IP Group plc has launched a GBP30m venture capital fund, IP Venture Fund II, in partnership with venture capital investor European Investment Fund (EIF). IP Venture Fund II will invest alongside IP Group in new spin-out companies from IP Group’s university partnerships and other collaborations with the EIF effectively investing alongside IP Group.
The fund comprises GBP30m of capital with a GBP20m contribution from the EIF and a GBP10m contribution from IP Group. The fund will co-invest with IP Group in such ratio that the effective investment ratio between IP Group and the EIF will be 4:1 when considering that IP Group will also directly invest in companies alongside the fund.
The creation of the fund follows the success of its predecessor, IP Venture Fund, IP Group’s original GBP31m fund with the EIF which was created in 2006. To date, IP Venture Fund has invested GBP21m into 26 of the group’s portfolio companies.
As with the original fund, IP Venture Fund II will be managed by Top Technology Ventures, the FCA authorised venture capital fund management subsidiary of IP Group.
Alan Aubrey (pictured), chief executive of IP Group, says: “We are delighted to have agreed a second fund with the EIF; a key partner for the group who share a similar view on the importance of providing long-term ‘patient’ capital to intellectual property commercialisation. Finding like-minded partners to invest alongside us remains an important component of our model; ensuring our most promising companies have access to patient capital as well as delivering synergistic value to both shareholders and partners. We are very much looking forward to our expanded relationship with the EIF.”
Piyush Unalkat, principal (equity investments) of the EIF, says: “We have been working with IP Group since 2006 and have been impressed by the group’s ability to build valuable companies from the best of British intellectual property and evidence returns to co-investors and shareholders. We look forward to creating the next generation of spin-outs with the new fund.”
