University’s spin-out arm makes good progress

THE company responsible for helping University of Manchester spin-out firms take their first steps into the commercial world, moved into profit this year.

The performance of University of Manchester I3 –  known until August as UMIP (University of Manchester Intellectual Property) – generated a surplus of £329,658, of which all by £4,500 was transferred via Gift Aid back to the university.

The profit came despite a slight fall in turnover, from £4.6 to £4.3m in the year to the end of July, but after significant costs were taken out of the business – the result of an early retirement and voluntary severance scheme – staff costs were reduced from £2.5m to £2m.

Newly-filed accounts show staff numbers were reduced from 40 to 34 during the year – and the posts that were cut were ‘corporate functions’ roles. Staff involved in technology transfer were not impacted.

Chairman Dr Krishnamurthy Rajagopal said the company had had a “successful year” with a good overall financial performance.
 
He said UMIP had been renamed University of Manchester I3 as a result of a reorganisation of the university’s innovation and spin-out functions. From August 1 I3 now comprises of both UMIP and the University of Manchester Innovation Centre (UMIC) – which runs the business incubator premises.

“We have brought them together in a more cohesive arrangement where our networks, connections, resources, experiences and services can be deployed more effectively and with greater impact,” he explained.

He said there is a “flourishing pipeline of projects” coming out of the university’s research, and more than 300 invention disclosures had been made in the year. This is the first step in patenting a new idea or discovery.

During the year 30 early stage projects were awarded £2.1m funds controlled by the university and awarded by its investment committee.

The existing portfolio of spin-outs received venture capital investment of of over £16m, Dr Rajagopal said.

His statement continues:  “The UMIP Premier Fund, which is a £32m venture fund focused on investment in University spin-out companes at the late seed stage has now operated for three years. They have invested in 12 spin-outs and 19 proof of principle projects and to date half of the fund has been drawn down.

“The fund managers continue to be satisfied with the overall development of the portfolio.”