IP Group's Ultrahaptics raises £35m in new funding round

Intellectual property-based business developer IP Group said on Monday that its portfolio company Ultrahaptics, which uses haptics technology to create sensations of touch in mid-air, had completed a £35.0m fundraising.

The FTSE 250 firm said the round, which was oversubscribed, was led by Mayfair Equity Partners, with additional new investors including Australian superannuation fund Hostplus, with further participation from existing shareholders IP Group, Woodford Investment, Cornes Technology and Dolby Family Ventures.

It explained that the new funds would enable Ultrahaptics to further develop and commercialise its revolutionary haptic technology in next generation user interfaces and experiences.

IP Group held a direct undiluted beneficial stake of 21.1% in Ultrahaptics, and was reviewing the carrying value of the asset as part of its year-end audit.

The company also noted that IP Venture Fund II had an 8.0% stake, with IP Group and IP Venture Fund II committing £0.4m and £0.2m respectively to the fundraising.

Prior to the fundraising, they had invested £6.0m and £1.6m respectively in Ultrahaptics.

“We are delighted to welcome such high-quality new investors to join us in supporting the next stage of growth at Ultrahaptics,” said IP Group managing partner of technology Dr Mark Reilly.

“The company is yet another example of a top UK 'deep tech' start-up nurtured from day one by IP Group.”

Ultrahaptics, which was based on technology developed at the University of Bristol, was reportedly currently engaged with blue-chip customers across key verticals such as automotive, where it had developed concept vehicles with Bosch and Harman, digital signage, location-based entertainment, industrial controls, medical interfaces, virtual reality games, and augmented reality / virtual reality enterprise applications.

The company also supported the international academic community through a programme designed to enable additional haptics research and development.

IP Group said the funding round was advised by its 100%-owned FCA-authorised subsidiary IP Capital.