High growth businesses, despite experiencing rapid expansion in terms of revenue, profits, and market capitalization, often possess few tangible assets. However, they frequently own intangible assets, such as goodwill, brands, digital assets, intellectual property (IP), and know-how.
To continue to grow, these high growth businesses must consider ways to finance their expansion. Unlike tangible assets, it is difficult to value these intangible assets because they have no physical shape or form. The question is, how do these ‘tangible asset poor’ businesses raise funding via traditional methods such as bank loans?
NatWest Group already provides funding opportunities for high growth businesses and has now extended their offering to IP-rich companies such as those described above. The offer was developed in partnership with Inngot IP, who are a specialist IP valuation company.
The new offering from NatWest Group distinguishes them from many other lenders because they are taking into account the IP that businesses own and using it as security for IP backed loans.
Of course, all forms of intellectual property are considered for the offer: patents, trademarks, designs, and copyright. Therefore, in addition to the study conducted by the European Patent Office reporting that startups are up to 10.2 times more likely to receive investment, it is clear that IP is a good investment for SMEs and high growth businesses hoping to generate funding and investment. Businesses should consider their IP portfolio if they wish to increase their chances of investment and to generate assets that can be used as collateral for traditional loans.
Our Patent and Trademark attorneys at WP Thompson are experts in advising in all matters relating to IP. We regularly advise businesses and individuals in the procurement of IP and can direct you to potential funding opportunities and schemes. If you wish to discuss your business to help improve your IP portfolio, or to assess your brands and technology, please reach out to one of our attorneys. We offer a free 30-minute consultation to any business or individual wishing to discuss their options.