16 Sep 2009 07:00
SGM
16 September 2009
SIGMA CAPITAL GROUP PLC
("Sigma" or "the Group")
Re: Frontier IP Group Plc
Launch and First Closing of Second University IP Investment Fund
Sigma, the specialist asset management and advisory group, is pleased to report that its Plus-quoted subsidiary, Frontier IP Group Plc ("Frontier IP"), has today announced the launch and First Closing of the second dedicated venture fund for investment in university partner spin-out companies.
The new fund has been created to support the commercialisation of intellectual property developed by the University of Dundee and is called University of Dundee Venture Fund LP ("the Dundee Fund" or "the Fund"). At the same time, the Dundee Fund has secured partnership status with Scottish Enterprise's Scottish Co-investment Fund. This makes a total of up to £1.5m potentially available to spin-out companies from University of Dundee.
The Dundee Fund launches with committed funds at First Closing of £0.75 million. Frontier IP and University of Dundee are the first investors in the Fund with Frontier IP committing £500,000 to the Fund through its subsidiary, Frontier IP Investments Limited, and the University of Dundee committing £250,000. Scottish Co-Investment Fund partnership status enables the Scottish Co-investment Fund to invest alongside the Dundee Fund in individual university spin-out companies, matching, subject to other criteria, pound-for-pound the investment made by the Fund.
In addition, the Dundee Fund can remain open to new investors for a further two years.
The University of Dundee is one of the UK's leading universities with an international reputation for excellence across a range of disciplines including engineering, medical and life sciences. The Fund will offer investment and support to commercial opportunities generated at the University of Dundee and has the first right to fund any spin-out company from the university's colleges and schools.
Initially, Sigma's subsidiary, Sigma Technology Management Limited ("STM"), will act as manager of the Fund, as part of the services management agreement between STM and Frontier IP Limited, a Frontier IP subsidiary. However, it is intended that Frontier IP Limited will assume the management of the Fund once it has received approval to do so from the Financial Services Authority.
Graham Barnet, Chief Executive Officer of Sigma, commented,
"I am delighted to report that our subsidiary, Frontier IP, continues to make progress on its strategy of establishing dedicated venture funds for its university partners. The University of Dundee has established an excellent track record in research and spin-out opportunities and this Fund, along with the commitment from Scottish Enterprise's Co-Investment Fund, will strengthen the university's ability to develop innovative ideas into attractive commercial entities."
For further information please contact:
| Sigma Capital Group plc | T: 0131 220 9444 | |
| Graham Barnet, Chief Executive | ||
| Biddicks | T: 020 7448 1000 | |
| Katie Tzouliadis/ Sophie Lane | ||
| Arbuthnot Securities | T: 020 7012 2000 | |
| Tom Griffiths/ Neil Kirton | ||
About Sigma Capital Group plc
www.sigmatech.co.uk
Sigma Capital Group plc is an AIM quoted UK based specialist asset management group. The company has two subsidiaries investing in companies developing technologies relating to clean energy and energy efficiency, and investment property in the UK. Its third subsidiary, Frontier IP Group plc, which specialises in the commercialisation of Intellectual Property from universities and research institutions, is traded separately on the PLUS-quoted market.
About Frontier IP Group plc
www.frontierip.co.uk
Based in Edinburgh, Frontier IP specialises in the commercialisation of the intellectual property developed by universities and research institutions. It establishes partnerships with individual universities and research institutions to assist with their spin-out activities and so helps to maximise the commercial value of technologies emerging from their research programmes.
Frontier IP is traded on the PLUS-quoted market and is a subsidiary of asset management group Sigma Capital Group plc.
About the University of Dundee
www.dundee.ac.uk
The University of Dundee is one of the UK's leading universities with an international reputation for excellence across a range of disciplines including science, medicine, engineering and art.
This global international reputation for research excellence includes the medical and life sciences - both rated 5* in the most recent Research Assessment Exercise.
Significant growth over the past decade means the University can now boast 18,000 students, 3,000 staff, and an annual turnover of £160m.
Today 70 % of students graduate into the professions - more than any other university in Scotland.
The University has a strong track record of commercialisation including the creation of a portfolio of 24 spin-out companies to exploit its intellectual property.
About 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. Further information can be found at www.scottish-enterprise.com.
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/equity.