Oxford lures tax efficient spin-out investment with creation of new fund.
Oxford is looking to seduce potential investors into making tax efficient investments into the university’s spin-outs with the creation of the University of Oxford Isis Fund.
The hybrid Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) fund was set up by Oxford’s commercialisation arm Isis Innovation and Parkwalk Advisors, which manages 9 EIS funds, including two with Cambridge’s tech transfer unit Cambridge Enterprise.
The fund will offer investors considerable upfront income tax relief as well as capital gains tax free gains and other tax perks, and has a minimum subscription of £25,000. Investors will also have the opportunity to come in early on Oxford’s portfolio spin-outs, which have led to numerous successful firms. Notable recent examples include gaming company Naturalmotion, which was acquired by gaming peer Zynga for $527m, and life sciences firm Oxford Immunotec which held an initial public offering last year with $64m.
The fund plans to invest in firms from across the entire technology spectrum and based on university intellectual property. It’ll also be looking to include Oxford-based software firms in its portfolio.
Parkwalk’s Moray Wright said: “We are delighted to be working with Isis Innovation to offer alumni and friends of the University the opportunity to participate in the exciting opportunities emanating from Oxford University.”
Tom Hockaday, Isis managing director, added: “The University of Oxford Isis Fund will provide University inventors and entrepreneurs with vital early investment, and investors with the opportunity to invest in a range of new companies as they spin out from the University, via a dedicated fund.”
