Presentation given to VINNOVA visit, November 2012

1. UMI3 Ltd
The University of Manchester Innovation Group
Rich Ferrie PhD
Director of IP Commercialisation
Head of UMIP Division

2. Presentation Overview
• UMI3 Ltd – its role and organisation
• The University of Manchester approach to
IP commercialisation
• UMIP Division
• Proof-of-principle funding
• UMIP Premier Fund
• Track record

3. Company Structure
UMI3 Ltd
The Innovation Group of The
University of Manchester
Clive Rowland
UMIP Division UMIC Division
Intellectual Property Innovation Centre
Rich Ferrie Yvonne Loughlin

4. IPR Commercialisation
• University owns IPR from academic research
• University’s IPR policy is progressive and designed to
incentivise
• UMIP Division is the University’s sole agent for
commercialising IPR
• UMIP Finances Proof-of-Principle Funding
• UMIP Premier Fund (£32M) is the largest venture
fund linked to a single University in Europe

5. UMIP Overview
• Identifies, protects and commercialises IPR
• Organised into BioMedica and Technologies Teams
• Inward interface - Commercialisation Executives
• Outward interface - Venture Managers and Licensing
Managers
• Commercialisation typically via spin-out, partnering
and licencing

6. Operational mode
• Secure invention disclosures from Faculties
• Rapid evaluation of ideas and inventions for
commercial potential
• Ensure a consistent, robust and high quality decision
making process across UMIP
• Select and prioritise ideas and inventions with
commercial potential for active
• Secure PoP/create NewCos/secure
investment/license out

7. Context
Proof of Seedcorn Series A
Principle Investment Finance
(PoP)
PROJECT COMPANY
Screening & £75K £250K £1M
Selection
UMIP/UPF
Investment UPF UPF
Committee
Corporate Seedcorn &/or
Partners Investors Syndication

8. Proof-of-Principle Funding
• UMIP engages early in the innovation process
• IP is initially raw, poorly exemplified, and is of
low value
• High level of inherent technical risk confounds
spinning out or licensing
• Intervention through providing development
capital is essential

9. POP Selection Criteria
• IPR addresses unmet market needs
• Project has significant commercial potential and clear
route to market
• Base IPR is too immature for immediate licence or
investment
• 6-12 month project addresses key technical risks
• Project bolsters IPR position
• Project enables downstream development
• Academic committed to project
• Average amount of cash provided is GBP75,000

10. Total Investment in the PoP Scheme
• £9.59M has been invested in the scheme
• £4.15M has been invested in 43 spin-out
projects
– Average award per spin out project is £96.6K
• £5.44M has been invested in 81 licensing
development projects
– Average award per licensing project is £67.1K

11. Leveraged Cash
• Further development capital from either
investment, grant or charitable sources
• £73.8M has been invested in University PoP
spin-out projects
• £14.5M of has been secured by University PoP
licensing projects
• £88.3M has been leveraged by the PoP activity
overall

12. Facts & Figures – Annual Performance
• Invention Disclosures 300
• Value of External Investments c£50M
• No. of External Investments 10
• Sales of Shares c£6M
• Licence Income £1M
• Number of Licences >40

13. UMIP Premier Fund
• £32M limited partnership
• 5 year invest/5 year realisation
• 50 Proof-of-Principle projects
• 20-25 spin-outs
• Positioned as late seedcorn
• Managed by MTI Partners
• Offices in Watford and Boston, MA

14. Investment Preferences
• IT
• Smart materials
• Medical Technology
• >80% UoM – up to 20% elsewhere

15. Valuation
Investment Context
Business
Market
Market to
Ready
Investor Money
Ready
Product
Proof to
Market
Technology
to
Product
Proof
of
Market
PoP
IPO /
Sustainable
Project Seed Late Seed Classic Venture Development Capital
Business
0
£75K £250K £750K £2M + £10M + Investment
© - MTI Partners - UMIP, 2006/2007

16. UMIP Venture Pipeline
PoP Phase Early Stage/Seed Development Exit
Stratastem
Hexrotor Arago F2G
Biomaterials Myconostica
Nano ePrint Phagenesis
PharmaKure Renephra Conformetrix Nanoco
IF sensing Cablesense Arvia Renovo
Energy Harvesting Multisensor Systems Ai2 Transitive
VaxCo Bioxydyn Motac Neutec Pharma
Gelexir Oncoprobe
Curapel
Breath
ViBio
Diagnostics

17. Rich Ferrie
rich.ferrie@umip.com
Tel +44-161-606-7216
Skype richferrie