Edinburgh Research and Innovation (ERI), the University of Edinburgh’s technology transfer office, has announced a strategic alliance with MTI, the London-based venture capital fund manager which secures a GBP150 million injection to university spin out activity.
Companies working through ERI, or the technology transfer offices at the University of Manchester and University College London, can access the Orion Fund, a significant venture capital fund, raised and managed by MTI.
The Orion Fund will invest primarily into companies and commercialisation projects emerging from the three universities. 

It is the technology base of the University of Edinburgh and the companies formed around that technology that first attracted MTI to ERI.
Professor Sir Tim O’Shea, Vice Chancellor and Principal of the University of Edinburgh, says: “Our partnership with MTI is important news for the University of Edinburgh and good news for the Scottish economy. It will introduce a new investor to the Scottish scene and one capable of making significant investments into our best spin-out and start-up companies. As a result, more of those companies will develop into major international enterprises and this will deliver real benefit to the local economy.”
The ERI/MTI partnership will help fill one of the major gaps in the Scottish economy – the availability of substantial investments of early-stage risk capital. By enabling those investments into its pipeline of technology based companies, ERI aims to deliver even greater impact into the Scottish economy.
Significantly, MTI is committed to invest alongside local investors as well as introducing its international network of venture capital co-investment partners to Scottish deals. MTI is planning to open an office in Edinburgh and over the coming months will hold meetings with the local investment community.
ERI will maintain its close engagement with Scottish business angel syndicates ensuring they retain an active role in the University of Edinburgh’s company formation activities.
The Orion Fund will be the largest fund of its kind in the UK. The Orion Fund follows MTI’s successful experience with its UMIP Premier Fund, the GBP32million Fund in partnership with the University of Manchester. The UMIP Premier Fund has invested to date in 12 spin-outs in its portfolio and has made eighteen Proof of Principle (PoP) investments. 

Richard Henderson, Managing Partner of MTI says: “MTI sees this as a tremendous opportunity to supercharge the commercialisation of intellectual property, with additional, rather than replacement capital and expertise. The absence of a significant dedicated fund has retarded the creation of world class companies from the extremely rich intellectual property of the top tier research universities.
“The introduction of a significant wall of capital, capable of investing from proof of principle and crucially, capable of following on through to later stage, should provide a great opportunity for business creation and investor returns, from the relatively underserved source of wealth creation. MTI is delighted to work closely with ERI in raising the Orion Fund.”
In common with the UMIP Premier Fund, the Orion Fund will feature a PoP investment programme. PoP investments into the University of Edinburgh projects will be overseen by ERI and will provide development funding into academic research teams to develop promising technology with the potential for commercialisation.
ERI is well established as the leading technology transfer office in Scotland and one of the most successful in the UK. It has secured research funding of over £187M for the University of Edinburgh in 2010/11 whilst completing 65 license transactions with new and established companies and generating over £5M in consultancy income.
In the three years to 2010/11, ERI supported the formation of 14 spin-out and 87 start-up companies, making it the best performing Technology Transfer Offices in the UK.
Welcoming the announcement of the strategic alliance and the creation of the Orion Fund Jim McFarlane, Managing Director of Operations at Scottish Enterprise, says: "The University of Edinburgh continues to produce some of the most exciting research and innovative young companies with technologies that boast global potential and this new partnership is excellent news that will help drive further investment and confidence in those companies. We have worked closely with the University of Edinburgh to support commercialisation of research and recognise that improving access to finance for commercialisation of research and early stage companies is critical for long-term economic recovery.
“We are therefore encouraged by this new alliance and fund which not only has the potential to significantly increase venture capital activity and presence in Scotland but will build on existing efforts to bridge the gap between industry and world class research."
