An explanation of the Warrant
By taking a Warrant over a small number
of shares on a number of early stage
companies, the University has the potential
to benefit from the most successful
start-ups in order to continue to fund
early stage investment in its innovator led
start-up companies. This is done through
what is known as a Warrant Instrument.
In exchange for receiving support and
services from UMI
3
(acting on behalf of the
University), the start-up will be required to
sign a warrant in favour of the University.
The University does not actually receive any
shares in the company at that time - it is
simply an option to acquire shares that the
University can exercise in the future.
The warrant instrument gives the University
the option to acquire a shareholding in the
start-up company immediately prior to an
Exit Event occurring, so that the University
would benefit from the exit event as a
shareholder, thus obtaining part of the
sale proceeds.
INNOVATION OPTIMISER - SHARING IN
SUCCESS CONDITIONS
This will be determined by the individual
business case and is at the discretion of
UMI
3
(acting on behalf of the University).
Independent legal advice will be accessible
through Innovation Optimiser or you are at
liberty to seek your own legal advice prior
to agreeing the warrant.
Intellectual Property
It is likely some start-ups will be founded
on University Intellectual Property. The
need to access relevant IP for your start-up
will be a key consideration in developing
the business case. If the start-up requires
IP belonging to the University, or involving
third parties such as Research Councils,
then it must consider these matters along
with any actions that present a potential
conflict of interest.
Please refer to the University's Policy on
Outside Work and Consultancy for
more details.
At all times we will look to make this
process as seamless as possible and in line
with the University's standard IP policy.
Business Start-up
2% Warrant
Social Enterprise
1% of net turnover
Business Start-up requiring access to UoM IP
4% Warrant
Social Enterprise requiring access to UoM IP
2% of net turnover
The rate of return for the University is as follows;
19
