Issue link: https://htpgraphics.uberflip.com/i/108176
INTELLECTUAL PROPERTY COMMERCIALISATION DIVISION www.umip.com UMIP Premier Fund Update... OUR SEED FUND RUNNING SINCE MARCH 2008 In the last six months more UPF portfolio companies have secured substantial further investment both from the UPF and from other investors. Bioxydyn (lung imaging) secured £1M, Cable Sense (cable management) secured £800K and one of our external investments Eykona also secured a significant sum. It is now the case that every single one of our investments has secured investment from additional investors. This is important for two reasons. The first is obvious, the money, but the second is equally important. The second reason is validation. Venture Capital, like many other professions such as medical or military, involves making decisions based on incomplete information. Whilst it might be possible to be sure that a product will work, it is never possible to be sure that there will be a market for it. It is never possible to be sure that the business model is right or the financial model is right. These judgment calls are sometimes quite subjective early in the life of a technology company and it is important to us to know that other investors agree with them and back that judgment up with further capital. That has now happened in every investment we have made. Another forum for the validation of our judgment is the labour market. Senior executives when they join a business make their judgment on viability as they want to avoid being associated with a failed business. Most of our portfolio companies have made a recruitment at board level in the last six months. Unfortunately, the investment phase of the UPF finishes in March 2013. After that the UPF can still make additional investments in existing portfolio companies, but cannot add any new ones to the portfolio. This is the normal business cycle for a VC fund manager and UPF's manager, MTI, is now fundraising for the successor to the UPF. This is a significant challenge in a difficult market, but what we do is exactly in the centre of the UK's economic strategy – supporting innovators to create jobs, wealth and growth. Mark Rahn Investment Manager MTI Partners (Managers of the UMIP Premier Fund) That strategy was further strengthened by many measures in the Chancellor's autumn statement, in particular the consultation on ISAs investing on AIM that could bring much needed liquidity to the market. www.theupf.com 4 Please click here to view UMIP's Portfolio of Technologies