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Intellectual Property Backed Finance

By admin, August 13, 2019

What do you when you’re a fledging tech business that is looking to raise debt finance?

You’re not going to have business bank statements going back x number of months, you’re not going to have a set of company accounts that’s going to get lenders hot under the collar and your business it most likely not profitable yet. Lenders want all this information for their due diligence as they’re going to want to know you’ll be able to service the debt, that it’s affordable for you, and establish how much of a risk you are to them as they’re going to want their money back at the end of the day! The next thing that’ll be considered is what they can secure the debt against…what assets do you have that you can leverage to raise the money?

Traditionally asset finance would be ‘something you can hang your hat on’ so hard assets such as machinery, equipment or property. As a tech business your hard assets will most likely consist of a bunch of laptops, which with all due respect, isn’t going to be the best hat-stand. So best stop coding and go get proper job then, innit? 😊 Jokes aside, let’s talk about the asset that could be worth more than you imagine, and could help get your business to the next stage of its journey.

Although you may not be able to hang your hat on this asset, the intangible asset that you’ll be able to leverage is your intellectual property. And in a world which is so dependent on technology to survive, where weird and wonderful concepts such as machine learning and artificial intelligence are no longer ideas from science fiction novels, intellectual property is an increasingly valuable commodity that a small number of lenders are switched on to….and an even smaller amount of commercial finance brokers are able to accommodate.

Trailblazers that they are, the Pomegranate Commercial Finance Super Heroes are always up for a challenge and when an extremely exciting tech company came along looking to raise finance, we put our capes and were ready to go. The ‘extremely exciting tech company’ can not be named at the moment (so shall be referred to as EETC), but they’ve got a presence in New York, Singapore and London, and are about to seriously disrupt the artificial intelligence world. So why would such an ambitious international company, which could have approached commercial finance brokers anywhere in the world, pick Pomegranate? According to the founders of the business and the board of directors, it was because they knew we would think outside the box, they knew we had an incredible network of lenders, and that we don’t just do traditional lends, and they knew how hard is was to find brokers that would be able to navigate the lending world the way we can. 

After thorough analysis of business plans, pitch decks, projections, and proof of concepts Pomegranate were thrilled to secure a lend of £Can’tTellYouYet for the EETC and are working on a further £Can’tTellYouThisYetEither! We’re honoured, delighted, and a little big giddy about this opportunity and are always interested in weird and wonderful ways in which we can help businesses realise their goals…so feel free to get in touch with the Pomegranate Super Heroes if you’d like to arrange a cuppa and talk about how we can help YOU! 😊

Saadia (Chief Trouble Maker)