This is the second dedicated fund to be established by Frontier since its formation in May 2009 by Sigma Capital Group, an Edinburgh-based finance house. The first fund is supporting spin-outs from Robert Gordon University in Aberdeen.
In addition, the Dundee Fund has secured partnership status with Scottish Enterprise’s Scottish Co-investment Fund, meaning a total of up to £1.5 million is potentially available to spinout companies.
The Dundee Fund was launched with committed funds at the first closing of £750,000 million, of which £500,000 came from Frontier and the remainder from the university itself.
Having Scottish Co-Investment Fund partnership status enables the Co-investment Fund to invest alongside the Dundee Fund in individual university spin-out companies, matching pound-for-pound the investment made by the fund. In addition, the Dundee fund remains open to new investors for a further two years.
The fund will be managed by Frontier IP Limited, once it has received approval to do so from the UK Financial Services Authority. In the interim, Sigma Technology Management Limited, a subsidiary of Frontier IP’s major shareholder, Sigma Capital Group plc., will run the fund.
Frontier IP Limited has a 10-year partnership Dundee University, under which it will provide investment and support and has the first right to fund any spin-out company.
James Houston, Director of Research and Innovation Services at Dundee said, “This is a welcome addition to our existing commercialisation infrastructure at the university, particularly during this tough financial climate and which taken together with our relationship with Frontier IP Ltd will accelerate access to capital and commercial expertise, respectively.”
In July, Frontier launched its first dedicated venture capital fund for Robert Gordon University, with which it has a 25-year deal. The RGU Ventures Investment Fund LP has total potential funds for investment of £2.2 million, including partnership status with Scottish Enterprise’s Scottish Co-Investment Fund.
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