IP Group, which develops intellectual property based businesses, has signed a commercialisation agreement with the University of Manchester to create a proof of principle funding facility for the identification and formation of new spin-out companies.
The company will make available an initial facility of up to £5.0m to provide capital to new proof of principle projects intended for commercialisation through spin-out companies and in return will receive equity stakes in these spin-out companies on pre-agreed terms. It will also have the right to increase its investment in the spin-out companies should it wish to do so.
IP will provide access to its relevant experts, business building expertise, mentoring, coaching and co-investing networks, recruitment and business support.
Alan Aubrey, the Chief Executive of IP Group, said: ‘Manchester has an outstanding reputation in research, ranking third in the UK, as well as an impressive track record of innovation. This agreement augments our existing partnerships while also giving the group access to an additional source of extremely high quality dealflow.
‘We have been impressed not only with the pipeline of opportunities at the University but also with the professionalism of the technology transfer team. We are pleased to have entered into this agreement and look forward to working with the UMI3 team and making our first investments.’