Braveheart Investments Regulatory News (BRH)

23 Jun 2008 07:01



For release:07.00, 23 June 2008

Braveheart Investment Group plc

("Braveheart" or the "Group")

BRAVEHEART SIGNS COMMERCIALISATION AGREEMENT WITH UNIVERSITY OF ABERDEEN

Braveheart strengthens its University ties by signing a deal with the University of Aberdeen to commercialise intellectual property for up to 15 years ("the University")

Braveheart (AIM: BRH), the technology commercialisation and investment management company, announces

that it has signed an agreement with the University of Aberdeen under which the two parties shall work

together to grow further the commercialisation of technology and intellectual property ("IP") emanating from the

University.

Under the terms of the agreement Braveheart will provide funding to finance spin-outs and will have the

mechanism to fund projects leading to licensing deals arising from University IP, as well as sponsoring the

University's annual "Blue Skies" business plan competition. In return, the University will grant Braveheart

a time limited exclusive right of first refusal in respect of all those commercial investment

opportunities in relevant defined areas.

The agreement constitutes a 'two phased' approach; Phase one will involve the two parties working together

to further stimulate and increase the commercialisation of IP within the University. Braveheart will provide

support in both financial and resource terms; funding will be made available via its existing Alpha EIS Fund, as

well as private client monies. The total funding package is anticipated to be around £5 million. It will also use

its network of experienced investors to provide crucial mentoring support to investee companies on

corporate development issues.

Phase two of the agreement will involve Braveheart setting up and managing a dedicated fund or resource for

the future commercialisation of University technology with funds being provided from Braveheart, the

University and other sources.

It is anticipated that Phase one will last between two and five years, depending on the results achieved, whilst

Phase two would have an initial investment period of five years with a subsequent follow-on investment and

management period of five years, giving the agreement a total lifespan of 15 years. 

Commenting on the investment, Geoffrey Thomson, Chief Executive of Braveheart said, "Our close

relationships with universities form the cornerstone of our strategy of identifying the most exciting early stage

technologies for our investors. We are delighted to have signed our third university partnership agreement and are confident that Aberdeen will remain a stronghold of research and development over the course of our

partnership." 

Professor Dominic Houlihan, Vice-Principal for Research and Commercialisation of

the University of Aberdeen added: "The University has a strong track record of high quality

research and the translation of that research into commercialisation opportunities. In Braveheart we believe we

now have a partner with proven ability to help us to strengthen our commercialisation success and we look

forward to working with them." 

For further information please visit www.braveheart-ventures.co.uk or contact:

Notes to Editors

Braveheart

Braveheart Investment Group is a technology commercialisation and investment management company based in Perth, Scotland. Since its formation in 1997 it has made the transition from start-up angel syndicate to fully listed company. Braveheart's shares listed on AIM in March 2007.

Investments are made in young, emerging, unlisted companies where there is potential for significant growth through successful commercialisation of IP and Braveheart enjoys close relationships with several universities to identify emerging technologies. Investments are predominantly technology-focused; however the Group also maintains limited exposure to more traditional businesses.

Braveheart's diverse portfolio currently comprises over 30 companies and it has completed over 70 deals in its ten year history, including 6 IPOs, 3 trade sales and 8 write-offs and has an exit IRR of 37%.

At the 2008 Ernst & Young Entrepreneur of The Year Awards (Scotland) Braveheart CEO Geoffrey Thomson was given a special award recognising his contribution and support of emerging technology businesses in Scotland over the past decade.

The Alpha EIS Fund ("the Fund")

Established in December 2005, the £2.5 million Fund was set up as a tax efficient vehicle to invest in early-stage, university spin out companies, rich in intellectual property, with potential for significant growth, through the commercialisation of their IP. The Fund is managed by Braveheart and participants and co-investors include Bank of Scotland Corporate, Scottish Enterprise's Co-investment Fund and Braveheart's own clients. The Fund will deliver a minimum of ten EIS qualifying investments, sourced through the Group's unique framework of strong formal relationships with Scottish universities and business parks.

To date the Fund has made 8 investments from the Alpha Fund, totalling in excess of £1 million.

The University of Aberdeen

Many of the University's portfolio of over 90 patents are currently being exploited by industry through 54 license agreements and 12 spin-outs; the latter having raised investment of £48.5M. Three of those spin-outs were sold or partially sold in the last year.

The University of Aberdeen is an acknowledged centre of excellence for Life Sciences 

and Medicine. Translational research is one area of particular strength because of its wide range of internationally recognised health research, underpinned by many of its leading scientists and clinicians based on one of the largest teaching hospital sites in Europe. 

Over the last five years, the University has made major strategic investments in its estates, its people, and its infrastructure, to consolidate its position as one of the world's key centres for R&D in life sciences, medical research, and physical sciences.

With its ambitious Sixth Century Fundraising Campaign, the University is one of the most progressive fundraising higher education institutions in the UK. Over the last two years, Aberdeen has recruited more than 50 senior academic leaders from institutions all over the world.