A key ingredient in IP Group’s creation of value for stakeholders is providing developing businesses with access to capital. IP Group accesses capital from a broad range of sources:
IP Group balance sheet
Since its admission to AIM in 2003, the Group has raised approximately £85m of net proceeds from its shareholders (most recently through a placing raising £53m after expenses in June 2011). This has provided the Group with strong cash reserves from which to provide capital to its spin-out opportunities and portfolio companies as they develop.
Funds managed by IP Group
Through its Financial Conduct Authority-regulated venture capital fund management subsidiary, Top Technology Ventures Limited, IP Group currently manages funds of over £85m, with approximately half of this remaining to be invested in mid-2013. IP Group is currently investing in new opportunities from IP Venture Fund II and The North East Technology Fund.
Through Top Technology Ventures, IP Group is also active in seeking co-investors for its portfolio companies as they develop and often prefers to syndicate financing rounds in which it participates. Through an established network of contacts within the venture capital and wider investment community, IP Group is able to match investors to its portfolio companies while facilitating a smooth process for both investor and investee.
Through these varied sources, IP Group has provided capital to companies that are currently worth c. £1bn*, with the majority of them start-ups at the time of the Group’s initial involvement.
*Calculated by reference to the values attributed to the Group’s investments in such portfolio companies in the consolidated statement of financial position included in the annual report and accounts of the Company for the financial year ended 31 December 2012 and grossed up to reflect the overall value of such portfolio companies.
“IP Group has great links to the City. They know the small cap investment community and have put us in touch with various funds who are now investors. As a shareholder themselves, they have been very supportive and patient, following their money several times. The IP Group team genuinely understands how a real trading business works which is markedly different from other small cap funds.”