IP Group Completes £5 Million Investment in Cambridge Innovation Capital; Signs MoU to Facilitate Access to Co-Investment Opportunities
Published: Oct 10, 2013
10 October 2013 -- IP Group plc (LSE: IPO) (“IP Group” or “the Company” or “the Group”), the developer of intellectual property based businesses, is delighted to announce that it has completed a strategic investment of £5m in Cambridge Innovation Capital plc (“Cambridge Innovation Capital” or “CIC”), alongside the University of Cambridge Endowment Fund, ARM Holdings plc (“ARM”), Invesco Perpetual and Lansdowne Partners.
Cambridge Innovation Capital, which has raised £50m to date and in which IP Group has an 8% stake, will support the growth of innovative businesses based in the ‘Cambridge Cluster’ by investing long-term equity finance to help companies bridge the critical middle stage of commercial development. The University of Cambridge will support CIC through its commercialisation office, Cambridge Enterprise.
In addition, IP Group and Cambridge Innovation Capital have entered into a Memorandum of Understanding to share information on investment and co-investment opportunities in the Cambridge Cluster and, where practicable and alongside other co-investors, to provide each other with access to such co-investment opportunities.
CIC’s management team is led by Peter Keen, a leading entrepreneur both as an executive and investor; he was also Co-Founder of Merlin Biosciences. The Board of CIC is led by Non-Executive Chairman Edward Benthall, a former partner at Charterhouse Capital Partners LLP.; and also includes Mike Muller, Chief Technology Officer of ARM and Cambridge Enterprise Chief Executive, Tony Raven.
CIC will also benefit from the advice of a world-class academic and business panel which includes Hermann Hauser, the founder of ARM, Warren East, the former CEO of ARM, Prof. Sir Greg Winter, Master of Trinity College and founder of Cambridge Antibody Technology and Domantis, Prof. Sir Richard Friend, Cavendish Professor of Physics and founder of Cambridge Display Technology, and Jonathan Milner, Founder and CEO of Abcam Plc.
Cambridge is one of the most dynamic technology and business clusters in the world and the University is at its heart being surrounded by 19 science and business parks and over 1,500 high-tech companies, a dozen of which have achieved a valuation of over $1 billion. These companies operate across a wide range of technologies, from life sciences, to engineering and computer science, reflecting the breadth of world-class research carried out at the University. The largest of these is ARM, whose technology is powering the smart phone and tablet computing revolution.
Alan Aubrey, Chief Executive of IP Group, said: “We are delighted to have made this investment in Cambridge Innovation Capital. Cambridge has a well-documented and rich history of innovation, having produced many of the country’s best known technology businesses. IP Group has made a number of investments in Cambridge to date and we are excited to be joining forces with likeminded investors and look forward to committing more capital to the next generation of Cambridge technology companies.”
Edward Benthall, Non-Executive Chairman of CIC, said: "Many good companies have to spend too much time fundraising, leaving them with less time to focus on running their business. CIC will work with angel and other long term investors to bring innovative technologies to market and help build world-class businesses.”
Professor Sir Leszek Borysiewicz, Vice-Chancellor of the University of Cambridge, said: “The University benefits society through the pursuit, dissemination, and application of knowledge. With the launch of CIC, the University and our co-investors are taking an important step in supporting the continued economic growth of the region and the country.”
For more information, please contact:
IP Group plc www.ipgroupplc.com
Alan Aubrey, Chief Executive Officer +44 (0) 20 7444 0050
Liz Vaughan-Adams, Communications +44 (0) 20 7444 0062 / +44 (0) 7979 853 802
FTI Consulting (for IP Group)
Ben Atwell, John Dineen +44 (0) 20 7831 3113
Cambridge Innovation Capital
Edward Benthall, Non-Executive Chairman +44 (0)20 7367 5100
Peter Keen, Chief Executive +44 (0)1223 765001
Sarah Collins, Office of Communications,
University of Cambridge
Tel: +44 (0)1223 760335 Mob: +44 (0)7500
Cubitt (for CIC)
Simon Brocklebank-Fowler, Managing Partner +44 (0)20 7367 5100
James Isola, Director
+44 (0)20 7367 5100
About IP Group
IP Group is a leading UK intellectual property ("IP") commercialisation company, developing technology innovations primarily from its research intensive partner universities. The Group offers more than traditional venture capital, providing its companies with access to business building expertise, networks, recruitment and business support.
The Company's portfolio comprises holdings in over 70 companies including Oxford Nanopore Technologies, the DNA sequencing development company, Revolymer, best known for its removable chewing gum and Xeros, which has received many accolades for its revolutionary clothes washing techniques with a much reduced requirement for water.
The portfolio includes early stage to mature businesses and has exposure to five main sectors - Energy & Renewables, Medical Equipment & Supplies, Pharma & Biotech, IT & Communications and Chemicals & Materials. To date, fifteen of the portfolio companies IP Group has backed have listed on the AIM market of the London Stock Exchange and one on ISDX.
Founded in 2001, IP Group listed on AIM in October 2003 and moved to the Official List in June 2006. For more information, please visit our website at www.ipgroupplc.com.
About Cambridge Innovation Capital
CIC was established with the support of the University of Cambridge to invest in high growth, earlystage technology spinouts from the University of Cambridge and the wider Cambridge cluster.
CIC will seek to fund companies with emerging technologies to maturity, helping to commercialise research notably in the life sciences, as well as physical and engineering sciences, and focusing on opportunities capable of achieving significant scale. Supported by Cambridge Enterprise, the commercialisation arm of the University of Cambridge, CIC will capitalise on its strong relationships within the technology sector to identify business opportunities with the potential to generate significant capital returns.
Cambridge Enterprise, formed in 2006 as a wholly-owned subsidiary of the University of Cambridge, is a leading technology transfer organisation with a successful track record of supporting new technology businesses arising from the University and the wider Cambridge cluster. Responsible for commercialisation arrangements for University discoveries, Cambridge Enterprise works in three overlapping areas including technology transfer services, consultancy services, and Cambridge Enterprise seed funds.
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