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Oxford Technology is the specialist
in the start-up and early stage technology sector
Tax Shelter Report, Allenbridge
Oxford Technology is the specialist
in the start-up and early stage technology sector
Tax Shelter Report, Allenbridge
Oxford Technology is the specialist
in the start-up and early stage technology sector
Tax Shelter Report, Allenbridge

VCT2

Oxford Technology 2 VCT raised £6.0m in 2000 with top-up offers to date raising a further £468k. The Fund is now fully invested.

Net asset value per share was 28.2p as at 29 Feb 2016.

Dividends to date total 13.0p, mainly resulting from the sale of Hardide Ltd and from the sale of Commerce Decisions.


Portfolio

Arecor

Arecor

Arecor- Investment Information for OT2
Date of First Investment Jul 2007
Total Investment to date £14,282
Current Value of Holding (as at 31 May 2015) £38,140
% Equity 0.6%
Arecor - Investment Information for OT3
Date of First Investment Jul 2007
Total Investment to Date £23,985
Current Value of Holding (as at 31 May 2015) £46,820
% Equity 0.7%
Arecor - Investment Information for OT4
Date of First Investment Jul 2007
Total Investment to Date £231,198
Current Value of Holding (as at 31 May 2015) £445,375
% Equity 6.4%

In July 2007, Arecor was spun-out as a separate company with all existing shareholders in Insense owning their pro-rata shares in Arecor. Arecor then raised additional capital (OT4 was able to subscribe but OT2 and OT3 did not have the capital with which to do this at the time).

As proteins increasingly dominate the drug development pipelines of major pharmaceutical companies, many are seeking assistance in developing stable formulations. The company has paid feasibility studies with ten of the top twenty pharmaceutical companies to new stable formulations of specific therapeutic proteins and vaccines.

In the spring of 2010, Arecor signed a broad agreement with Genzyme, Inc. under which Arecor will develop stable formulations of Genzyme’s proprietary proteins and license the Arecor technology for an ongoing pipeline of products. In April 2011 Arecor signed license agreements covering two vaccines with GSK Bio.  In December 2011, Arecor reached agreement with the American company Eli Lilly which provides for licenses on formulations of new and existing products.  Currently, Arecor is working on three products under this agreement with the first expected to go to license in the coming year.  A second agreement was signed with Lilly in May 2012 providing for a license on a specific undisclosed marketed molecule.  If the development is successful these agreements can generate very substantial milestone income on each molecule plus ongoing royalties to Arecor.

Arecor has expanded the initial patent portfolio to fifteen patent families covering all the major pathways of protein degradation and improved formulations for specific products.  The Company has recently received official notification of its first patent going to grant.  

Arecor

Last Updated: Tuesday, August 18, 2015

Commerce Decisions

Commerce Decisions

Commerce Decisions- Investment Information for OT2
Date of First Investment Aug 2001
Total Investment to date £200,000
Total Return on Sale - 2008 £637,271
Commerce Decisions- Investment Information for OT3
Date of First Investment Jul 2003
Total Investment to date £100,000
Total Return on Sale - 2008 £233,939

Commerce Decisions was acquired by Qinetiq in 2008.

Commerce Decisions Ltd developed a software package called AWARD that assists organisations making large, complex procurements manage the process more efficiently. For example, whilst the purchase of a single computer is an extremely simple process, the procurement of ten thousand computers, a sports stadium, or a battleship, is a vastly more complex undertaking involving bids from numerous contractors and subcontractors.

AWARD allows both bidders (AWARD for Bidders) and buyers (AWARD for Buyers) to manage the bid preparation and assessment process efficiently, reaching decisions rapidly, collaboratively, and with a transparent audit trail - potentially saving hundreds of thousands of pounds.

Commerce Decisions Office

Last Updated: Tuesday, August 18, 2015

DHA Ltd

www.dha.co.uk

DHA - Investment Information for OT1
Date of First Investment Sep 1999
Total Investment to date £150,000
Current Value of Holding (as at May 31 2015) £9,687
% Equity 26.9 %
DHA - Investment Information for OT2
Date of First Investment Nov 2001
Total Investment to date -
Current Value of Holding (as at 31 May 2015) £434
% Equity 1.2 %

Duncan Hynd Associates Limited (DHA) specialises in serving the radiotherapy market. OT1 initially invested in 1999, and the business increased its staff and expanded. However the business was not profitable and in order to survive, it therefore contracted, and Duncan Hynd, the founder became the sole employee. This was successful in the sense that the business has survived and has been modestly profitable.

