A new investment fund dedicated to university spin-outs has been launched by MTI Partners.
A new investment fund dedicated to university spin-outs has been launched by MTI Partners.
The fundraising, in collaboration with higher education institutions including the University of Manchester, the University of Edinburgh and University College London, is looking to raise £150 million.
The Orion Fund, which MTI says is the largest fund raise of its kind in the UK, is set to provide seed funding for up to 35 companies through investments of between £250,000 and £750,000. However deals could rise to between £3 million and £5 million through later stage transactions.
Technology venture capital firm MTI has experience leading funds of Orion’s kind having previously managed its 2008 UMIP Premier Fund, a £32 million fund in partnership with the University of Manchester. To date UMIP has invested in spin-outs from Manchester, Oxford and Southampton.
Similarly to UMIP, the Orion Fund will feature MTI’s Proof of Principle investment programme which provides seed funding to ‘promising technology’ with the potential for commercialisation.
Managing partner at MTI, David Ward, comments, ‘Our new partners are all highly experienced operators who add substantially to the MTI skill base in terms of investor networks, strategic consulting backgrounds as well as being well versed in the MTI core value of building technology businesses.’
The universities involved in the fund take the role of Technology Transfer Offices (TTOs).
Cengiz Tarhan, managing director at UCL Business, adds, ‘UCLB looks forward to working with MTI and is excited about this partnership which is set to bring new money and established expertise to bear on realising more spin outs from the research carried out at UCL.’
CEO of UM13 at the University of Manchester says the fund is a ‘very exciting opportunity’ to develop the model of bringing the capital markets onto the campus which has been developed with MTI Partners through the UMIP Premier Fund.
He adds, ‘The weight of funding in seed investing is critical to success – so with a £150 million fund, we can really expect to see some good outcomes.’
