Cambridge Consultants sets up in-house venture capital fund for new spin outs
Cambridge Consultants, one of the catalysts that kicked started the Cambridge high tech Cluster, said today it plans to reactivate its spin-out business with the creation of a new venture fund.
The fund will be created jointly by Cambridge Consultants and an investment partner with the aim of having it up and running by summer. The company said several blue-chip investors have shown interest and that detailed negotiations were underway.
The fund will invest exclusively in its own new ventures and will allow the firm to "re-energise" its activity in this area in a controlled fashion, the company said.
It aims to produce one spin-out every two years on average.
Ventures Director Ray Edgson, said that “we learnt a great deal about creating new ventures in the late 90’s and early part of this decade, including the effects that creating spin-outs have on a business of our size. Venturing can be a very disruptive process, however, we believe that by taking a controlled approach … we can bring significant benefit to our clients, our staff and our business
"At the same time we are able to generate significant return on investment.
“Clients value the fact that our business model is more than just fee-for-service, as it proves beyond doubt that we have the skills to successfully turn innovation into tangible value both for them and for ourselves. Creating spin-out companies is also a significant factor in helping us to attract top-flight engineers who want the benefits of a structured career path, coupled with the opportunity to be truly entrepreneurial.”
Its first new venture is expected to appear in 2007. Candidates for the next batch of ventures are expected to come from a range of Cambridge Consultants’ core markets, including wireless technologies, drug delivery, diagnostics, radar and electronics.
The company has a track record of creating and developing start-up companies. It has created over 20 new ventures in the past 25 years, several of which have gone on to achieve listing on the London Stock Exchange, including Domino, Xaar, Prelude Trust and CSR. Other successful spin-offs include Alphamosaic and Inca, who have subsequently been acquired by Broadcom for $123m and Dainippon Screen for Euro 43.8m, respectively.
28th March 2006
