15 September 2009
Launch of investment fund creates further opportunities to spin-out
A new venture fund has been created to help finance spin-out companies emerging from the University of Dundee.
The University of Dundee Venture Fund LP has been launched in conjunction with Frontier IP, a company specialising in the commercialisation of university intellectual property.
First closing is now complete, with Frontier IP committing £500,000 to the Fund, and the University investing a further £250,000. Partnership status has been secured with Scottish Enterprise’s Scottish Co-investment Fund, meaning that an investment made by the Dundee Fund can, subject to eligibility criteria, be matched pound-for-pound.
This makes a total of up to £1.5million potentially available to spinout companies from University of Dundee, and the fund will remain open to new investors for a further two years.
James Houston, Director of Research and Innovation Services at the University, said that investment in innovative projects was essential during challenging economic times and that the Fund will help to create and grow future emergent spin out companies.
'We are delighted to announce the establishment of our dedicated investment fund set up specifically for spin out companies emerging from the University of Dundee,' he said.
'This is a welcome addition to our existing commercialisation infrastructure at the University, particularly during this tough financial climate.'
The University has an existing portfolio of 24 spin-out companies ranging from Axis-Shield, which launched 27 years ago, to its most recent, Rapid Quality Systems Ltd, which was established last month.
Three-quarters of these companies have been created within the last 10 years.Rapid Quality Systems Ltd is to be based at Dundee University Incubator (www.dundeeincubator.com), which now has 11 out of its 12 units occupied.
The commercialisation of the world-leading research being carried out at Dundee, particularly in the area of life sciences, already makes a significant contribution to the local economy. The establishment of the Fund, gives further scope for this to increase given this enhanced level of support for spin-out companies.
Investment in technology and the successful commercialisation of university research has been identified as being essential to ending the recession. The University’s relationship with Frontier IP, who will also be responsible for the management of the fund, will also help to accelerate access to capital and commercial expertise for new and vibrant companies and products coming from the University of Dundee.
Neil Crabb, Chairman of Frontier IP, said his company was drawn to the University because of its reputation for research excellence and the potential that existed within Dundee.
'The University of Dundee is one of the UK’s leading universities, with renowned expertise across a number of disciplines, particularly engineering and life and biomedical science,' he said.
'We are delighted to be supporting the exciting opportunities arising from the university’s cutting-edge research with the launch of this Fund. We are also delighted that we have gained partnership status with Scottish Enterprise’s Scottish Co-investment Fund, potentially doubling the funds to which the spin-outs have access.'
Notes to editors:
About Frontier IP Group plc
www.frontierip.co.uk
Based in Edinburgh, Frontier IP specialises in the commercialisation of the intellectual property developed by universities and research institutions. It establishes partnerships with individual universities and research institutions to assist with their spin-out activities and so helps to maximise the commercial value of technologies emerging from their research programmes.
Frontier IP is a subsidiary of Sigma Capital Group plc, the AIM quoted UK-based asset management group.
About the University of Dundee
www.dundee.ac.uk
The University of Dundee is one of the UK’s leading universities with an international reputation for
excellence across a range of disciplines including science, medicine, engineering and art.
This global international reputation for research excellence includes the medical and life
sciences - both rated 5* in the most recent Research Assessment Exercise.
Significant growth over the past decade means the University can now boast 18,000 students
, 3,000 staff, and an annual turnover of £160m.
Today 70 % of students graduate into the professions - more than any other university in
Scotland.
The University has a strong track record of commercialisation including the creation of
a portfolio of 24 spin out companies to exploit its intellectual property. This includes
AXIS SHIELD (www.axis-shield.com),1982 CYCLACEL
PHARMACEUTUICALS (www.cyclacel.com), 1996; CXR BIOSCIENCES
LTD (www.cxrbiosciences.com, 2001 and our most recent
spin out company RAPID QUALITY SYSTEMS LTD, August 2009. 75% of these companies have been created
within the last 10 years.
The University has successfully pioneered a number of innovative knowledge transfer models.
About Dundee University Incubator (www.dundeeincubator.com).
Dundee University Incubator (DUI) provides 12 high quality lab and office space for technology
based companies. DUI is located next to the University of Dundee's city centre campus on the
Dundee Technopole. The central location offers the advantages of an efficient business setting
with easy access to the University and its facilities.
The Technopole location means DUI is at the centre of a community of like minded technology
businesses. In essence Dundee University Incubator offers companies the right environment to grow
and establish.
The University’s business incubator facility is in its 5th year of operation. The facility
offers dedicated shell space for fledgling technology companies and an opportunity to locate
within a community of technology entrepreneurs adjacent to the Campus.
11 out of 12 units, (95%), are occupied by 9 tenants. Notable occupants include spin out
companies Quantum Filament Technologies Ltd, Dundee Cell Products Ltd, Whole Life Consultants
Ltd and CXR Biosciences Ltd, with latest spin out company Rapid Quality Systems Ltd occupying
by October 2009.
A technology location
Dundee is a renowned centre of university research and has particular strengths in lifesciences, computing and biomedical engineering. The city is witnessing the emergence of exciting digital media and biotechnology sectors.
About Scottish Enterprise
Scottish Enterprise is Scotland’s main enterprise, innovation and investment agency and is
focused on supporting business growth and developing a competitive business environment.
Working in partnership with industry, academia and the public sector, SE aims to play its part
in delivering the Scottish Government’s new economic strategy to increase productivity in
Scotland by helping businesses grow, encouraging greater innovation and creating the right
conditions for companies to access property, markets and finance. Further information can
be found at www.scottish-enterprise.com.
Scottish Enterprise has a joined up investment approach which offers risk capital investment
for Scottish businesses at various stages of growth. The Scottish Seed Fund provides equity and,
in some cases, loan investments from £20,000 to £100,000 to early-stage businesses that meet the
criteria and are keen to grow. The Scottish Co-investment Fund is a £72 million equity
investment fund established by Scottish Enterprise, and partly funded by the European
Regional Development Fund, to invest from £100,000 to £1 million in company finance deals
of up to £2 million. The Scottish Venture Fund was set up by Scottish Enterprise in
conjunction with the Scottish Government to invest £500,000 to £2 million in company
finance deals of between £2 million and £10 million. Further information can be found
at www.scottish-enterprise.com/equity.
For media enquiries contact:
Grant Hill
Press Officer
University of Dundee
Nethergate, Dundee, DD1 4HN
TEL: 01382 384768
E-MAIL: g.hill@dundee.ac.uk
MOBILE: 07854 953277 |
