Dr Richard Thompson on spinouts and technology businesses
Dr Richard Thompson knows a thing or two about spinouts and
technology businesses, having spent much of his international
career working with them.
After returning to Wales he first helped Welsh Universities
with spinouts and start-ups before establishing himself as a
technology investor with leading UK SME investor, Finance Wales.
Part of Finance Wales’ technology team,
he’s actively investing in technology-based companies including
spinouts.
Available capital
Raising early stage equity investment
isn’t easy and it’s become harder recently, but Finance Wales has
capital available and invests in first and
follow-on rounds. “Our appetite for investment is
high, as is the quality of opportunities on offer.
"Having launched its £150 million fund in 2009, Finance Wales is
rapidly becoming one of the UK’s most active early stage investors
and in 2009-10 made 30 early stage investments, 14 of which were
co-investments,” Dr Thompson explains.
Increasingly, Dr Thompson is talking to technology businesses
and spinouts from outside Wales. “These small
companies approach us; they are mobile and are prepared to relocate
to secure investment. In the past, companies would move to Wales to
secure grants or for the incubator facilities. Now we’re finding
they’re seeking VC investment and we ‘signpost’ them to what else
is on offer.”
Challenges for spinouts
Having capital to invest at an early stage, and an appetite to
follow its investments, Finance Wales makes a refreshing change, Dr
Thompson believes. “We have over 10 years’ experience of working
with spinouts, we invest as early as just about any other VC I
know; we can follow our money and we’re proactive in finding
co-investors.”
Dr Thompson knows the challenges technology businesses and
spinouts face and experience tells him that securing
long-term exit-focused investment is the key.
“Proving their technology is just the start. There are management
teams to help build, markets to develop and sales to be achieved,
but these challenges can be overcome with exit-focussed
investment,” he explains.
In particular spinouts not only need investment capital, they
need time, focus and the support of a strong investor to give them
the best chance of success and to attract co-investors. For Dr
Thompson, Q-Chip, the Cardiff-based biopharma company chaired by
Ken Powell, founder of Arrow Therapeutics, is a good example.
“Q-Chip has so far secured £8.5
million from Finance Wales, Disruptive Capital, and a high profile
angel syndicate including British venture capitalist, Jon Moulton.
Q-chip is one of a number of Cardiff University spinouts Finance
Wales has invested in with Fusion IP.
"Finance Wales’ early stage team is well networked with the
higher education sector and examples of our many related
investments include Glamorgan University spinout, GeoVs, as well as Calon
Cardio and Haemair which are both based at Swansea University’s
Institute of Life Science.”
See Finance Wales' latest early stage
investments.
Now, with some exciting portfolio companies under his belt,
money to invest and to follow his investments, Dr Thompson is keen
to meet even more technology-based companies.
Contact Dr Richard Thompson.
Key facts
- Launched £150 million fund in 2009
- Made 30 early stage investments in 2009 - 10
This article was first published in Spinout UK's Quarterly
Journal.