Cambridge, Europe’s largest tech cluster, has announced a new initiative with £50m ($80m) backing to support the development of the University’s startup and spin-out companies.
Cambridge Innovation Capital (CIC) will invest long-term equity finance in the institution’s many technology firms with a keen eye to assist companies across the funding pitfall after research opts to go down the commercialisation route known as the ‘valley of death’.
CIC plans to invest across a broad spectrum of technology firms at all stages of development, and will allow for in excess of a decade for investments to reach maturity.
The main investors in CIC’s fundraising are alternative investor Lansdowne Partners and Invesco, the leading shareholder in Imperial College London’s commercialisation arm Imperial Innovations. Other backers include technology commercialisation firm the IP Group, the University of Cambridge Endowment Fund, and semiconductor designer ARM, the largest of Cambridge’s spin-outs and one of two to be valued at over £10bn.
In addition, the CIC will receive additional support through the University’s tech transfer unit Cambridge Enterprise, and will see the commercialisation office’s chief executive Tony Raven sit on CIC’s board of directors. Joining him will be ARM co-founder and chief technology officer Mike Muller, and the board will be chaired by Edward Benthall, a former partner at Charterhouse Capital.
Benthall said: “Many good companies have to spend too much time fundraising, leaving them with less time to focus on running their business. CIC will work with angel and other long term investors to bring innovative technologies to market and help build world-class businesses.”
Sir Leszek Borysiewicz, vice-chancellor of the University of Cambridge, added: “The University benefits society through the pursuit, dissemination, and application of knowledge. With the launch of CIC, the University and our co-investors are taking an important step in supporting the continued economic growth of the region and the country.”
