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Fusion IP PLC (FIP)

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Wednesday 31 July, 2013

Fusion IP PLC

New Investment MOU with Finance Wales

RNS Number : 5020K
Fusion IP PLC
31 July 2013

31 July 2013



("Fusion" or the "Company")


Fusion signs new investment MOU with Finance Wales


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, thanks to a new Memorandum of Understanding (MOU) between the two companies.


Following on from the successful MOU signed between the two companies in 2007, the new MOU details a co-investment strategy for investing in opportunities arising from Fusion's IP pipeline agreements with its Welsh universities.


Fusion IP 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 it signed an agreement with Swansea University.


Spin-outs from both universities will now benefit from the new MoU, which builds on the success of the previous MoU signed in 2007 to cover the Cardiff University spin-outs.


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 Asalus, Diurnal and MedaPhor alongside Fusion IP and other investors under the 2007 MoU.


Fusion IP'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 commercialisation opportunities. 


"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 IP are part of its growing portfolio of IP-rich, technology-based businesses, many of which are bringing new, disruptive technologies to market. 


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.





For further information please contact:


Fusion IP

David Baynes, CEO

+44 (0) 114 275 5555


Cenkos Securities plc

Elizabeth Bowman, Bobbie Hilliam (Corporate Finance)

+44 (0) 20 7397 8900

Julian Morse (Sales)


Media enquiries

Allerton Communications

+44 (0) 20 3137 2500

Peter Curtain


Finance Wales

Helen Walker-Smith

+44 (0) 29 2033 8149

[email protected]


About Fusion IP

Fusion IP plc (Fusion) was established in 2002 to commercialise university-generated intellectual property. It has long-term exclusive agreements with two of the UK's leading research-intensive universities, the University of Sheffield and Cardiff University, giving it exclusive access to all the IP generated by their research departments. These exclusive agreements enable Fusion to identify world class IP and turn it into a commercial opportunity, either through the creation of a start-up company or a licence.


Fusion IP currently owns shareholdings in over 20 portfolio companies, including significant shareholdings in Seren, Magnomatics, Phase Focus, MedaPhor, Asalus and Diurnal.


In 2012 Fusion IP announced its first major exit, when it sold its portfolio company Simcyp, a research-based business providing a modelling and simulation platform for predicting the fate of drugs in virtual populations, to US based Certara LP for $32 million, a 200 fold return on its original investment.


In April 2013 Fusion raised £20m through a placing to existing and new institutional shareholders and also announced that it had signed agreements with two additional universities - the University of Nottingham and Swansea University.


About Finance Wales


Finance Wales was established by the Welsh Government in 2001 and provides commercial funding to small and medium-sized businesses throughout Wales to enable them to realise their potential for innovation and growth. The company is part of the Finance Wales Group and in 2012 -13 Finance Wales invested £31 million through 189 debt and equity investments in growing Welsh businesses.

Finance Wales is currently investing a number of funds in more Welsh SMEs than ever:

§ The £150 million Wales JEREMIE Fund which aims to encourage effective investment in small and medium-sized businesses.  The Fund is backed by the European Regional Development Fund through the Welsh Government and the European Investment Bank under the European Commission's Joint European Resources for Micro to Medium Enterprises (JEREMIE) initiative.

§ The £40 million Wales SME Investment Fund which is backed by the Welsh Government and Barclays and invests in micro, small and medium-sized businesses.

§ The £6 million Welsh Government-backed Wales Micro-business Loan Fund.

§ The £10 million Wales Property Development Fund which makes loans to Small and medium-sized Welsh construction companies developing small-scale, non-speculative commercial and residential property.

The Finance Wales Group, one of the UK's largest SME investors, has invested over £256 million through more than 2,948 investments and manages funds approaching £400 million. 


This information is provided by RNS
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