New agreement will see more co-investment in Welsh university spin-outs
More high-tech Welsh university spin-outs are set to benefit
from co-investment from Finance Wales and the university
commercialisation company, Fusion IP plc (Fusion) thanks to a new
Memorandum of Understanding (MoU) between the two companies.
Fusion has agreements with leading research-led universities in
the UK to identify and commercialise emerging intellectual property
(IP). In Wales, it signed an agreement with Cardiff
University in 2007 and in April 2013 signed an agreement with
Spin-outs from both universities will now benefit from the new
MoU, which builds on the success of the previous MoU signed in 2007
covering Cardiff University spin-outs.
The new MoU agrees a strategy for co-investing in opportunities
resulting from Fusion’s agreements with both Welsh
Welcoming the MoU, Steve Smith, Finance Wales’ Director of
Technology Venture investments, said:
“Fusion IP is spearheading the commercialisation of some
excellent IP from Cardiff and Swansea universities. Finance
Wales has already co-invested in a number of Welsh spin-outs thanks
to the MoU we signed in 2007 and we’re pleased that even more Welsh
spin-outs could benefit from our new agreement.
“Young technology ventures can often require a number of funding
rounds before they become commercially viable and the availability
of seed and series A capital is limited at the moment. Having
the backing of long-term investors with capital to invest over a
number of rounds can make all the difference.”
Finance Wales has invested £6 million in six Cardiff-based
Fusion spin-outs, including Alesi Surgical (formerly known as
Asalus), Diurnal and MedaPhor alongside Fusion IP and other
investors under the 2007 MoU.
Fusion’s CEO, David Baynes, is excited about the potential
opportunities the new agreement will offer:
“We’re ambitious to create successful businesses from the
world-class IP created at the universities we work with. Both
Cardiff and Swansea University have a number of excellent research
departments with an interesting pipeline of potential
“We have strong relationship with Finance Wales and together
we’ve already been able to back Cardiff-based spin-outs with
exciting potential. With the addition of Swansea University
as a partner university and the renewed MoU with Finance Wales,
we’re looking forward to announcing our new co-investments
Finance Wales’ co-investments with Fusion are part of its
growing portfolio of IP-rich, technology-based businesses, many of
which are bringing new, disruptive technologies to
A leading UK technology ventures investor, Finance Wales
invested seed and growth capital totalling £9 million in
high-growth, IP-rich Welsh technology-based businesses in the
2012-13 financial year.
The availability of investment capital from Finance Wales has
been pivotal in attracting a number of high-growth technology
ventures such as Clinithink and Creo Medical to Wales.
Finance Wales invests in high-growth spin-outs and technology
ventures from the Wales JEREMIE Fund.