CIC launches new long-term financing fund
Cambridge Innovation Capital (CIC) had launched a new fund worth GBP50 million for investments. The fund would focus on helping tech companies and startups on developing ideas and technology without having to divert energy on raising funds and accelerating revenue creation. The fund would also help startups to develop their ideas and develop technology-based products without having to worry about pleasing investors, according to a TechCrunch report.
The University of Cambridge would support the fund through its commercialization office, Cambridge Enterprise. A representative for Cambridge Enterprise said about the new fund, "CIC plans to invest the £50m over the next three years, and hopes to make its first investments by the end of the year."
A related statement was released saying that the fund would provide long-term financing. The move was done to aid companies bridge critical middle stage of commercial development commonly referred to as "valley of death".
The statement added, "CIC will invest in a broad range of companies at different stages in their development, using a long term return strategy - removing the pressure to deliver the early exits associated with the traditional venture capital model."