New Opportunities for Strathclyde Technology
Anthony Rommens
22-Apr-07
On 7 February, The University of Strathclyde announced it is to join forces with venture capital company, Braveheart Investment Group, to pioneer a new way of bringing cuttingedge technology out of the labs and into the marketplace. Together they will launch a fund - the first of its kind in a UK university - to invest in spin-out companies and other opportunities to commercialise intellectual property.
The Strathclyde Innovation Fund will have an initial value of up to £12 million and will be managed by Braveheart. Other investors could include members of the Strathclyde 100 - a group of successful entrepreneurs and business experts who have attended the University; the Bank of Scotland Corporate; and a number of institutional and private investors.
David McBeth, Director of Research & Innovation at Strathclyde, said: “The University is a front runner not only in pioneering technology for a range of industries, but for commercialising that technology and bringing it to the marketplace.
“The Strathclyde Innovation Fund marks a new era in the commercialisation of intellectual property. Strathclyde has one of the largest industrially-sponsored research portfolios for a university of it size anywhere in the UK and has in excess of 160 patents and licence agreements.
“We are delighted to be working with Braveheart in this new and innovative way.”
The Fund will work in two ways:
- Investment of equity into spin-out companies at the seed funding stage, and in subsequent funding rounds for companies in which the Fund has already invested
- Funding early stage loans direct to the University in return for a right to a share in future income resulting from the funding, or a right to equity in a future spin-out which is set up to commercialise the intellectual property
The Fund will have ‘first look’ at all investment opportunities from Strathclyde, and if the University decides to accept an investment offer from it, the deal will be concluded within three months. Braveheart will also pay 25 per cent of its fund manager’s performance bonus back to the University.
Source: University of Strathclyde
FUNDINGS
Mobile Internet phone enabler iSkoot raises $7 millionAnnounced in New York on 27 February, iSkoot Inc., a provider of software that enable Skype and other Internet calling platforms to run on cell phones, has raised $7 million (€5.3 million) in venture capital funding from a group of investors led by Charles River Ventures.
Three previous investors - Khosla Ventures, ZG Ventures, and Jesselson Capital Corp. - also took part in the new round of funding, which brings the total now raised by iSkoot to $13.2 million (€10 million).
ISkoot, based in Cambridge, Massachusetts, develops software for mobile phones that enables users to make calls over the handset’s wireless Internet connection just as they might on a high-speed DSL or cable modem connection at home.
Cell phone companies have been wary of such applications because they make money from connecting calls themselves, and they say such uses of their data connections may clog their networks.
But late last year, iSkoot scored a key deal with the European wireless carrier 3 Group to enable its cell phones to make Internet calls using eBay Inc.’s popular Skype service. The deal with 3, a unit of Hong Kong-based Hutchison Whampoa Ltd., marked the first carrier-authorized offering of a Skype-to-mobile service. The iSkoot software will come preloaded on certain phones, including Nokia and Sony Ericsson handsets.
Source: The Associated Press
Xtract raises € 2 million in venture capital funding from Eqvitec Technology Fund III
On 8 March in London, Xtract, the customer analytics expert, announced that € 2 million in growth capital funding has been secured in a first round of funding from one of the largest technology-focused funds in Northern Europe, Eqvitec Technology Fund III. A second round of growth funding is expected to be raised later in 2007.
Xtract is specialised in automated customer analytics solutions, enabling the analysis and prediction of events supporting targeted advertising in online communities and social networks. The funding will be used to further expand internationally, growing the customer base for the Xtract proprietary solutions, which include mobile advertising solutions to advertisers, as well as community and social networking analytics.
Juha Mikkola, Senior Partner of Eqvitec Partners says, “Xtract started selling its customer analytics and community analytics solutions less than 12 months ago and has already signed a great number of international operator contracts world-wide. The company offering is clearly unique, the business cases behind the solutions are obvious and the customer benefits are immediate. This funding, with planned additional funding later, will boost Xtract’s growth opportunities even further.
