Aberdeen University: long-term IP deal.
In return Braveheart will provide funding to finance spin-outs and proof of concept work leading to licensing deals, as well as sponsoring the university’s annual “Blue Skies” business plan competition.
The agreement consists of two phases. In phase one the two will work together to further stimulate and increase the commercialisation of intellectual property. Braveheart will provide both financial support and resources. The money will come from the firm’s existing Alpha EIS Fund and private investors, with total funding expected to be around £5 million. Braveheart will also draw on its network of experienced investors to mentor investee companies on corporate development issues.
The £2.5 million Alpha EIS Fund was set up in December 2005 as a tax-efficient vehicle to invest in early-stage university spin-out companies.
Phase two of the agreement will involve Braveheart in setting up and managing a dedicated fund for the future commercialisation of the university’s technology, with the money coming from Braveheart, the university and other sources.
Phase one is expected last between two and five years, depending on the results achieved, while Phase two will have an initial investment period of five years, with a follow-on investment and management period of five years, giving the agreement a total lifespan of 15 years.
The University of Aberdeen was founded in 1495, making it the third oldest in Scotland and the fifth oldest in the UK. It educates close to 14,000 students per annum and has attracted research awards of up to £50 million to date. It has existing commercialisation expertise in life sciences, medicine, engineering and geosciences and has been awarded 22 proof-of-concept awards. In addition the Research and Innovation department has been involved in a number of spin-outs, including Brinker Technology, Haptogen and B1 Medical.
Geoffrey Thomson, Chief Executive of Braveheart, said, “Our close relationships with universities form the cornerstone of our strategy of identifying the most exciting early stage technologies for our investors. We are delighted to have signed our third university partnership agreement and are confident that Aberdeen will remain a stronghold of research and development over the course of our partnership.”
Dominic Houlihan, Vice-Principal for Research and Commercialisation at Aberdeen, said, “The university has a strong track record of high quality research and the translation of that research into commercialisation opportunities. In Braveheart we believe we now have a partner with proven ability to help us to strengthen our commercialisation success.”
Braveheart Investment Group, based in Perth, Scotland, was founded in 1997 as a start-up angel syndicate and listed on the Alternative Investment Market in London in March 2007.
The company’s portfolio comprises over 30 companies and it has completed over 70 deals in its ten year history, including six initial public offerings, three trade sales and eight write-offs.
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