Finance

Source of Finance for Biotech and MedTech Companies

OBN's research into the life sciences sector in Oxfordshire includes identifying the sources of finance for all private equity financed companies in the county, the results of which will be published in the 2008 Cluster Report.

Some services charge a presentation (typically £200-£500) and success fee (typically 2.5-7.0% of the amount raised).

OBN brokers meetings between its member companies and VC's from time-to-time, generally for companies seeking £1m-£10m, but does not charge Full Members for this service, although Associates and non-members will incur an admin fee of £150 and £250 respectively. Submit your (non-confidential) business plan for consideration: jon.rees@obn.org.uk

Below is a list of some regional sources of finance, particularly relevant to Oxford and South-East (SEEDA) region.

SEEDA R&D Grants  - Grants of 35-60% of project costs from £5k-£500k are available for exceptional technology, development of technology, research into or critical investigation of new technology or prototype innovation. The region's life sciences companies have secured grants totalling nearly £1m in some years.

SEEDA Grants for Business Investment  - For small enterprises (less than 50 group employees), it is possible to claim up to 20% of eligible project costs, with a maximum grant of £2.5 million. For SMEs (less than 250 group employees), it is possible to claim up to 10% of eligible project costs, with a maximum grant of £1.25m. Eligible costs are equipment and machinery, building refurbishment, fit-out and new build costs, new lease or mortgage interest costs for the project period + 3 years for SMEs or 5 years for large enterprise, some intangible assets may also be eligible, or 2 years wage costs of some key, skilled jobs created directly as a result of the project.

Finance South East This finance advisory service aims to support the sustainable growth of businesses in the South East including companies whose main activities are biotechnology or healthcare technologies, offering a fully integrated service to help companies access suitable finance, to get sector specific advice on business development and locate any financial and regulatory advice that might be needed. Call Finance South East's on 01276 608510.

OION - Oxford Investment Opportunity Network - OION helps innovative early stage technology companies raise equity finance through introductions to our business angel and institutional investor members, the majority of its successes are life science companies including Evotec OAI, Glide Pharma, Astron Clinica, Armstrong, Phico Therapeutics, Scancell, Orthogem, BioAnaLab, Cybersense Biosystems, Cytocell and BioEx, Imprint Pharmaceuticals, and Oxonica. Call Eileen Modral on 01865 811143

GEIF - Great Eastern Investment Forum - GEIF is Cambridge's equivalent of the OION angel network, and includes in its portfolio Atlas Genetics, Altacor Ltd, Chameleon BioSurfaces, Quotient Diagnostics, Novacta Biosystems, DanioLabs, Orthos, Tissuomics, and Oxford based g-Nostics.

Oxford Early Investments (OEI) - OEI is a business angel network that focuses on companies at the very early stages of technical and commercial development, requiring investment capital of between £20,000 and £150,000 to develop their product beyond an 'proof of concept'.

Beer and Partners is the leading source of venture capital and business angel investment for growing SME businesses in the UK. Recent activity has included healthcare and life sciences companies.

CommercialiSE Proof of Concept Fund - The CommercialiSE Proof of Concept Fund provides funds for early stage business ideas and is specifically for 'proof of concept' development.

CommercialiSE Seed Fund - The purpose of the CommercialiSE Seed Fund is to provide private equity investment up to a maximum of £250,000 to support early stage companies in the South East area.

Oxford Capital Partners - Oxford Capital Partners is a venture capital firm working on behalf of institutional and private investors, focusing is on emerging science and technology, manages a portfolio of companies in a range of technology sectors, including 7 healthcare and related life sciences companies.

East Hill Management - East Hill (US-based) has invested to 10 UK-based life sciences companies, including Domantis, Glycoform, Oxford Biosensors, Oxitec, Oxxon Therapeutics, Prolysis, ReOx, Surface Therapeutics, ThromboGenics, and Zyentia.  It is notable that 70% of their life sciences portfolio originates in Oxford.

South East Growth Fund - The South East Growth Fund (SEGF) is a £30m venture capital fund committed to investing in fast growing small and medium enterprises (SMEs) in South East England, including life sciences companies.  SEGF has invested in a number of life science companies including BioAnaLab, Oxford Genome Sciences and Synermed.

Seed Capital Ltd - Oxford Technology Venture Capital Trusts - The four Oxford Technology Venture Capital Trusts are managed by Oxford Technology Management and provide start up capital of £100k to £500k for early stage technology companies. We seek to be actively involved to help companies in their early phases of growth. Similar amounts of follow on capital can also be provided.

 H2O Venture Partners - H2O is an Oxford-based organisation which commercialises early stage technologies from premier universities, research organisations and existing companies, working with founder inventors to establish companies and build value. H2O invests seed capital and high-level resources at the critical early stage to bring companies as close to the market as possible before raising further finance to deliver those markets.

Technology Transfer at the Wellcome Trust is a committed funder of translational research. Helping to bridge the gap between fundamental research and commercial application, it supports academic researchers and companies by funding product development and new discoveries. Through Translation Awards, Technology Transfer funds applied research projects at an early stage where there is an unmet medical need, a potential new solution and a realistic expectation that the innovation will be developed further by the market. Translation Awards are open to researchers from both academic institutions and early-stage companies.

Other funding sources for Oxfordshire-based biotech companies have included:
Quester Capital Management, IP Group, Abingworth Management, Advent Venture Partners, Evolution Securities, Schroder Ventures Life Sciences, Gilde Investment Management, Essex Woodlands Health Ventures, Oxford Bioscience Partners, MPM Capital LP, Red Abbey Venture Partners, 3i Group, IBT Ventures, Bessemer Venture Partners, Esprit Capital, Top Technology Ventures, Inventages Ventures Capital Investments, University of Oxford Isis College Funds, Trivest VCT, Foresight Venture Partners, BASF Venture Capital, Fujisawa Investments for Entrepreneurship, Octopus Asset Management, Nova Capital Management, Nomura International, and the Wellcome Trust.