Swansea University have agreed a Memorandum of Understanding with Fusion IP plc (AIM: FIP), the university Intellectual Property (IP) commercialisation company, which allows Swansea University to offer University owned intellectual property to Fusion IP as potential investment opportunities.
IP will be offered on a non exclusive basis where the key terms will be:
- 5 years initial term
- Fusion IP to evaluate and work-up project opportunities
- Fusion IP receives 10% on incorporation of project into a start-up company
- Fusion IP has the first right to invest 50% of first funding at a pre-money valuation of £500,000
- If a project fails to become part of a startup company and is subsequently licensed, Fusion IP will be reimbursed their costs out of the license fee and 10% of any additional licensing revenues
Dr Gerry Ronan, Managing Director of Swansea Innovations Ltd., Swansea University's wholly owned IP commercialisation company said, "This is a splendid opportunity for Swansea University to access private finance to translate it's IP Pipeline into the commercial arena. I believe the non-exclusive relationship will work to the mutual benefit of both parties and am truly delighted to be working with David and the rest of his team in Fusion IP."
Fusion IP has also completed a Placing on the Alternative Investment Market (AIM) to raise approximately £20m to support this and other University engagements.
Commenting on the Placing, David Baynes, Chief Executive Officer of Fusion, said:“We are very pleased to announce this significant additional investment in the company, in a funding round which includes all our current institutional shareholders, as well as adding a number of new institutions. Combined with our new university agreements, this is clearly a significant advance for Fusion. We are also delighted to be expanding our operation in Wales, with the addition of Swansea University into the portfolio.
“We remain fully committed to the commercialisation of IP that is generated out of the UK’s leading universities and believe we are now well placed to further increase our pipeline of companies and to maximize the potential returns from our increasingly mature portfolio.”
- Wednesday 3 April 2013 12.02 BST
- Tuesday 26 March 2013 16.54 GMT
- Swansea University