Cambridge Innovation Capital (CIC) has raised £50 million so that it can begin investing in the Cambridge technology cluster.
The fund is hoping to fill what it describes as the ‘valley of death’ commercial development stage with long-term equity finance.
Alongside Invesco Perpetual and Lansdowne Partners, further capital has come in the form of semiconductor business ARM (which is based in the area), academic institution commercialisation fund IP Group and the University of Cambridge Endowment Fund.
The fund has been set up to cater for a demand which has arisen from an area which has 19 science and business parks with a reported 1,500 tech companies. CIC will be injecting capital into sectors such as life sciences and engineering and computer science.
Mike Muller, co-founder and CTO of ARM, comments, ‘As a global business, ARM has seen the impact of different approaches to developing growing businesses.
‘We hope that a mix of investment to provide a springboard for innovative companies and mentoring will be a catalyst for the next series of successful “ARMs” in and around Cambridge.’
More on Cambridge-based start-ups:
- Acacia Pharma secures £15 million funding
- UK Tech Innovators 2013: Bactest
- Index Ventures closes its biggest life sciences investment
To go with the £50 million CIC now has at its disposal, an academic panel has also been created to provide mentoring and advice. ARM co-founder Hermann Hauser, former ARM CEO Warren East and Greg Winter, master of Trinity College and founder of Cambridge Antibody Technology and Domantis, are all on board.
According to a statement, it is expected that the capital will last two to three years – after which additional funds will be raised by means of an IPO.
Edward Benthall, non-executive chairman of CIC, adds, ‘Many good companies have to spend too much time fundraising, leaving them with less time to focus on running their business.
‘CIC will work with angel and other long-term investors to bring innovative technologies to market and help build world-class businesses.’