B1 Medical, a UK-based company focused on commercialization of orthopedic medical devices, has raised £1.3 million in first-round funding.
The investment comes from Sigma Technology Venture Fund, a fund managed by the quoted asset management group, Sigma Capital Group plc, which put in GBP 800,000, alongside the Scottish Co-investment Fund, which invested GBP 500,000.
The Scottish Co-investment Fund is a GBP 45m equity investment fund set up by Scottish Enterprise, and part funded by the European Regional Development Fund to invest from GBP 50,000 to GBP 500,000 in funding rounds of between GBP 100,000 and GBP 2m.
On completion of this investment the three founding institutions exclusively licensed a portfolio of eight patents to B1 Medical. These cover products ranging from joint replacement devices to systems to speed up operations and promote faster recovery, as well as software to aid in the prediction of individuals who are likely to develop osteoarthritis, osteoporosis and fractures.
Stephen Logan, Senior Vice-Principal, of Aberdeen University said, “B1 Medical represents an exciting and unique model of commercialisation where the institutions have recognised the value of working together to bundle intellectual property to create this new spin-out.”
As part of the deal B1 Medical was granted an exclusive ten-year first option over all future medical devices for orthopaedics developed by the founders.
B1 Medical’s relationship with the institutions gives it access to a pool of scientists and clinicians who will both generate new intellectual property and assist with research and development of the existing projects.
The first funding round will be used to begin commercialisation of the current portfolio. It is anticipated that further rounds will be raised over the next 12-18 months and an IPO is currently under consideration for 2007.
17 August 2006
