Investing in Spin-outs from Oxford

9th August 2012

Oxford University Innovation Ltd is responsible for managing the formation of new spin-out companies from the University of Oxford with the academic founders, on behalf of the University of Oxford.

Initial investment in new spin-outs

Isis is responsible for raising the first round of investment into these companies.  In the last ten years Isis has helped create 57 new spin-outs from Oxford, raising combined first rounds of £38m.  In recent years first round investments have typically been in the region of £1m.

Isis manages the Oxford University Challenge Seed Fund, the Oxford Invention Fund and the Isis Angels Network.  These are the sources of funding which can go into the first round investments.

Isis is always interested in engaging with any individuals or organisation interested in investing in early stage technology start-ups.  As a matter of principle, we believe it is very important that all investors have the same opportunities to invest, and that investments are made by willing and appropriate investors into companies wishing to engage with those investors.

With the exception of Oxford’s ground-breaking deals with IP Group and Technikos, no other company is involved in this company formation stage.  There exist other companies that help in the initial stages of spin-out formation from other universities; this is not the case in Oxford.

The well-recognised success of spinning-out companies from Oxford is built upon the strengths of the Oxford Isis approach, infrastructure, and its people, and there is no intention to change this.

Post first round Spin-out investment

After the companies have been spun-out by Isis with their first round of investment, core management, initial business plan and most often technology licensed in from Isis, the University of Oxford has a shareholding which is managed by a team in the University’s Finance Division, Oxford Spin-out Equity Management.  OSEM supports the companies in a number of ways, including in raising further investment finance and, when deemed appropriate, by investing money on behalf of the University itself, with a view to adding value to the overall equity portfolio held by the University.

Once companies have been set-up they are independent entities, controlled and managed by their shareholders and boards, and OSEM plays a role in supporting their growth.  The companies may of course choose to engage with a variety of other organisations to help their ongoing development.

For further information, please contact us.

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