Mercia Asset Regulatory News (MERC)

RNS Reach

27 October 2015

Mercia Technologies PLC

Mercia expands regional footprint with new office and university partnerships in Scotland

Mercia Technologies PLC (AIM: Merc, "Mercia"), a Midlands-based investment group building, funding and commercialising technology businesses across the UK, has opened an Edinburgh office and secured partnerships with Abertay University and the University of Strathclyde, to reinforce its support for early stage Scottish businesses. The office will be headed by Paul Devlin, who joins Mercia as Investment Manager, Scotland.

Located in central Edinburgh, the office will allow Mercia to bolster its commitment to finding and investing in disruptive, scalable technology businesses in Scotland, which is largely underserved by later stage investors despite its impressive variety of start-ups and spinouts.

Paul Devlin, who ran the LAUNCH.ed student company formation service at the University of Edinburgh until joining Mercia, will build a team in Scotland to increase Mercia's deal flow and provide the company with new and exciting investment opportunities. Paul has a strong track record as an entrepreneur and supporter of early stage businesses and has a wealth of expertise in market and technology assessment, academic and industrial collaborations, company formation and IP commercialisation.

Mercia's partnerships with Abertay University, which has notable strengths in the digital sector, and the University of Strathclyde, which excels in life sciences, manufacturing and electronics, will provide Mercia with a pipeline of new investment opportunities.

Mercia now has 11 partnerships with universities across the Midlands, the North and Scotland, with a dedicated technology transfer team to support spinout companies through to commercialisation. Spinouts from these partners now provide approximately 50% of all investments via Mercia's third party funds, managed by its wholly-owned subsidiary, Mercia Fund Management (MFM).

As a result, MFM recently successfully raised its University Growth Fund, a tax-efficient SEIS and EIS fund, which will be used to support university spinouts from Mercia's partners across the UK.

Mark Payton, CEO of Mercia Technologies, said:

"When we listed on AIM last year to scale our established model of informed and patient capital provision, Mercia made a clear statement of intent - that it was a national business with a strong focus on the Midlands, the North and Scotland, all of which are a hotbed of technology-led innovators struggling to find supportive investment.

"In 2014, £2.7bn was invested across the South East of England in venture capital against less than £300m across all of Scotland. We look forward to working with Scottish entrepreneurs to address this imbalance, with our focused investment activity and expertise, managed by industry-leading investment directors who have built highly successful businesses in each of the sectors we support."

Commenting on the opening of the Edinburgh office and his appointment, Paul Devlin said:

"This a fantastic opportunity to help scale up Scotland's existing start-ups and support the next breakthrough ideas. Mercia is well placed to support this, both through participating at later stage Series A investment, and also through its award winning SEIS and EIS investment funds. I look forward to heading these initiatives throughout Scotland and to working with the Mercia team."

Commenting on the new partnership, Stuart Mackenzie, Commercialisation Infrastructure Manager at the University of Strathclyde, said:

"The University is delighted to have added Mercia Technologies to our list of preferred investment partners. We have been impressed by Mercia's success in raising new funds in a difficult market, and by Mercia's commitment to expanding its geographic footprint.

"Since adopting a commercial investment policy in 2012, the University has invested over £1m in spinout company funding rounds led by established early-stage investors. We welcome the addition of Mercia to this list and look forward to participating in Mercia-led funding rounds."

Mark Batho, Vice-Principal and Deputy Vice Chancellor (University Services) at Abertay University, said:

"We're delighted to establish this partnership with Mercia Technologies. Their track record and expertise in providing specialist input to university start-ups, particularly in the digital sector, will be valuable in encouraging and supporting the creativity and dynamism for which our students are known."

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Note to editors

Mercia creates, funds and develops technology businesses nationally with an emphasis in the Midlands, the North and Scotland. It brings technology transfer, company formation, incubation, commercialisation and investment to technology ventures. Approximately 50% of its investments derive from university spinouts. Mercia invests across key technology sectors in which it has deep sector expertise.

The Mercia model is one of patiently nurturing businesses through its tax efficient third party funds under management, and then scaling them with direct investment at the point of commercial traction. Through this, Mercia has a well seeded portfolio and pipeline of investments - its 'emerging stars'.

Mercia's shares started trading on AIM on 18 December 2014 and since then up until 31 July 2015, Mercia has invested almost £15m directly across its portfolio of emerging stars, which in themselves have attracted total investment of over £70m alongside investment from the Group. In addition to its direct investments, Mercia (via Mercia Fund Management) has invested over £20m to build its portfolio of potential emerging stars.

Paul Devlin

Paul has worked in innovative technical and commercial environments throughout his 16 year career, making the transition from an engineer, patent holding researcher and company founder to a commercially focused senior programme manager, consultant and advisor.

Paul worked at Scottish Enterprise from 2009 to 2011 as a Senior Programme Manager, where he performed an extended ITI role which included commercialisation, research portfolio management and business process integration implemented to PRINCE2 and MSP guidelines.

From there, he worked at New Media Partners as a Senior Consultant, before moving on to the University of Edinburgh, first as a Senior Company Formation Executive, then as a Student Company Formation Manager.