Merseyside Special Investment Fund and Liverpool John Moores University launch new joint funding programme
20th May 2008
Liverpool John Moores University (LJMU) and Merseyside Special Investment Fund (MSIF) have joined forces to launch a new programme to help turn academic ideas into commercial businesses.
The partnership between the two organisations means that new financial backing is now available for LJMU projects, which show strong commercial potential.
The new joint Proof of Concept Funding Programme, due to be unveiled at a launch event on 20th May, will support the commercial development of leading-edge technologies emerging from LJMU extensive research portfolio.
Professor Michael Brown, LJMU’s Vice Chancellor said:
“The availability of finance to transform research into commercial applications is critical to having a successful knowledge economy. The new partnership with MSIF will enable us to establish new routes to commercialisation for our intellectual property through the creation of innovative spin out companies. This will have a real impact on our enterprise agenda, helping the University create sustainable high growth businesses that will boost the Merseyside economy and cement our position in the top 25% of UK universities for company creation.”
Mark Fuller, Managing Director of MSIF’s fund management company, said:
“This announcement is good news for the region. We are delighted to be partnering with LJMU in what we see as an exciting new era of development for both the University and MSIF. Relationships, trust and understanding of interests is critical to any successful partnership and both organisations have worked hard to establish a great foundation for a long-term future. There is no shortage of innovative talent in the region and this partnership represents a great opportunity for more early stage ideas and concepts to become a commercial reality.”
Up to £120,000 proof of concept funding will be available for each project, with a maximum of £100,000 being invested by MSIF and £20,000 by LJMU. This investment will be in the form of a loan to a new spin-out company, which will be set up for each successful project.
The funding will address a gap in the market for financing the early stage development of technology and new ideas, which are often seen as high risk investment propositions.
Chris Leyland, LJMU’s Deputy Director of Commercial and Enterprise Development, said:
“Thanks to our partnership with MSIF we will be able to fast track ideas and inventions out of the lab and into the commercial marketplace far quicker than had previously been possible. Each new spin out company will be set up based on full commercial principles. There will be clear advantages for all parties including our academics as they will become shareholders in the new company giving them a real incentive to make their companies a success.”
Funds will be allocated on a competitive basis, with all applications initially being assessed by LJMU’s Business Development Centre.
Applications are expected from across the University’s diverse research and enterprise portfolio, including digital technologies, medical and life sciences, and advanced engineering.
Only business ideas with an element of protectable intellectual property that will add real value to the region’s economy will be put forward to MSIF for consideration. As the venture capital experts, MSIF will make the final decision on which ideas receive financial backing.
Mark Fuller continued:
“We are looking to back great ideas with real potential in the real world. It is early days but the discussions we have already had with LJMU suggest that we can look forward to some very interesting opportunities in the next few months.”
The proof of concept funding will be used to test the capabilities of new technologies, develop prototypes, and carry out commercial assessments and detailed market analysis. It is not another source of research funding.
Successful projects will be subject to rigorous project management and budget controls and must meet well-defined outcomes and objectives based on their commercial potential.
Spin out companies which prove their commercial potential will have the advantage of the opportunity to access further funding and support from MSIF.
For further information contact Angela White at Merseyside Special Investment Fund on 0151 236 4040 or Angela.White@afm.uk.com
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Picture shows: l to r Malcolm Stewart (Liverpool Ventures) Professor Michael Brown (LJMU) Chris Leyland (LJMU) Mark Fuller (MSIF)