Last Updated: Tuesday, August 18, 2015

Equitalk

www.equitalk.co.uk

Equitalk - Investment Information for OT1
Date of First Investment Jan 2000
Total Investment to date £135,672
Total Return on Sale - July 2006 £9,107
Equitalk - Investment Information for OT2
Date of First Investment Jan 2000
Total Investment to date £270,211
Total Return on Sale - July 2006 £34,939

Kleeneze Conference LaunchEquitalk was founded in January 2000 with the objective of creating a low cost, paperless, telephone service. A typical user saves about 30% of the cost of calls from BT. Any shareholder wishing to reduce telephone and internet connection charges may email customer.service@equitalk.co.uk The service is inexpensive to run since its processes are automated, customers are e-mailed their bill and pay by direct debit. At no point is there any paper. Customers are able to see details of their calls within 24 hours on the internet. However, the market became increasingly competitive, with more and more companies entering the business, some of them very large and well-funded. In July 2006 Equitalk was sold to X-Fone.

Last Updated: Tuesday, August 18, 2015

ImmunoBiology

Immuno Biology

ImmunoBiology- Investment Information for OT2
Date of First Investment Dec 2000
Total Investment to date £175,000
Current Value of Holding (as at 31 May 2015) £12,352
% Equity 0.3%
ImmunoBiology- Investment Information for OT3
Date of First Investment May 2003
Total Investment to date £250,000
Current Value of Holding (as at 31 May 2015) £187,356
% Equity 3.8%
ImmunoBiology- Investment Information for OT4
Date of First Investment Dec 2000
Total Investment to date £375,000
Current Value of Holding (as at 31 May 2015) £350,386
% Equity 7.2%

ImmunoBiology is developing novel vaccines using a proprietary heat shock protein-complex (HspC) approach. Hsps are an important family of protective proteins that are produced by cells under stress - they were originally observed in cells that had been subjected to a sudden temperature increase, hence the name heat shock protein.

The HspC technology allows the production of vaccines incorporating a range of different antigens from a single pathogen bound to a carrier protein the heat shock protein. ImmBio’s research shows that HspC vaccines are more powerful, longer lasting and potentially provide broader protection against multiple strains of a particular pathogen than existing vaccines.

The influenza virus

Last Updated: Tuesday, August 18, 2015

Inaplex

Inaplex

Inaplex- Investment Information for OT2
Date of First Investment Jan 2001
Total Investment to date £138,317
Current Value of Holding (as at 31 May 2015) £36,308
% Equity 21.5%
Inaplex- Investment Information for OT3
Date of First Investment Mar 2003
Total Investment to date £57,955
Current Value of Holding (as at 31 May 2015) £22,416
% Equity 13.3%

InaPlex is a specialist in CRM integration. Customer Relationship Management systems are used by organisations to manage and foster their relationships with customers. Over the last 10 years, they have grown in importance and sophistication; they are now a major line of business application for many organisations.

To get maximum value from their CRM systems, it is important that the information in them be accurate, up to date, and reflect a full picture of the companies interactions with their customers. Unfortunately, much valuable data is held in applications outside the CRM system.

InaPlex has products and expertise developed over many years in bringing the data into the CRM system and keeping it fresh and accurate. The core product, Inaport, is a powerful, sophisticated integration engine that has been deployed at thousands of sites around the world.

Inaport provides:

* code free development of integration profiles

* a suite of data transformation tools and techniques specialised for CRM data

* best in class matching techniques to enable accurate identification of correct matches, and prevention of duplicates

* management tolls to enable rapid deployment and smooth operation.

Inaport supports all the major mid-market CRM systems:

* Microsoft CRM

* Saleslogix from Infor

* SageCRM and SageCRM.com from Sage

* ACT! from Swiftpage

* GoldMine from FrontRange

For each system, Inaport provides specialised adapters with deep knowledge of the underlying data architecture and business rules, with the objective of making data import and export as painless as possible.

Inaport is used for three broad categories of task:

* one way or bi-directional integration between the CRM system and the enterprise data repositories

* initial data load of the CRM system

* migration of legacy CRM systems to new CRM systems, for example:

- ACT! to Microsoft CRM, SalesLogix or SageCRM

- GoldMine to Microsoft CRM, SalesLogix or SageCRM

In addition to Inaport, InaPlex provides support, training and professional services. InaPlex has been employed in a wide range

of complex integration projects, such as:

* merge multiple Siebel databases into a single SageCRM system

* bi-direction integration between an Ingres ERP system and Microsoft system

* migrate a heavily customised GoldMine system to Microsoft CRM

Inaport established a US office in California in 2008, and subsequently closed its UK office and is now run entirely from the US, its largest market, although sales continue to be made throughout the world.

