MyRepublic gets $52m as Singapore’s billion-dollar IP fund makes first investment

Singapore. Photo credit: David Russo.

Makara Innovation Fund (MIF) has invested US$51.8 million in telecom network MyRepublic, marking the fund’s first publicly announced investment.

The funding will “supercharge” the development of MyRepublic’s proprietary cloud platform, as well as support its “aggressive” plan to expand its regional footprint and deliver more services, said CEO Malcolm Rodrigues in a statement.

A partnership between the Intellectual Property Office of Singapore (IPOS) and private equity firm Makara Capital, MIF was launched in April with a S$1 billion raise target.

It aims to invest in “high-growth companies with strong IP [intellectual property] and proven business models.” These include later-stage startups and established businesses from Singapore and elsewhere that demonstrate a “strong pan-Asian growth trajectory.”

In the statement, MIF said that in addition to its positive assessment of MyRepublic’s growth fundamentals and business model, its investment decision was supported by an evaluation of the startup’s IP portfolio. This was carried out by IP ValueLab, the enterprise engagement and IP valuation arm of IPOS.

Rodrigues said in July that MyRepublic aims to IPO next year, and would seek to raise around US$73 million funding in the interim. The injection from MIF makes up a big chunk of that, though it’s unclear whether the startup’s IPO objective will change in light of today’s announcement.

MyRepublic CEO Malcolm Rodrigues. Photo credit: MyRepublic.

Rodrigues revealed MyRepublic’s intention to go public after its failed bid to secure Singapore’s fourth telco license in 2016.

After Australia’s TPG won the auction, MyRepublic was reportedly interested in acquiring existing license holder M1.

That deal never materialized, with Rodrigues dismissing the rumors and M1’s owners eventually taking the firm off the market.

What are IP commercialization and monetization?

MIF’s formation came hot on the heels of the Singaporean government’s Committee on the Future Economy report and its 2017 budget, which identified the commercialization and monetization of IP as key to the country’s development.

IP includes trademarks, patents, and copyright, which give their holders varying exclusive legal rights to brands, inventions, and creative works, respectively.

IP monetization refers to ways in which IP rights can be leveraged to generate new sources of revenue – for example, by licensing or selling them to third parties, or using them as collateral to secure financing. They can also be commercialized to create new products and services or to build new businesses around them.

“MyRepublic clearly appreciates the importance of IP, having built a strong business model around a robust suite of intangible assets,” IP ValueLab executive director Shau En Tan said in today’s statement. “[It has] strong brand equity, technical know-how, substantial data assets, and scalable digital platforms.”

Rodrigues added that the startup is working closely with MIF to “implement recommended IP monetization strategies in view of further value creation for our investors.”

Converted from Singapore dollar. Rate: US$1 = S$1.35.

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