Fusion IP, the Sheffield-based university spin-out specialist, is gearing up to launch another three hi-tech companies and raise cash to fund the expansion of up to eight more in its existing portfolio.
Chief executive David Baynes said: “We are hoping to do a further three (launches) this year and we are bringing quite decent amounts of money into the Sheffield area, for relatively early stage companies.”
One recent deal involving research at Sheffield University has the potential to bring in £1 million in royalties each year.
“At peak sales, the revenue generated from this single agreement could cover most of Fusion’s net annual overheads and is a great example of the value within our pipeline,” says Mr Baynes, writing in Fusion IP’s interim report for the six months to the end of January.
Details of the deal are being kept under wraps for commercial reasons.
Recent successes for Sheffield-based businesses backed by Fusion include:
n The sale of Simcyp to leading US-based drug discovery and development software group Certara for more than £20 million.
n A collaboration agreement that will result in high brightness LEDs, developed by cutting edge lighting technology company Seren Photonics, being used in India.
n The signing of more than 15 development contracts with major, global companies by Magnomatics, the Bernard Road-based developer of hi-tech magnetic transmission systems and electric motors.
Fusion IP reported a loss from operating activities of £1.7 million for the six months to the end of January, compared with £400,000 for the same period in 2011.
The company says revenues are largely determined by changes in the value of its portfolio of companies, resulting from fund raising. With more companies expected to seek additional funding in the second half of the year, Fusion IP expects that position to change.