Fusion continues its university spin-out investment trail

SHEFFIELD-based university commercialisation company Fusion IP has confirmed yet another investment in a Cardiff University spin-out.

The firm announced today that is investing £75,000 in Medaphor – the developers of an advanced ultrasound training tool.

The deal will see Fusion own 36.7% of Medaphor, which also attracted a £75,000 from Finance Wales in its latest fund-raising round.

The firm is developing a virtual reality ultrasound training device called ScanTrainer, which combines high quality ultrasound images with world-class computer-based feedback and training.

The product, which eliminates the current ultrasound training constraints of limited equipment, trainers and volunteers, can be applied to a number of different therapeutic areas.

The funds raised today will enable Medaphor to complete development of the ScanTrainer prototype and move it into commercialisation with a product launch now planned for the first half of 2010.

David Baynes, chief executive of Fusion IP, said: “The innovative ScanTrainer will initially be targeted for the obstetrics and gynaecology ultrasound training market, the largest and most pressing ultrasound market where current training needs are unmet.

“Due to NHS requirements to deliver more qualified diagnostic imaging professionals, we believe that the ScanTrainer is strongly positioned for the postgraduate and continuous professional development segments.”

Steve Smith, director early stage investments at Finance Wales, said: “”Since signing the co-investment memorandum of understanding with Fusion IP we have been exposed to some very exciting early stage investment opportunities spinning out from Cardiff University.

“We look forward to strengthening our relationship through more co-investments with them.”

Earlier this week Fusion announced it had made a further investment of £300,000 in Diurna – a Cardiff-based company developing an alternative drug delivery to patients suffering from reduced cortisol and testosterone levels.

It also reported that one of its portfolio companies Morvus Technologies had completed a £2.15m fund-raising.

The firm said that the successful fund-raising should result in a value uplift of around £450,000.

Following the funding round Fusion has a 9.7% shareholding in Morvus.