FTSE 250-listed IP Group, the intellectual property commercialisation company which develops technology innovations primarily from its partner universities, has reported that portfolio company Xeros, has completed 10m pounds fundraising from existing and new investors.

Invesco Perpetual managed funds led the round, investing £6.0m in Xeros. Directors and existing investors in Xeros invested £4.0m, including IP Group, Entrepreneurs Fund, Enterprise Ventures' RisingStars II Fund, Finance Yorkshire, and Parkwalk Advisors.

The funding will be used to accelerate the roll-out of Xeros' commercial laundry cleaning system and finalise the development of a household system to replace conventional washing machines, IP Group said.

Following completion of the fundraising, IP Group holds a direct beneficial stake of 14.8% in Xeros valued at £3.2m, and the fundraising has resulted in a fair value gain of £0.9m.

In addition to the group's direct beneficial holding, a further 8.3% interest is held by IP Venture Fund.

The $100bn global laundry industry is the initial market for the Xeros polymer bead cleaning system.

Alan Aubrey, the Chief Executive Officer (CEO) of IP Group, said: "It is really encouraging to see Xeros receive such strong support and endorsement from both existing and new investors. Having backed Xeros from research out of the University of Leeds and supported it since then, it is exciting to see the business maturing and commencing roll-out."

Bill Westwater, CEO of Xeros, added: "We have a big but simple idea: to convert the traditional world of aqueous washing to Xeros bead cleaning. Our superior cleaning method delivers a whole variety of benefits to people, businesses and the environment. This fundraise represents another milestone in our journey towards making that idea a reality."

IP Group's portfolio comprises holdings in over 60 companies and includes early stage to mature businesses.

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