IP group goes into overdrive

It’s been a hyperactive month for the UK technology commercialisation company IP Group plc, which announced a string of investments in its university spin-offs and forged a new deal with the University of Bath.

The first to benefit from the splurge was Retroscreen Virology Ltd, a spin-out from Queen Mary University of London. IP Group invested £1 million for a 25 per cent stake in the virology contract research specialist. The deal represents IP Group’s first investment as part of its partnership with Queen Mary, which was announced in July.

Retroscreen, founded by virology expert John Oxford, looks to be a lower risk investment than many in life sciences. It has an income stream from carrying out clinical trials in virology under contract and made a profit of £0.5 million on turnover of £2.4 million in the year to July 2006.

Next in line was Oxford Advanced Surfaces (OAS) Ltd, a spin-out from Oxford University Chemistry Department. IP Group invested £500,000, giving it a 43 percent stake. At the same time the management team of OAS invested a further £45,000.

OAS is developing a coating technology based on carbene chemistry. The coatings are a few molecules thick, yet produce dramatic changes in the surface properties of inert materials including polyethylene, glass, Teflon and diamond. Initial applications include changing colours in polymers displays, adhesion which enables metals to be stuck to plastic films and antibacterial activity for use in water or air purification filters.

Then earlier this week IP Group said it was putting in £350,000 for a 40 per cent stake Simulstrat Ltd, a spin out from the unlikely source of the War Studies Group at King’s College London. This is the third investment in a King’s spin-out in the last 12 months.

Simulstrat is a business consultancy that runs simulations based on war-gaming methodology, simulating future political, economic and technological factors that will affect the operating environment of businesses. The company has already used its methodology to deliver simulations for a large pharmaceutical company.

To round off IP Group made a 25 deal to invest in companies emerging from Bath University, agreeing to invest an initial £5 million.