Recently, prompted by the success of two specialized firms, several newer companies have begun to invest in the research of academic institutions, funding R&D and start-ups. The two companies, IP Group and Imperial Innovations, each owns shares worth hundreds of millions of dollars in close to 100 companies. To realize the promise of university technologies, the investment firms provide capital for development and commercialization. The investment firms support companies earlier than venture capital investors typically do, working with universities over the long term. They may, for example, invest small amounts to further early technology development, then later provide additional funding to establish companies. Returns may take many years to generate, so these investment firms find ways to continue to fund the companies as they develop. Their own success depends on the companies they support; thus it may take many years to establish the finances for reinvestment.

Source: Chemical & Engineering News