Last Updated: Tuesday, August 18, 2015

Insense

Insense

Insense - Investment Information for OT2
Date of First Investment Jun 2001
Total Investment to date £204,259
Value of Holding (As at 31 May 2015) £37,927
% Equity 3.5 %
Insense - Investment Information for OT3
Date of First Investment May 2003
Total Investment to date £316,894
Value of Holding (As at 31 May 2015) £43,868
% Equity 4.1 %
Insense - Investment Information for OT4
Date of First Investment May 2003
Total Investment to date £457,306
Value of Holding (As at 31 May 2015) £48,488
% Equity 4.5 %

Insense Ltd is a spin-out from Unilever and has developed a range of active dressings, which can be applied to the skin to treat a variety of conditions. The essence of the technology is that the the dressings consist of two (or more) parts which are then brought together on the skin when the dressing is applied. The parts then react to produce a chemical (s) which is slowly released over a period of hours or days and this chemical then actively helps the condition.

Insense

The first products were for wound-healing. Insense produced two dressings, Iodozyme and OxyZyme. The first was for infecxted wounds produced a steady flux of Iodine and oxygen at the wound surface. The Iodine reduced or elimianted the infection and the Oxygen promoted natural healing processes. OxyZyme was for non-infected wounds and produced a steady flux of wound-healing Oxygen at the wound surface. (The best treatment for wounds is to leave them open to the air. But the problem with this is that the wounds can become infected. Oxyzyme allows the wound to be bathed in a flux of Oxygen while also allowing the wound to be covered to keep out infections.)

Insense sold these products for several years to the NHS, but did not itself have the marketing organisation necessary to achieve more than a small volume of sales and Insense did not reach breakeven on these sales. In 2012 the rights to the manufacture and marketing of these dressings were sold to Crawford Medical. Insense received an up-front payment which will be followed by further payments based on performance.

In order to sterilise the Insense dressings after manufacture, Professor Davis had to develop a method of stabilising the proteins so that they would withstand ionising radiation. Having done this, it transpired that many pharma companies were interested in using this technology for their own protein-based products. This led to the spin-out of Arecor. All the shareholders in Insense received the same % of shares in Arecor which then raised capital to fund its own expansion.

Insense has developed treatments for a number of skin conditions. Insense is considering how best to exploit these opportunities. One method is by partnering with or licensing to larger companies who are already established in these markets.

Last Updated: Tuesday, August 18, 2015

MET Ltd

MET

 MET - Investment Information for OT1
 Date of First Investment  Dec 1998
 Total Investment to Date  £210,000
 Total Return on Sale - March 2010  £816,500
MET - Investment Information for OT2
 Date of First Investment  May 2002
  Total Investment to Date  £75,000
  Total Return on Sale - March 2010  £192,459
 MET - Investment Information for OT3
  Date of First Investment  May 2002
  Total Investment to Date  £75,000
  Total Return on Sale - March 2010  £192,459

Membrane Extraction Technology (MET) was founded by Andrew Livingston, Professor of Chemical Engineering at Imperial College in 1995. OT1 was the first external investor in December 1998. Originally based at Imperial College, the company specialised in developing methods for improving the separation stage of chemical preparations. Sometimes the task was to remove an impurity by developing a membrane-based process which would allow the impurity to pass selectively through the membrane, sometimes the membrane would allow only the desired chemical to pass through the membrane. During these initial years, MET used membranes manufactured by others. But these were not always ideal for the task.

So, in 2006, MET began developing membranes of its own, and established a facility for manufacturing these. By this time, MET was based at a small industrial unit in Fulham. Sales, including grants, were £681,000 in the year to July 2008 and MET recorded a profit of £90,000. During 2009, MET moved all its operations into a larger factory in North London, where it has offices, a laboratory for R&D and testing/quality control, and a facility for manufacturing its proprietary range of organic nanofiltration membranes, Duramem, produced in spiral-wound format so that each module incorporates many square meters of membrane.

