IP (intellectual property) refers to the ownership of intellectual creations. Consider patents, software, music, models, databases. It is no simple task to obtain financing for high-IP SME businesses. They offer too little security for banks, or are still dealing with negative or volatile cash flows; or their existing history is too limited. High-IP SME businesses are mainly dependent on equity and, possibly at some point, on mezzanine financing. Attracting share capital involves issues of valuation. ‘What is the real value of the IP or its shares?’

​‘What percentage of the share capital are investors offered in exchange for their contributed capital?’