First IP-backed loan from NatWest goes to Oxfordshire’s Sci-Net

NatWest has extended its first mass market intellectual property (IP)-backed loan to Sci-Net, a software business based just outside Oxford.

Founded in 1998, Sci-Net has already established partnerships with multiple tech giants and businesses across the retail, ecommerce-retail and distribution industries.

The £700,000 loan will help the company, a Microsoft Tier 1 Gold partner, grow its portfolio of customers, which currently includes national retailer Tapi Carpets and jewellery retailers Missoma and Jessica McCormack, as well as national distributors.

Sci-Net also aims to boost development of its ERP>Retail and its ERP>Trade software, which helps customers run their business operations.

The loan is expected to create six new job opportunities in the local area.

Neil Bellamy, Head of Technology, Media and Telecoms at NatWest Group, said: “It’s a pleasure to have supported Sci-Net with the bank’s first IP-backed loan.

“As a bank, we work with some of the country’s most innovative startups, and our aim is always to enable them to leverage the things that really drive their success.

“With this loan, we’ve shown the potential that unlocking value from IP and intangible assets could have for UK economy, by helping firms to scale, create high value jobs and boost UK productivity.

“I’m excited to see what Sci-Net does next.”

Duncan Fergusson, managing director of Sci-Net, said: “One of our biggest goals is improving efficiency, automation and customer service among businesses we work with.

“Our software, which we’ve created and enhanced, has helped us to do just that.

“Accepting this loan from NatWest is a fantastic opportunity to facilitate roadmapping and growing the software further so we’re able to work with more businesses across various sectors.

“Not only has NatWest been great with providing financial aid, but it’s also shared great business support and recommendations.

“Our relationship manager has been very supportive and has continuously gone the extra mile – we can’t thank them enough for their help.”

That relationship manager is David Buckmaster at NatWest.

He added: “Duncan and the whole Sci-Net team are some of the most intelligent and ambitious people I’ve had the pleasure of mentoring.

“Their hunger for success never ceases to amaze me and I’m proud to have supported them on their growth journey.”

Developed with specialist IP valuers Inngot, the High Growth IP Loans start from £250,000 against up to 50 per cent of the value of a firm’s IP – software, patents, copyrights, trademarks and registered designs – as determined by Inngot.

Martin Brassell, chief executive of Inngot, said: “This marks the first time we have seen a UK bank willing to attribute collateral value directly to IP assets, at repayment levels that are highly affordable.

“The £250,000 starting point makes IP-based funding accessible to growth companies at real scale.

“It rewards UK SMEs for investing in IP, and I believe it will help more companies to realise the importance and value of a strong IP strategy.

“I can’t think of a better way to encourage SMEs to take IP more seriously than to show them that they can borrow against its value.”