Oxford’s high growth technology business could receive up to £1 billion in new funding this year, according to David Mott, Managing Partner of investment manager Oxford Capital. The capital, raised by investment management firms will be used to back start-up businesses and high growth technology companies in the ‘Oxford Tech Cluster’. It follows a series of recent high profile success stories which have seen Oxford-based businesses achieve valuations in excess of £1 billion following their acquisitions or listings in London and New York.
The investors – Oxford Capital, Oxford Sciences Innovations, IP Group, Woodford Investment Management, Parkwalk, Mercia, and OSEM – have together raised over £1.4 billion in the past 12 months. Four of these firms increased their investment funds by over £100 million each during the period. Much of this capital is either managed locally, dedicated to backing new spinouts from the research institutions or in part aimed at backing the rising stars of the Oxford Tech Cluster.
The Oxford Tech Cluster is the concentrated group of entrepreneurs, investors, high technology businesses and researchers based in Oxford’s science parks, research centres and universities.
David Mott, Managing Partner, Oxford Capital, said:
“The Oxford Cluster is best known for the strength of its life sciences sector, though other sectors have attracted substantial funding as well such as energy, software and advanced engineering. Increasingly, companies in the Oxford Cluster are attracting international capital from the US, Europe or Asia. Green Biologics, a specialty chemicals business is backed by the Swire Group, an Asian conglomerate, as well as venture capital investors Sofinnova Ventures and Oxford Capital.”
This mass of new capital is set to fund a wave of investments in new and expanding technology businesses. This follows the recent success stories such as Circassia, Oxford Immunotec, Natural Motion and Arieso, whose combined valuations exceeded £1 billion following their acquisitions or listings in London and New York.
David Mott, said:
“This wall of new investment capital great news for high tech businesses in the Oxford region who are set to benefit. The quality of companies around Oxford emerging from the science parks, research centres and universities has been rising rapidly in recent years. A virtuous circle is developing as successful companies attract both talent and funding. As these companies grow in size and value, they foster new generations of ambitious entrepreneurs and innovators who in turn will launch the next generation of businesses. Companies such as Oxford Nanopore, Oxitec, Oxford Pharmascience and Oxford PV have already received significant funding and are emerging as leaders in their markets.”
Leading investors in the cluster have been brought together at Venturefest Oxford 2015, an annual networking event for high tech businesses. Ted Mott, co-founder of Oxford Capital, will lead a debate to explore how the Oxford Tech Cluster has attracted so much capital and how it will be deployed to create the next generation of technology stars. Venturefest Oxford 2015, is taking place on Wednesday, 8th July 2015 at the Saïd Business School, Oxford.
Oxford Capital works in partnership with exceptional entrepreneurs and management teams to provide the capital, expertise and support they need to turn outstanding innovation into highly-successful businesses. It has invested in more than 40 growth companies, operating in industries ranging from digital media to sustainable agriculture and medical technology.