IP Group unveils new venture capital fund

IP Group, the developer of intellectual property-based businesses, has established a 30m-pound venture capital fund, IP Venture Fund II, in partnership with the European Investment Fund (the EIF).

IP Group, the developer of intellectual property-based businesses, has established a 30m-pound venture capital fund, IP Venture Fund II, in partnership with the European Investment Fund (the EIF).

The group said that IP Venture Fund II would be expected to invest alongside IP Group in new spin-out companies from IP Group's university partnerships and other collaborations, with the EIF effectively investing alongside IP Group.

The fund comprises £30m of capital with a £20m contribution from the EIF and a £10m contribution from IP Group.

It is expected to co-invest with IP Group in such ratio that the effective investment ratio between IP Group and the EIF will be four:one when considering that IP Group will also directly provide capital to companies alongside the fund, the group added.

Alan Aubrey, Chief Executive Officer of IP Group, said: "We are delighted to have agreed a second fund with the EIF; a key partner for the group who share a similar view on the importance of providing long-term patient capital to intellectual property commercialisation."

Piyush Unalkat, Principal of Equity Investments at the EIF, said: "We have been working with IP Group since 2006 and have been impressed by the group's ability to build valuable companies from the best of British intellectual property and evidence returns to co-investors and shareholders. We look forward to creating the next generation of spin-outs with the new Fund."

IP Group's share price was down 2.44% to 136.10p at 09:32 on Thursday.

MF

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Nuclear power might never be popular – but now looks a good time to invest
Commodities

Nuclear power might never be popular – but now looks a good time to invest

Nuclear power gets a very bad press, but it is the ultimate renewable energy source. Interest in it is perking up again, says John Stepek. Which means…
9 Apr 2021
House prices: from boom to even bigger boom
House prices

House prices: from boom to even bigger boom

UK house prices have risen to new to record highs, says Nicole Garcia Merida. Demand continues to outpace supply, but continued low interest rates, th…
9 Apr 2021