Oxford: Isis Innovation announces tax effective investing in university spin-outs

For the first time, private investors will be able to make tax efficient investments in range of new Oxford technology companies via a dedicated fund, the University of Oxford Isis Fund, set up by Parkwalk Advisors and Isis Innovation, the University’s research commercialisation arm. 

The outcomes of this type of early investment can be seen in recent successes from the University of Oxford’s spin-out portfolio such as NaturalMotion which was recently acquired by US games company Zynga for $527 million, Oxford Immunotec which listed on Nasdaq late last year in a $64m initial public offering and Oxford Nanopore which is developing a much-anticipated mini gene sequencer.

The fund will invest across all areas of technology and intellectual property from Oxford including new Oxford-based software companies. Recent Isis spin-outs include Oxcept, a company developing technology for making secure payments by mobile phone, Oxehealth, developing an app which allows computers or iPads to remotely monitor vital signs including heart rate and respiration, and Run 3D, Europe’s first computerised three-dimensional motion analysis service for runners.

Parkwalk’s Moray Wright said: “We are delighted to be working with Isis Innovation to offer alumni and friends of the University the opportunity to participate in the exciting opportunities emanating from Oxford University.”

Isis managing director Tom Hockaday said: “The University of Oxford Isis Fund will provide University inventors and entrepreneurs with vital early investment, and investors with the opportunity to invest in a range of new companies as they spin out from the University, via a dedicated fund.”

Parkwalk currently manages nine EIS funds, including two with Cambridge Enterprise, the technology transfer subsidiary of the University of Cambridge. The funds have invested in 27 companies and all of the fully invested funds are currently valued above investment cost.

Portfolio companies include Xeros, a University of Leeds spin-out which has launched a near-waterless washing machine and which is currently considering an IPO and Aqdot, a Cambridge spin-out developing unique chemistry for encapsulating, storing and releasing drugs and other chemicals.