ENTERPRISING SPIRIT
A new University investment arm is set to help start-ups and spin-outs to move to the next level
High value
Historically, early-stage investment in Scotland has been dominated by founder-investors and business angels. This has served Scotland’s companies well, with many benefiting from the experience and hands-on input that typically accompanies such investments.
And while many of the University’s spin-outs and start-ups continue to develop genuinely valuable relationships with business angels, others now look outside Scotland for more substantial sums to seed their global ambitions. The University now aims to assist those companies by actively investing alongside venture capital funds in a manner that looks set to provide spin-off benefits to the wider economy.
venture capital funds or professional investors. Old College Capital will seek to invest a total fund of up to £2 million, making available amounts of £100,000 to £400,000 for spin-outs with very high growth potential.
In 2010, Edinburgh Research and Innovation convened its Equity Management Group, recruiting high-profile members from the investment community in Edinburgh. This group considered a new approach to investment in the University’s new companies and looked to effect significant structural change in the Scottish investment scene by attracting institutional investment. One result has been the creation of a new investment arm to provide crucial funding for the University’s leading spin-outs and start-ups. Old College Capital, a limited partnership, will make mid- and late-stage venture investments into companies as they grow and develop. Investments will be made as part of large deals involving
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investments into companies as they grow and develop”
“Old College Capital will make mid- and late-stage
Old College Capital made its first investment of £200,000 into NGenTec, a spin-out from the University’s School of Engineering, which is developing an efficient generator system for use in large wind turbines.
The company also received a £2 million investment from a Dutch venture capital fund and Scottish Enterprise’s Scottish Co- investment Fund. NGenTec also established an industrial partnership with global gearing company David Brown Gear Systems. At the launch of the scheme, the University’s Principal, Professor Sir Timothy O’Shea, said: “This is a very significant step for the University as we seek to build on the highly successful commercialisation of our research activity.” Hamish Mair, Head of Private Equity at F&C Investments and an alumnus of the University, has been appointed to chair Old College Capital’s investment committee. He said: “This has the potential to grow
into something substantial for the University and the wider economy.” In September 2011, Andrea Young, known for her work with the Scottish Co-Investment Fund, was appointed as investment and portfolio manager of Old College Capital.
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