MET LtdMET has supplied "MET cells" to many of the worlds largest pharmaceutical companies. These are bench-top devices which enable companies to try out separations using a variety of membranes and process conditions at lab scale. The hope and expectation is that these trials will result in some of the membranes being used in production, in which case the companies concerned will order production quantities of membranes from MET. This process has started to work with one of the largest pharma companies using Duramem at process scale, when on 1st March 2010, MET was acquired by Evonik Industries AG, Essen, Germany.

Last Updated: Tuesday, August 18, 2015

OC Robotics

OC Robotics

OC Robotics - Investment Information for OT2
Date of First Investment Jan 2001
Total Investment to Date £225,000
Current Value of Holding (as at 31 May 2015) £858,500
% Equity 36.91%

OT2 was the original investor in OC Robotics in January 2001 when the company consisted of the two founders working from home with an idea. OC Robotics is now arguably the world’s leading designer and manufacturer of snake-arm robots in which the head of the snake may be driven along a 3D path in space with the rest of the snake following the same path taken by the head. A video of this may be seen here:

Snake arm robot in action

OC Robotics

The company has received several grants for ongoing projects and sales are increasing. The major projects are Laser Snake – a snake for nuclear decommissioning, Petrobot – a snake for inspecting oil and gas pressure vessels and Rande Snake for inspecting inside wings of US military aircraft. If the demonstrator works well, this could lead to significant orders.

In summary OCRobotics has never been busier and large grants also mean that the cash position has never been healthier. At the end of 2014, the opportunity to purchase additional shares in the company arose and OT2 took up this offer, increasing its stake to 36.9%. The further investment was £85,860.

Last Updated: Thursday, August 20, 2015

Orthogem

Orthogem

Orthogem - Investment Information for OT2
Date of First Investment Dec 2000
Total Investment to Date £303,937
Current Value of Holding (as at 31 May 2015) £62,475
% Equity 7.3%
Orthogem - Investment Information for OT3
Date of First Investment Dec 2004
Total Investment to Date £113,999
Current Value of Holding (as at 31 May 2015) £21,831
% Equity 2.5%
Orthogem - Investment Information for OT4
Date of First Investment May 2007
Total Investment to Date £114,915
Current Value of Holding (as at 31 May 2015) £14,646
% Equity 1.7%

Orthogem has developed a method for producing a biocompatible, artificial bone graft called TriPore to replace the use of autograft - the patients own bone, allograft - cadaver bone, or xenograft animal bone.

Over the last decade, great efforts have been extended to producing human bone substitutes and with recent horror stories about bones being surreptitiously removed from bodies in morgues and sold into the medical device market, the search for an artificial replacement becomes more urgent.

TriPore blocks and TriPore granules were CE marked in 2006, and approval by the United States FDA was received in 2007.

Last Updated: Tuesday, August 18, 2015

Oxis Energy

Oxis Energy

 Oxis Energy - Investment Information for OT2
Date of First Investment Nov 2000
Total Investment to Date £540,270
Current Value of Holding (as at 31 May 2015) £22,308
% Equity 0.3%
Oxis Energy - Investment Information for OT4
Date of First Investment Nov 2005
Total Investment to Date £305,330
Current Value of Holding (as at 31 May 2015) £151,507
 % Equity 0.3%

Oxis Energy is developing a rechargeable battery with the following exceptional properties:

- Extremely high specific energy density 1.5-2x existing best rechargeable battery

- Wide temperature of operation 0°C to 125°C

- Inherent safety - no control electronics

These properties represent a step change in performance versus existing rechargeable battery technologies and for some markets they will be a key enabling technology, for example, the energy weight ratio specific energy density is pivotal in electric vehicles because the weight of the battery is a significant part of the total vehicle weight.

Commercially, the company is currently focused on three key markets, down-hole oil/gas tools, electric vehicles and power tools. The oil/gas industry currently spends in excess of $100m/year in primary batteries (one time use) in downhole tools.

Oxis ability to operate in a high temperature range and its inherent tolerance to high charge/discharge are critical advantages ' and of course there is significant value because one rechargeable cell has the potential to replace up to 30 primary cells.

