IPR.VC recently launched a new venture capital fund specializing in growing and under-served area of media content.

1. Creative Content as an Investment:
a new Approach to IPR Financing
Timo Argillander, Creative Future Nordic Summit 1.12.2015
@timoargilllander @iprvc

2. IPRs are the Growth Driver
in Western Economies
As competition in existing industries
has become global and fierce,
intellectual property rights (IPRs) in
media and entertainment provide
new source of growth
Internet is hitting hard the legacy
media companies while providing
major opportunities for new
entrants
2014: Disney and Hearst
invested in Vice Media with
2.5 bn$ valuation
2015: Activision Blizzard
acquired Swedish game
developer King for 5.9 bn$

3. IPR is Highly Scalable Business
Content IPR is an agreement-based right for commercial deployment of
the content (film, games, books etc.)
Content IPRs can be traded and licensed
– Trading: changing ownership
– Licensing: retaining ownership, charging a fee based on use or
revenue
Content IPRs are liquid and fully scalable and in digital channels their
variable costs are near zero
Rovio has created
dozens of millions
worth of new
business by adapting
Angry Birds IPR for
film and merchandise
70-80 % of Spotify’s
revenues are paid for
IPR owners

4. Value Shifts from Tech to Content
“Build the tools” “Create value”“Serve all” “Serve best”“Enable” “Own the best
IPR”

5. IPR.VC’s Mission
1. To enable Finnish content companies to
create international success stories
1. To prove that IPRs make a good investment

6. IPR.VC Instruments
Development Loan Loan & royalty Equity
Product
lifecycle phase
Concept creation Content production and market roll-out
Instrument Loan + option right for
further investments
Loan + royalty right
(MG or other
arrangement)
Equity
Typical size of
investment
25-50 k€ 500 k€ - 1 m€
Estimated # of
investments
20-30 5-10 5-10
Payback/exit Payback when IPR
generates revenue
Payback when IPR
generates revenue
(MG+royalty)
Equity trade sale (or
IPO) within 4-5 years

7. What Makes a Content Project
a Good Investment?
• Quality, attractiveness and originality of the
content
• Potential audience size for the content
• Credible international roll-out plan that targets
high returns, potential for a major break-
through
• Short time-to-market
• Committed team with both creative and
business ambitions

8. From Production Company
to IPR Developer
Production company IPR developer
Work is based on projects (“work-for-
hire”)
Work is based on long-term
developing, scaling and monetizing IP
rights
Customers pay for the project Customers pay for license to use the
content
Focus on business customers Focus also on consumers
Key competence is to manage
production projects and freelance
networks
Key competence is to develop and
monetize IP rights
Revenues are generated mostly on
domestic markets
Revenues are generated mostly on
international markets

9. Contact information
IPR.VC MANAGEMENT
OY
Mannerheimintie 20 B, 6th Fl.
FI-00100 Helsinki
Funding inquiries: info (at)
ipr.vc
Timo Argillander
timo (at) ipr.vc
Tel. +358 400 448079
Tanu-Matti Tuominen tanu-
matti (at) ipr.vc
Tel +358 500 593001
Jarkko Virtanen
jarkko (at) ipr.vc
tel: +358 40 5476945