GenIP is set to list on London’s AIM on 2nd October, providing UK investors with an opportunity to gain exposure to the rapidly growing Generative AI phenomenon.
We outline five reasons why investors interested in technology and Generative AI should monitor the company closely as trade gets underway on the first day of dealings.
1. GenIP’s encouraging order flow and market traction
GenIP has already won new orders from research institutions keen to secure the company’s services. The launch of GenIP’s new Generative AI services in September has already generated over 40 orders for AI analytical assessments and three executive search assignments. GenIP is far from a concept and has hit the ground running.
As we explore below, GenIP operates in a sector rich with research organisations striving to commercialise the products of their innovation centres. It appears that, at least in these early stages, many institutions see GenIP’s services as a viable tool for assisting them in this process.
2. Strong management team
GenIP is helmed by a world-class leadership team. The board includes Lord David Willetts, President of the Resolution Foundation and Chair of the UK Space Agency, and Dr David Gann, Chair of UK Industrial Fusion Solutions and non-executive director of VenCap International plc.
CEO Melissa Cruz has extensive experience providing solutions to exactly the global research institutions GenIP are targeting their AI-enhanced analytics services at.
Technology specialist Selwyn Lloyd supports the board and CEO and has been instrumental in developing the Generative AI LLM at the heart of GenIP’s offering.
I’m short; GenIP looks to have the ideal mix of experienced oversight, technological capabilities and industry connections to secure success.
3. Substantial market opportunity
GenIP is focusing on the opportunity in the Generative AI analytics market, which is set to grow exponentially in the coming years. A study has projected Generative AI in analytics will grow at a CAGR of 27.41% between 2024 and 2032 taking the market to a potential size of over $10bn.
One broader Generative AI market forecast predicts the industry could balloon to $1.3 trillion by 2032.
4. First-class client base
GenIP has plans to forge relationships in sectors rich in innovation. Universities and research institutions are hotbeds for technological discoveries. GenIP’s opportunity resides in helping to fill the gap between generating innovations and generating revenue from them. Research institutions’ desire to commercialise innovations presents a market of potentially thousands of clients for GenIP’s analytical services.
From looking at the websites of GenIP’s respective websites and the details released to the market so far, GenIP is already working with several institutions, including Brazil’s National Nuclear Energy Commission CNEN, Chile’s Fundación Copec UC, and the University of Huddersfield.
Non-Exec Director David Gann OBE’s existing positions on the board of a leading fund managers will support building a footprint in that sector.
5. GenIP’s attractive IPO structure
GenIP is the latest IPO from the Tekcapital technology incubator, and it has a track record of successful IPOs. The most recent, MircoSalt, saw shares triple within six months before easing back. Although GenIP and MicroSalt operate in entirely different industries, the structure of the IPOs is very similar.
Tekcapital will retain a large proportion of outstanding shares after IPO and is ’locked in’. Other major shareholders are also locked in for a 12-month period. This prevents them from selling any shares for 12 months, creating a favourable environment for GenIP, avoiding the selling pressure some other companies face at IPO from existing shareholders. This dynamic helped SALT shares higher and is likely to support GenIP as trading begins in London.