Jouko Ahvenainen, Chairman and founder of Xtract comments on the successful funding: “We are delighted by the confidence that Xtract has achieved. We are excited by the support we are getting to pursue our international footprint and the further development of our offering. We have been keen to work with Eqvitec Partners as they clearly have the experience and the competence to work with companies like us. We share the same understanding and vision for Xtract’s huge opportunities in social network analytics and mobile advertising solutions.”
Kimmo Kiviluoto, CEO and founder of Xtract, adds: “Our international growth is based on the growing demand of mobile advertising solutions and community analytics. Our unique competence, market-proven products and technology are currently opening new opportunities in the internet and mobile advertising space.”
Source: EQVITEC Partners Oy
Some Of The Other Deals This Year:
| Funded Company | Date | Amt ($m) | Round | |
| 1 | Trampoline Systems | 03/16/07 | 5.80 | Undisclosed |
| 2 | Atraverda Ltd. | 03/09/07 | 4.40 | First (addon) |
| 3 | Antenova Ltd. | 03/07/07 | 10.00 | Fourth |
| 4 | ip.access Ltd. | 02/13/07 | 10.00 | Undisclosed(add on) |
| 5 | Nujira Ltd. | 01/31/07 | 9.80 | Second |
| 6 | MarketClusters Ltd. | 01/31/07 | 3.00 | First |
| 7 | Cambridge Broadband Ltd. | 01/23/07 | 22.50 | Undisclosed |
| 8 | Workshare Inc. | 01/19/07 | 23.00 | Second |
| 9 | Mobango | 01/11/07 | 1.55 | First |
| 10 | Truphone | 01/10/07 | 24.50 | First |
| 11 | Optasia Medical Ltd. | 01/08/07 | 5.00 | Undisclosed |
| 12 | Plastic Logic Ltd. | 01/04/07 | 100.00 | Fourth |
Top VC Investors – Last 12 Months
| Intel Corp. | 51 deals |
| Draper Fisher Jurvetson | 40 deals |
| New Enterprise Associates | 34 deals |
| Sequoia Capital | 31 deals |
| 3i Group plc | 23 deals |
Hottest Industries: 1 Jan/06 - 19 March/07
| Industry | Fundings | Amt ($m) | Biggest ($m) | Avg ($m) | |
| 1 | IT | 675 | 7,684 | 150 | 11.38 |
| 2 | Life Sciences | 354 | 6,795 | 100 | 19.20 |
| 3 | Telecom | 142 | 1,850 | 65 | 13.03 |
| 4 | Consumer | 125 | 1,667 | 125 | 13.34 |
| 5 | Industrial | 89 | 1,416 | 120 | 15.90 |
| 6 | Other | 5 | 54 | 16.5 | 10.78 |
| Totals | 1390 | 19,466 | 150 | 14.00 |
Oxford Capital Partners appoints Richard Hepper
Announced on 6 March, Oxford Capital Partners, the Oxford based venture capital firm focused on science and technology companies, has appointed Richard Hepper as Finance Director.
Richard Hepper joins Oxford Capital Partners from Enterprise Ventures, a specialist early stage venture capital investor, where he held the role of Finance Director. Prior to Enterprise Ventures, he gained valuable technology investment experience with 3i plc and technology consulting experience with Arthur D Little.
‘We are delighted to welcome Richard to the team’ said Oxford Capital Partners Chief Executive Edward Mott. ‘He joins with a strong operational track record within the technology sector, which will strengthen further our growing team.’
Oxford Capital Partners is a science and technology venture capital firm with extensive experience in investing in and supporting businesses with high growth potential. The firm manages a series of four Oxford Gateway Funds and oversees a portfolio of over 25 companies in a range of technology sectors, including ICT, clean technologies, life and physical sciences.
Source: Oxford Capital Partners
Nova Science bought for $10m
Announced 12 March, Nova Science, a small Dublin medical devices firm, has been bought for about $10 million (€7.6million) by multinational firm Abbott. Industry sources said that the deal was completed in the last fortnight, netting a small return for Nova’s backers, including Trinity Venture Capital and ACT Venture Capital.
Source: The Sunday Business Post, 11 March
