University spin-out specialist sees progress

THE launch of the North East Technology Fund and progress in its investments has helped boost intellectual property commercialisation company the IP Group.

The Sheffield-based firm, which specialises in funding university spin-outs, said today that the value of its portfolio remained stable during the first quarter of 2010 and that there had been “many examples” of its businesses continuing to make technical and commercial progress.

Firms to have achieved significant financings include Oxford Nanopore Technologies, Ilika, and Leeds University spin-out Syntopix, which raised £2m through a share placing.

During the period from January 1, 2010 to April 28 the group invested a total of £2.3m into 11 portfolio companies.

During the equivalent period in 2009 IP invested £1.2m into 10 companies.
Investments during the period included the first two co-investments with Fusion IP following the group’s acquisition of a strategic 19.8% shareholding and completion of a co-investment agreement in December 2009, into Asalus Medical Devices and Seren Photonics.

The group made total realisations during the period of £600,000 compared to nothing for the equivalent period in 2009.

IP said that the group remained financially strong with no borrowings and that the launch of the North East Technology Fund had strengthened its fund management arm and widened its pipeline of potential investment opportunities.

In January IP announced that it had won the mandate to manage the £25m fund created to invest in technology companies in the North East.

The group has now established an office in Newcastle.

Founded in 2001, IP Group listed on AIM in October 2003 and moved to the main market in June 2006.

It has made two acquisitions to date – Techtran, a company set up to commercialise university intellectual property under a long term contract with Leeds University in 2005 and Top Technology Ventures – an investment adviser to early stage technology venture capital funds.

IP Group has formed long-term partnerships with 10 universities including York.

Its portfolio is diverse with exposure to five main sectors – energy and Renewables, medical equipment and supplies, pharmaceuticals and biotech, IT and communications and chemicals and materials.

To date 11 portfolio companies have listed on the AIM market of the London Stock Exchange, one on PLUS Markets and there have been four trade sales.