CLIMATE CHALLENGE - Isis Innovation

Portfolio newsInvesting in Oxford University spin-outsOSEM – Oxford Spin-out Equity ManagementOxford University’s commitmentto technology transfer is wellknown, and Isis Innovation whichmanages such activity is oneof Europe’s leading technologytransfer vehicles. The Universityis now taking steps to ensure thatits shareholdings in companieswhich are established aresupported from within itsorganisation. Oxford Spin-outEquity Management (OSEM)Dr Chris Towler, Director, OSEMwas established in August 2008to manage the University’s interests in its spin-out companiesand seek ways of maximising the value of its equity stakes.OSEM is a unit of the University, with a direct reporting lineto the Director of Finance, although it works closely with Isis.OSEM’s role in managing interests within the portfolio ofestablished spin-out companies starts after seed-funding hasbeen secured and the initial company management teamestablished. OSEM thereafter maintains relationships withthe developing companies to support their commercialisationobjectives and assess opportunities for further investment bythe University. To this end, OSEM manages an investmentfund, which currently stands at around £2.5 million.While OSEM is likely to remain a small unit, its two Executives,Dr Chris Towler and James Mallinson, have considerableexperience in the industrial, financial and higher educationsectors. With the recent appointment of an assistant, theOSEM team aims to provide an effective and well-informedconduit between the University and the companies in whichit holds shares.The portfolio of established spin-outs comprises 47companies, a large percentage of which operate in thehealthcare / medical arena. However, almost all aspects ofthe university’s rich research programme are represented.Products of engineering sciences, software innovation andapplications relevant to the environment and industrialprocesses are all present.In this edition of Isis News, we have chosen to highlight twocompanies which have made exciting progress in recentmonths and which exemplify the overall objectives of Oxford’stechnology transfer ambitions. Looking at the existingportfolio and the pipeline of emerging commercialisationopportunities, we are confident that there will be noshortage of interesting developments to report in futureeditions of Isis News.Ways in which OSEM adds value:Working with company boards to deliver consents andsupport and participate in development of strategies,including exitUsing its own networks to create access to funding orpeopleUsing its experience to challenge management teams toaddress issues and risksAppointing University-nominated DirectorInvesting on behalf of Oxford UniversityRealising assets for University (e.g. sales of shares;negotiations of exits)OSEM was established to manage the University’s interestsin its spin-out companies and seek ways of maximising thevalue of its equity stakescontactDr Chris TowlerDirector, OSEMT 01865 280918E chris.towler@isis.ox.ac.uk20