The Oxis Team

Last Updated: Tuesday, August 18, 2015

Plasma Antennas

Plasma Antennas

Plasma Antennas - Investment Information for OT2
Date of First Investment Nov 2001
Total Investment to Date £187,550
Current Value of Holding (as at 31 May 2015) £188,856
% Equity 8.3%
Plasma Antennas - Investment Information for OT3
Date of First Investment Sep 2004
Total Investment to Date £108,057
Current Value of Holding (as at 31 May 2015) £108,956
% Equity 5.3%
Plasma Antennas - Investment Information for OT4
Date of First Investment Mar 2005
Total Investment to Date £447,562
Current Value of Holding (as at 31 May 2015) £576,694
% Equity 24.9%

Plasma Antennas has developed a range of next-generation smart selectable multi-beam antenna technologies for small cell backhaul, broadband wireless access, mesh network and other communications and sensing applications. Based on a set of patented beamforming technologies, these high-performance electronically-steerable antennas are extremely lightweight and compact.

Plasma Antennas

The company is at a very interesting point in its development. Having specialised in very high-end antennas (at up to £50,000 each) for military applications, it is now attracting a great deal of interest from mobile phone operators and trials are in progress with BliNQ, Vodafone and Airspan. The company is valued at the last fundraising share price of 45p per share. OT2 also has a loan of £13,000.

Last Updated: Thursday, August 20, 2015

Select Technology

www.selectec.co.uk

Select Technology- Investment Information for OT1
Date of First Investment Sep 1999
Total Investment to date £488,000
Current Value of Holding (as at 31 May 2015) £1,198,306
% Equity 30.0%
Select Technology- Investment Information for OT2
Date of First Investment Nov 2001
Total Investment to date £132,436
Current Value of Holding (as at 31 May 2015) £296,384
% Equity 7.4%
Select Technology- Investment Information for OT3
Date of First Investment Nov 2004
Total Investment to date £47,051
Current Value of Holding (as at 31 May 2015) £112,307
% Equity 2.8%
Select Technology- Investment Information for OT4
Date of First Investment Aug 2006
Total Investment to date £236,703
Current Value of Holding (as at 31 May 2015) £734,226
% Equity 18.4%

Select Technology specialises in software for photocopiers (now known as MFDs – Multi-function devices – since they scan, fax, email and do other other tasks in addition to photocopying). There are two strands to the business: (1) writing software which sits at the heart of MFDs and which greatly improve the user experience, enabling users to access all software programs to which they are entitled with a single sign on, and giving these programs the same ‘look and feel’, and (2) software distribution: Select is the European master-distributor for PaperCut, a world-leading print-management software product.

As with computers in the 1980s, MFD hardware has become a commodity product with little to choose between the offerings of most companies. Increasingly, what makes customers choose one make in preference to another is the quality and ease of use of the many software programs which run on them. Most MFDs will be on networks, so that, for example, a user may scan a document in London and print it out in New York and Tokyo. The accounting software will need to determine how the cost of this is allocated. Different users will have different usage rights to the software. The MFDs will need to identify users and some will use cards, other PIN numbers, and other biometric scans. Getting everything to work together, and giving everyone a good user experience is non-trivial, which is why there is a need for Select, which has specialised in this area for many years. It has taken a long time, but Select’s financial performance is now improving and sales are increasing.

Payment system at Cardiff University

Last Updated: Tuesday, August 18, 2015

Telegesis

Telegesis

Telegesis - Investment Information for OT2
Date of First Investment Dec 2003
Total Investment to Date £7,824
Total return on holding - 2015 £355,000
Telegesis - Investment Information for OT3
Date of First Investment Oct 2003
Total Investment to Date £147,019
Total return on holding - 2015 £3,330,000
Telegesis - Investment Information for OT4
Date of First Investment Dec 2005
Total Investment to Date £230,520
Total return on holding - 2015 £1,620,000

Telegesis designs, manufactures and supplies Zigbee modules. Zigbee is a communications protocol, in the same way that Bluetooth is a communications protocol. Bluetooth is for sending large volumes of data over short distances and is power hungry. Zigbee is for sending small amounts of data over larger distances with very low power consumption. Each Zigbee device can communicate with up to 64,000 other devices up to 1km apart, and the devices automatically configure themselves into a mesh network, with the data hopping from node to node.

The company has been making very good progress with increasing sales year on year and an expanding customer base all over the world.

Telegesis has joined Thread, a home automation group founded by Google. The objective is to be able to automate everything in the home, using the internet of things. If Zigbee becomes the protocol, then Telegesis will be well-placed to benefit.

Telegesis was acquired by Silicon Laboratories UK Ltd on 20 Nov 2015.

The new Zigbee modules

Last Updated: Wednesday, January 14, 2016

Share Price Information and RNS Announcements

For information from the London Stock Exchange on the share price for OT2 and all RNS announcements, please click on the image below: