- Market leading IP-backed loan will enable high growth businesses to access funding against value of their Intellectual Property when conventional lending is not suitable
- High-growth technology businesses in England have already secured £22m IP-backed loans from the bank in conjunction with IP valuation experts Inngot
- Announcement welcomed by the Deputy First Minister and Secretary of State for Scotland
- Move comes as policymakers and global businesses convene at Scottish Global Investment Summit at bank’s Gogarburn headquarters
It follows a change in Scottish law earlier this year whereby the Moveable Transactions (Scotland) Act 2023 took effect, giving lenders the ability to accept effective security over IP rights.
Next year, loans ranging from £250,000 up to £10million, will improve the funding pipeline for high-growth Scottish businesses who, because of their lack of fixed assets, often find it difficult to secure funding to drive their growth.
RBS’ parent NatWest Group launched IP-backed loans in 2024 under its NatWest brand and has already agreed to lend high growth businesses in England and Wales in excess of £22million total funding. These include companies specialising in cloud-based software services, smart system technology, state of the art engineering and AI gaming platforms.
Bristol-based prosthetics firm Open Bionics, which harnesses cutting-edge 3D printing and scanning technology to design and build affordable, custom-built bionic arms, secured a £600,000 IP-backed loan to open six new clinics in the US, helping more patients to access its life-changing Hero Arm.
Successful Liverpool gaming company Ripstone, known for producing a game based on popular Netflix programme ‘The Queen’s Gambit’, also negotiated a £600,000 finance package using its IP as collateral to support the development of a range of new games projects.
The new IP-backed loan offering has great potential for providing a boost to the interactive entertainment sector in Dundee, which is renowned for its thriving gaming industry, and many other health tech, life sciences, and robotics businesses across Scotland.
NatWest Group’s new Business Growth and Innovation Hotspots index has identified Edinburgh and Glasgow in the top 10 leading areas, and Aberdeen in the top 25, for mid-market activity in the UK driven mainly by tech and innovation companies.
Scotland’s climate tech sector employs 30,000 people and generates more than £15bn each year, with Edinburgh leading the way for this sector whilst Glasgow is noted for a high concentration of fintech businesses. Aberdeen is also noted as a pioneer for the transition to renewable energy, carbon capture and wider climate technologies.
The news was announced as RBS prepares to host the Scottish Global Investment Summit which aims to connect international investors with future investment opportunities, and recognises the country’s historical achievements.
Global leaders and experts will attend the annual event taking place at the bank’s Edinburgh Gogarburn headquarters on 6/7 October.
Judith Cruickshank, NatWest Group’s Scotland Board Chair, said “This new loan demonstrates how we are supporting innovation and businesses who are seeking investment home and abroad, whatever stage they are at in their lifecycle. As more companies invest in AI and digital capabilities, we expect to see an increased demand for technology driven services which may not have the same tangible assets as more traditional businesses. Our IP-backed loan offering is a key example of how NatWest is supporting Scotland’s digital economy, helping IP-rich firms to accelerate investment and facilitate growth without diluting ownership.”
The NatWest Group IP-backed loan offering has been specifically designed in partnership with IP valuation experts Inngot to support high-growth IP-rich but tangible asset light businesses by leveraging their IP as collateral for lending.
Inngot’s IP identification and valuation tools facilitate the ongoing delivery of the loan proposition, to support high-growth businesses by leveraging their intellectual property as collateral.
This innovative approach to lending provides companies with easier access to finance, allowing them to invest in R&D and scale their operations. IP loans are part of NatWest’s commitment to fuel high-growth businesses, providing them with the resources needed to achieve their growth ambitions.
Martin Brassell, CEO of Inngot, added: “IP has been called the ‘currency of the knowledge economy’ – it’s that important. However, for a currency, it’s not been very liquid in the past. This initiative improves liquidity by enabling businesses to borrow cost-effectively against the value of the intangible assets they own, and fund their creation of new ones to boost growth and competitiveness. We’re delighted that recent legal changes now make it possible for Scottish firms to benefit.”
Deputy First Minister Kate Forbes said: “Scotland has an incredibly strong track record of invention and innovation and it must be a shared endeavour to support our business founders start and scale-up.
“Access to capital is of course fundamental to businesses growth and the Scottish Government brought forward new legislation in 2023 to enable businesses to use their IP to raise finance in the same way as they use physical assets.
“It is welcome and exciting to see the Royal Bank of Scotland’s plans for an IP-backed loan and I look forward to it providing invaluable support to help kick-start the country’s greatest ideas and business innovation.”
Scottish Secretary Douglas Alexander commented: "This is welcome news from RBS that will widen the market that helps innovative companies unlock Scotland's extraordinary potential in technology and life sciences. Enabling Scottish businesses to leverage their intellectual property as collateral can remove the traditional barriers to finance which have held back some of our most innovative companies. This new funding source could help these IP-rich businesses scale up and compete on the global stage. It's particularly exciting to see this launching alongside the Scottish Global Investment Summit, showing international investors that Scotland is serious about supporting the businesses of the future."
RBS is expected to start offering the IP-backed loans in Scotland during 2026. To register your interest or find out more please visit https://inngot.com/rbs
About the Royal Bank of Scotland
The Royal Bank of Scotland serves customers in Scotland, supporting them with their personal, private, and business banking needs. The Royal Bank of Scotland helps customers from opening student accounts, to buying their first home, setting up a business, and saving for retirement.
Alongside a wide range of banking services, the Royal Bank of Scotland, as part of the NatWest Group, offers businesses specialist sector knowledge in areas such as manufacturing and technology, as well as access to specialist entrepreneurial support.
About Inngot
Inngot has been providing IP valuation tools and services since 2010, with a particular focus on helping companies establish the value of their IP and intangible assets to support equity and debt fundraising. Its online platform, developed with SMEs in mind, offers a consistent, cost-effective and scalable way to identify and value these otherwise ‘hidden’ company-owned intangibles. This toolkit, including a custom-built tool to provide banks with an accurate base-line figure for the recovery value of IP taken as collateral, is at the heart of the NatWest High Growth IP-backed loan, which has now been used by 15 companies to raise funds by leveraging their IP value. Inngot’s toolkit has also been used by other banks, and by hundreds of early-stage and scale up companies for a range of purposes, but mainly to support fund-raising. Inngot also provides customised IP strategy services for larger companies, and has advised NGOs, government agencies and innovation networks on IP identification and monetisation policy.
