players in the investment community under different partnership arrangements, always reflecting the highest standards of confidentiality and business ethics.

R&D tax relief hits the headlines for the wrong reasons

You may have seen that the R&D tax relief schemes have been hitting the headlines again this week. There has also been a flurry of activity and information from HMRC > Read more

Advanced notification requirement – clarification from HMRC

You will have heard that soon, in some circumstances, HMRC will need advanced notice of your intention to claim R&D tax relief. We’ve been receiving a lot of queries from > Read more

What do tax leaders need to deliver R&D tax incentives to the most innovative companies in the UK?

The R&D tax relief advisory market is responding to ever-changing legislation, a more robust approach from HMRC, and uncertainties in future policy direction. Last week we hosted a roundtable discussion > Read more