Braveheart Inv Regulatory News (BRH)

2 July 2010

Braveheart Investment Group plc

("Braveheart" or the "Group")

Investment in mLED limited

Braveheart (AIM: BRH), the technology commercialisation and investment management company, today announces an investment into mLED Limited ("mLED" or "the Company"), a spin-out from the University of Strathclyde ("Strathclyde" or "the University"). The £150,000 funding package comprises funds from Braveheart's Strathclyde Innovation Fund and its Alpha Fund, as well as from Scottish Enterprise's Seed Fund.

mLED is a newly formed company, which has developed its technology at the University's Institute of Photonics ("IoP"). The IoP is recognised as a world leading institute in the development and supply of micro light emitting diodes ("microLEDs").

microLEDs are devices made up of thousands of tiny emitters producing light in a compact, integrated package. Unlike other micro-display technologies, microLEDs do not require a plethora of external components, such as optics and switching matrices, to modulate the light pattern, thereby making them more compact and efficient and ideal for miniature applications.

The IoP and its work has generated enquiries from academic and industrial bodies on availability of microLED devices for a range of applications including optogenetic studies. Optogenetics is a relatively new body of research in neuroscience and is being used in order to gain an understanding of how the brain processes information in order to precisely identify circuitry implicated in neurodegenerative disorders. It is anticipated that optogenetic tools and the resultant findings will revolutionise medical science and could impact on future treatments for conditions such as Alzheimer's, Parkinson's, depression and chronic pain. The Company is planning on initially addressing the neurotechnology market which, is forecast to grow from US$3.6 billion in 2008 to US$8.8 billion in 2012/13. 

Other applicable market sectors include micro-displays, wireless communications, microscopy, pico projection, general lighting, printing and photolithography.

Commenting on the investment, Geoffrey Thomson, Chief Executive of Braveheart said; "We are delighted to support another spin-out from the University of Strathclyde. mLED has some very promising technology and we look forward to supporting them through the next exciting stage of their development."

Dr Jim Bonar, CEO of mLED, said "mLED is extremely pleased to have gained exclusive rights to world-leading microLED technology. This funding will enable mLED to develop product capabilities in a range of markets, including evolving life science markets such as neuroscience and also to supply mLED development kits, thus, offering developers the ability to integrate microLED array technology into their own innovative applications."

For further information please visit www.braveheartinvestmentgroup.co.ukor www.mled-ltd.com or contact:

Notes to Editors

Braveheart

Braveheart Investment Group is a technology commercialisation and investment management company based in Perth, Scotland. It was founded in 1997 by a small group of investors in order to encourage and syndicate investments in privately held companies that offered opportunities for significant growth. Thirteen years on, Braveheart is a public company with offices in Perth, London and Yorkshire, and a demonstrable track record in early stage technology investing as well as an established client base of high net worth individuals. Service offerings include bespoke EIS portfolios, fund management, investment facilitation and management services.

Investments are made in young, emerging, unlisted companies where there is potential for significant growth through successful commercialisation of IP. Through close relationships with a number of leading universities and innovation centres Braveheart has access to a wide variety of emerging commercial opportunities at early stages. There are currently around 30 companies in Braveheart's diverse portfolio and it has completed over 80 deals in its 13 year history.

The Strathclyde Innovation Fund ("SIF" or "the Fund")

An agreement to create the Strathclyde Innovation Fund was announced in 2007 by Braveheart and the University of Strathclyde. SIF has the exclusive right of first refusal to fund all commercial investment opportunities that arise in respect of intellectual property emanating from the University of Strathclyde. The fund is unique in its structure and is the first of its kind in a UK higher education institution. A first closing of the fund was achieved in September 2008, with initial commitments totalling £4.5 million from investors including Braveheart, the University of Strathclyde and Strathclyde alumni. This also included Scottish Enterprise's Scottish Co-investment Fund, which will co-invest alongside the SIF by committing a specific allocation for use by SIF. SIF will operate for an initial period of eight years, extendable to 10 with the agreement of the partners in the fund.

Braveheart Investment Group's operating subsidiary Braveheart Ventures also acts as Fund Manager of SIF. Under the terms of the partnership, 25 per cent of the Fund Manager's performance bonus is paid back to the University, providing it with further direct benefit from those opportunities which succeed in generating returns. SIF also makes a small contribution to the running costs of a department that sponsors a successful investment application.

mLED is SIF's third investment.

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 Ventures, and participants and co-investors include Scottish Enterprise's Scottish Co-investment Fund and Braveheart's own clients. The Fund committed to 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.

mLEd is Alpha's 11th investment and to date it has invested approximately £1.5 million.

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.

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

Institute of Photonics

The Institute of Photonics, established in 1996, is a commercially-oriented research unit, part of the University of Strathclyde. The Institute's key objective is to bridge the gap between academic research and industrial applications and development in the area of photonics.

The Institute's research interests include semiconductor materials and devices, practical, all solid state lasers, micro-LED arrays and a wide range of applications particularly in biophotonics.

The Institute of Photonics is based in Strathclyde's Glasgow city centre campus

Further information can be found at www.photonics.ac.uk/welcome.html