Australia's first university based Venture Capital Fund -- to be known as UniSeed -- was launched today with an initial capitalisation of $20 million.
UniSeed Pty Ltd will create and facilitate a family of funds in a joint equity and management venture between Melbourne Enterprises International (MEI) and UniQuest Pty Ltd, the respective commercialisation arms of the Universities of Melbourne and Queensland.
The $20 million UniSeed Fund will be the first of two funds and is financed entirely from commercial activities of MEI Limited and UniQuest.
UniSeed will invest in promising technologies, projects and ventures at their earliest stage from the Universities of Melbourne and Queensland covering IT&T, the Internet, multi-media, biotechnology, health sciences, medical instruments and equipment, electronics, new materials, engineering, agriculture, mining and other technology sectors.
Investments will be selected on the basis of their potential to be the foundation for successful high growth, world class technology businesses.
Fund Two will be a $60-$100 million follow-on Early Stage Fund that will invest at a phase that is still earlier than most existing venture capital funds in Australia.
Fund 2 will be financed from private and institutional markets, with no direct relationship to either University.
It will have the capability to take a venture from the earliest idea and pre-seed stage, to the public markets and other exits.
Mr David Evans who has left his MD position at UniQuest to lead UniSeed, said, "In an Australian first, UniSeed will bridge the gap between raw outcomes of Australian research being fostered at our universities and venture capital and related investment.
"By combining our considerable resources we will create a catchment of sufficient magnitude to generate well-packaged deal flow that will be recognised as readily investible by the broader investment community.
"We are confident our investment strategies will support a balanced portfolio of good investments, increasing the probability of investing in one or more "blockbusters" by transforming great ideas into global businesses."
Under the joint venture, UniSeed will have access to two of Australia's largest and highest quality research catchments at the University of Melbourne and University of Queensland.
This combined catchment represents annual investment in research exceeding $300 million and will provide a rich and diverse source of investments for the Fund.
"UniSeed will have a multi-sector investment focus covering the areas of science, technology and engineering that are most vital for the development of new, knowledge-based industries in Australia, on which the nation's future depends.
The spread across sectors will also help manage investment risk, by making the Funds less vulnerable to downturns in any one sector", said Mr Evans.
UniSeed will work in commercial partnership, with each of MEI and UniQuest, to identify, to add value and package research-based ventures from the earliest stage.
It will filter through a large number of venture candidates and invest in only those projects that have the greatest commercial potential and are most suited to advancing along venture-investment type commercial pathways.
Prospective investments will typically be pre-revenue, which require funding to consolidate the commercial potential of the venture.
UniSeed funds will be used for activities such as Prototype development, Business planning and initial market research, Developing commercial relationships and Recruiting key staff.
Only those successful investments in UniSeed will progress through to Fund No 2, for further enhancement to be taken to exit stage.
Mr David Lloyd, MD of MEI, said, 'Australia's first University-led venture capital fund represents a breakthrough in two universities collaborating to commercialise business opportunities arising from intellectual property (IP) developed within the tertiary sector.
"This announcement represents a milestone in Australia's efforts to advance technology-based innovation and to successfully compete in the global information economy.
'By combining our efforts and investment, MEI and UniQuest will create an investment fund structure that is more attractive to the capital markets, and one that brings increased deal flow and synergies created by critical mass and complementary skills.'
Mr. David Henderson, MD of UniQuest and successor to outgoing MD Mr David Evans, said, "MEI and Uniquest are uniquely placed to act as an interface between the research and academic communities and the investment community.
We can combine our understanding of university culture with the commercial acumen that will allow us put deals together for the investment community.
"Combining the skills, experience and resources of MEI and UniQuest, will produce a networked organisation with the largest and most competent group of professional analysts and early stage venture managers in Australia.
This group has the special competencies to identify and protect new intellectual property at the earliest stages, to add value to this IP and package it ready for later-stage investment".
UniSeed's independent chairman Mr David Miles and Chairman of the National Innovation Summit Implementation Group, said, "UniSeed is a logical follow-on from the National Innovation Summit.
It will play a crucial role in instilling a culture that sees our universities striving to meet the challenges of transforming great ideas into global business."
"The Universities of Melbourne and the University of Queensland should be commended for being at the forefront of Australian Universities for forging a link between academia and business that focuses on the commercialisation of innovative ideas and inventions for global consumption.
"By making commercial funding and management assistance available at a very early stage, UniSeed will play a major role in ensuring that the maximum possible benefits from the commercialisation of Australian research accrues in Australia".
For more information or interviews with the following persons, please call:
Pia De Lima, Burson- Marsteller (telephone 03 9685 8539 or 0418 311 437) or Peter McCutcheon, UQ Communications (telephone 07 3365 1088 or 0413 380 012 or email communications@mailbox.uq.edu.au)
