Funds may support a wide range of activities that will develop the commercialisation of the idea or technology. The following list gives a few examples of eligible items and activities: Market research/analysis; equipment; external consultant's fees; staff costs; travel costs; consumables; laboratory work; development research; business planning; indirect costs; freedom to operate searches and due diligence costs.
The maximum investment in any project is £250k in the first instance. Typically investments will be in the range £10k to £100k. Smaller investments or 'Pathfinder' investments which total around £25k for a single project may be needed in order to: conduct feasibility studies; maintain intellectual property portfolios; undertake market research; produce viable business plans; or carry out commercial assessments. Large investments of £25k to £200k would either lead to a licence deal or lead to the eventual formation of a spin-out company. The funds will be advanced in stages, linked to the achievement of agreed commercial milestones.
It is recognised that indirect costs are real costs and therefore if these are not paid then the project is effectively being subsidised by the University concerned. The fund will accept indirect costs as an eligible cost. The negotiation on equity positions for the fund and the other partners will take into account the relative risk taken by partners as the investment develops. A university may at its discretion secure part of its equity position through waiving or reducing its indirect cost position.
The Lachesis Fund encourages proposals that have co-financing or co-funding to supplement initial Lachesis investment. The Fund Manager, Spark, an established venture capital company, may, through its other VC funds, co-invest alongside or following the Lachesis Fund.
