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Aon finalises $25m Intellectual Property finance deal with CHASM

8th April 2022 - Author: Jack Willard

Insurance and reinsurance broker Aon has finalised a $25 million intellectual property-based funding agreement with Massachusetts-based advanced materials company – CHASM Advanced Materials, Inc.

The deal involved Aon’s Intellectual Property (IP) Solutions team combining its proprietary IP valuation tools and a collateral protection insurance policy, to create an IP-collateralised debt structure that allowed CHASM to raise additional funds.

Recently Aon was added to Fast Company’s Most Innovative Companies list for its ground-breaking IP solutions.

IP and intangible assets now represent 90% of the value of Fortune 500 companies, however IP value is not widely understood in capital markets.

Because of this, Aon is now working with companies like CHASM to help them seek access to minimally dilutive growth capital, by valuing intangible assets and structuring capital solutions that leverage such value.

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In a press release, it saids that CHASM Advanced Materials is the inventor and manufacturer of nanotube hybrids – a new class of advanced material that is used by global manufacturers of commercial and industrial products to “dramatically improve” device technology, transportation, natural resources, infrastructure and healthcare.

CHASM CEO and co-founder, David Arthur, commented: “This injection of growth capital for CHASM comes at a critical time in our company history.

“With these funds, we will execute the further expansion of our printed electronics, advanced carbons and advanced membranes businesses. We are delighted to work with Aon as we enter this next phase of our company’s trajectory.”

The press release explains that AgeNT™ are being integrated into headlights, windows and grille areas of transportation vehicles to uniformly, and quickly heat up these types of surfaces for defogging and de-icing.

Furthermore, transparent heaters are very important for advanced driver assistance systems (ADAS) to work properly during inclement weather.

In addition, CHASM-H20™ membranes are being developed to make reverse osmosis (RO) systems for water purification and desalination dramatically more efficient and more affordable for people, industries and agriculture.

CEO of Aon’s Intellectual Property Solutions, Lewis Lee, commented: “Intellectual property is a bedrock of our economy. Working with IP-rich companies, such as CHASM, to leverage their IP to access growth capital is truly defining IP as an important and emerging asset class.

“The ability to access capital based on the true value of an organization’s IP portfolio can open a vast number of doors for companies of all stages and industries.”

Senior managing director, IP Lending at Aon, Randy Sidhu, added: “Aon is excited to collaborate with CHASM and their talented management team as they expand the delivery of their IP-driven product sets to the market.”

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