Alternative financing for IP rich businesses

A $100 million loan facility for Massachusetts-based agritech company Indigo, secured against a portfolio of 90 granted patents, 250 pending applications and more than 50 trademarks!

Aon announces the launch of its Intellectual Property (IP) Capital Market Solution along with the close of a significant IP-backed lending transaction worth over $100 million, believed to be the largest such transaction ever consummated.

"The way the deal works,” Aon's head of IP broking Nick Chmielewski says “is that a lender makes a loan to the borrower and the insurance markets then wrap that loan against the risk of default collateralised by the intellectual property.” Aon’s role is essentially to broker the deal and use its in-house tech to to do the valuation. "This is the first time you have had the financial industry and the insurance industry come together to create this much capital backed solely by IP,” states Aon IP head Lewis Lee. 

https://www.commercialriskonline.com/aon-launches-insurance-backed-loan-facility-based-on-ip-value-and-closes-100m-deal/

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