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Alpha: Simon Thompson's differentiated intellectual property investment

This company has a business model that de-risks its exciting portfolio of early stage innovators
Alpha: Simon Thompson's differentiated intellectual property investment

Unquoted technology companies have taken a hit this year as investors have become more cautious. However, one company has created a business model where, rather than investing cash in start-ups, it provides services in exchange for 'free equity' stakes. Already this company has built up a portfolio of exciting businesses and its shares are seriously undervalued. 

The investment company in this report specialises in taking stakes in spin-out companies from universities. In return, it provides academics with expertise in scaling up and commercialising technologies into potentially valuable businesses.  This low-cost and capital efficient business model sets the company apart from cash hungry peers.

Key to the company's success is validating the intellectual property and selecting winners from a rich crop of opportunities. One business in particular, a leader in artificial intelligence-driven drug discovery, should by itself be worth more than the holding company's own £28m market capitalisation.

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