The People's Bank of China, together with other seven ministries, released the Master Plan for the Construction of Pilot Financial Reform Zones for Sci-Tech Innovation in Shanghai, Nanjing, Hangzhou, Hefei, and Jiaxing in November 2022. Hefei was approved as one of the pilot zones.

 

Hefei Xingzhengxin Intellectual Property Operation Center Co., Ltd. (“Xingzhengxin”) was founded on May 6, 2023, as a joint venture between Sinofaith IP Group and Hefei Xingtai Capital Management Co., Ltd. and its Hefei High-tech Industry Intellectual Property Operation Fund. It aims to help Hefei turn into an international cradle of scientific and technological (sci-tech) innovation and a magnet for emerging industries, through IP-backed finance services for sci-tech innovation.

 

 

IP-Backed Finance for Sci-Tech Innovation

The Plan for the Construction of Hefei Pilot Financial Reform Zone for Sci-Tech Innovation was released recently. It offers guidance on the "improvement of metrics for innovative enterprise evaluation" by introducing effective measures such as the "assessment of corporate technological strength" and "innovation scores" for fast-growing, high-risk, and asset-light innovative enterprises. Intellectual property (IP) is key to finance for sci-tech innovation and the development of innovative enterprises and industries. In essence, IP-backed finance for sci-tech innovation aims to unlock the value of IP-based "technology assets” in the early stage. Xingzhengxin aims to provide more diversified, more tailored, and better IP operation, IP evaluation, finance for sci-tech innovation, and technology investment banking services to enterprises in Hefei.

 

IP operation

 

● Patent + know-how licensing (exclusive, non-exclusive, and cross-licensing)

● IP transfer

● Transactions of technology assets (early equity investment and M&A between innovative enterprises and R&D entities)

 

IP evaluation

 

● It is of great significance for R&D-intensive enterprises to effectively protect and increase the value of their intangible assets. The evaluation system offers credible and reasonable evaluations of patents and other intangible assets such as trademarks and copyrights.

 

Finance for sci-tech innovation

 

● IP pledge financing

● IP securitization

● IP-based finance leasing

 

Technology investment banking

 

● Core assets of innovative enterprises — evaluation and construction of technology assets

● Startup-to-IPO incubation, support for and acceleration of innovative enterprises

● Pre-investment appraisal, due diligence, and post-investment management by institutional investors

 

In 2023, Xingzhengxin will focus its efforts on laying the groundwork by holding a number of influential events that encourage innovative practices, with the support of the local Intellectual Property Bureau and Bureau of Science and Technology. This includes forums on financing for innovative and high-tech companies, IP training for IPOs on the Sci-Tech Innovation Board, and evaluations of sci-tech innovation attributes, in collaboration with the National Institution for Finance & Development, Investment Banking Department of Agricultural Bank of China, International Technology Transfer Network (ITTN), and University of Science and Technology of China.