| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Innovation Last Updated: Jul 8, 2011 - 6:28 AM


BiancaMed - - another tax-funded Irish university spinout bought by US firm; French VC makes 50% return
By Michael Hennigan, Founder and Editor of Finfacts
Jul 7, 2011 - 6:13 AM

Email this article
 Printer friendly page

BiancaMed, has become the latest Irish university spinout to be bought by a US firm with the promoters and venture capital backers cashing out in a multi-million euro deal but unanswered questions remaining on the Irish taxpayer funding billions of euros in research but any young company with potential likely to be snapped up before significant value added is available for the Irish economy. One of the young company's venture capital (VC) funders said yesterday that it had made a 50% internal rate of return on its investment.

ResMed of San Diego, California, which is listed on the New York Stock Exchange and the Australian Stock Exchange, and is a developer, manufacturer and distributor of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders, on Wednesday announced the acquisition of BiancaMed, acquiring all shares for cash.

BiancaMed, a University College Dublin (UCD) spin-out company, was co-founded in 2003 by Dr Philip de Chazal, Dr Conor Hanley and Professor Conor Heneghan, to commercialise research undertaken in UCD’s School of Electrical, Electronic and Mechanical Engineering.

The Irish startup is headquartered in NovaUCD, the Innovation and Technology Transfer Centre at UCD and currently employs a staff of 29. Shareholders include Enterprise Ireland, DFJ ePlanet Ventures, Invest Northern Ireland, ResMed, Seventure Partners, founding directors, staff  and University College Dublin.

The founding directors are reported to plan to remain with the company under its new owners. However, as they no longer will have stakes in the operation, that is unlikely to be very long.

The deal value has not been disclosed but the French venture capital company Seventure which led a €6m Series B round in June 2009, said it will make an IRR (internal rate of return) of approximately 50% on completion of the sale.

BiancaMed represents the first investment that Seventure has made outside of continental Europe. "Conor Hanley, CEO BiancaMed, and his team have been very successful in bringing to market BiancaMed’s non contact sensor technology," commented Isabelle de Cremoux, head of Life Sciences and General Partner, Seventure. "On behalf of our investors, we thank the executive team for the excellent progress made and momentum built since we invested. The excellent investment return generated by this investment also justifies the strategic decision we made in 2009 to expand our pan European investment focus to include UK and Ireland."

BiancaMed has raised €11m in funding since it was founded in 2003.

The core of BiancaMed’s proprietary technology is a sensitive motion sensor that can detect respiration and movement without being connected to the human body. The sensor incorporates sophisticated biometric software that converts the motion data into measurements of sleep and breathing.

In 2010, two University of Limerick spinouts were acquired by US firms.

We wrote then that the Government has put faith and public money in its 'smart economy' strategy and Finfacts has raised questions about the plan first announced in 2006 to be recognised as a 'world class knowledge economy' by 2013.

It is not a surprise that startup high tech firms, after years of challenges, would aspire to be acquired by bigger US firms. However, while it may be a good move for the promoters and investors to cash-out, it highlights the difficulty of public policy in achieving the goal of developing and funding firms that can become scalable and contribute value-added back to the Irish economy.

It simply is a foolish strategy and earlier this year, the listed Norkom, was sold to BAE Systems, a unit of the UK defence giant.

The Irish public science annual budget is €2.5bn. 

Early stage takeover firms are usually motivated to acquire the technology not to build a big operation in Ireland.

SEE: Innovation: Ireland's 'smart economy' strategy, universities and free-lunch entrepreneurship

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

Innovation
Latest Headlines
Digital Taylorism: Amazon's chief rejects depiction of "soulless, dystopian workplace"
Most surviving startups do not grow; Tiny number powers jobs engine
Despite euro dip China & US remain most competitive manufacturing nations
Business startup rates up in most OECD countries led by Australia and UK
NASA's Kepler mission has confirmed the first near-Earth-size planet
Energy subsidies at 6.5% of global GDP; Commodity prices to remain weak
US startups rely on personal savings, debt; Venture capital funds less than 1%
Europe produces 13 $1bn+ "unicorn" startups in one year; London is Europe's digital capital
Irish-based firms raised €120m in VC funding in Q1 2015; Some top recipients Irish for tax purposes
Ireland: Fourth highest 25-34 year old ratio of third-level graduates in developed world: So what?
Business dynamism/ employer firm startups in US secular decline
Innovation Union Scoreboard 2015: Sweden, Denmark, Finland and Germany are on top
Education systems failing to provide students with skills for success in 21st century
US, Switzerland, Denmark, Sweden, Finland have best higher education systems
Handbook of Service Innovation: Ireland moving up the value chain?
Switzerland revives silk industry that thrived for two centuries
Sales of Irish tech firms create 300 millionaires in 15 years and no scaleups
Apple warns of 'material' tax payments from EU's Irish tax investigation
Apple earnings surge 33% on higher price and iPhone sales jump in China
Big Pharma's internationalisation of R&D to China
The dangers of romanticising entrepreneurs despite key role
UK and Irish business R&D heavily reliant on foreign-owned firms
Silicon Valley and the development of the silicon microchip - Part 2
Ireland: Innovation with or without R&D/ scientific breakthroughs
UK government most open/ transparent in world; Ireland & Greece lowest ranking in Europe
10 questions about Switzerland's Solar Impulse aircraft – answered
Silicon Valley loses its silicon; Typical household income stagnates - Part 1
21st century skills are 18 century skills + a computer
Growing ICT sector in Europe accounts for 5% of employment
Should Ireland copy Singapore's scientific research investment plan?
Startups vs Scaleups: 4% of UK startups have 10+ employees 10 years later
Irish patent filings at European Patent Office fell in 2014
Facebook's maze of privacy settings maybe in breach of European law
Apple to invest €1.7bn in Irish and Danish data centres
Silicon Valley insider warns of dodgy $1bn valuations of private companies
Israel's Startup Nation not a jobs engine; Nor is Irish high tech
Established industries often beat new technology investment returns
Ireland: Noonan said EU to drop Apple tax case; Now expects court case
Irish R&D Tax Credit: No evidence of rising business innovation; Facts don't matter
Apple reports biggest profit of a public company in history