Available funding sources

Proof-of-Principle Programme

One of the major early hurdles to overcome in IP commercialisation is to find the early stage funding needed to take a novel idea to a demonstrable stage and thereby validating the commercial potential of that idea in order to attract potential investors or licensees. To overcome this first hurdle the University has set up a ‘Proof-of-Principle’ account for projects with good potential.

The amount of money awarded averages £50,000 to be spent over a 9/12 month period to move the project on to the next stage, for example, a prototype, more in-depth market studies and/or the generation of additional data for a patent application.

Ideas are initially screened by members of UMIP’s Faculty teams and then by a panel, including members of UMIP’s Investment Committee. Applications are assessed every three months using criteria such as: IP situation, applications of the idea, market analysis, benefits and risk analysis. A rapid and considered response is given and successful applications can commence immediately.

Development Funding

Through UMIP, sources of further funding exist to give follow-on support to exceptional projects with outstanding commercial potential which have successfully completed ‘Proof-of-Principle’ (POP). These investments are usually in the £100K to £750K range and are used to maintain momentum in a licence project or spin-out or to “gear-in” seedcorn funding beyond the POP phase. Funding requirements for spin-outs tend to be much higher than for licence projects.

UMIP has a regular dialogue about its deal flow and POP projects with the UMIP Premier Fund (UPF) and other "seed" funds. UPF operates mainly in the late seed stage (£250K to £750K) with an ability to invest up to £3M in any spin-out. It is an independent fund, managed by MTI Partners and has an office on campus. The website is www.theupf.com

At these development stages, UMIP also has regular information exchanges with the University’s incubator company, UMIC, to plan for office and laboratory facilities needed by emerging spin-outs. UMIC is based at The Manchester Incubator Building and its website is www.umic.co.uk