On 22 September, Kaunas University of Technology (KTU) and venture capital firm Practica Capital signed a cooperation agreement on the development and commercialisation of innovative products and services as well as on investment in start-up companies, especially those in the field of technology, and in the development of their businesses. In order have closer relations Practica Capital will open an office in the SANTAKA Valley, the integrated science, studies and business centre at KTU campus.
Guarantee of Success – Joint Work
The National Innovation and Business Centre of KTU (Lith. NIVC) is always looking for cooperation opportunities with Lithuanian and foreign investors that have experience in investing in products generated by scientists or in young companies established by students.
‘There are certainly not many venture capital companies that would decide to invest in start-up companies established in the University because in practice this means that you are investing in an idea or in an incomplete technology and business success depends solely on the NIVC specialists and the general experience and achievements of investors. We have been cooperating with Practica Capital for almost a year and we are now heading towards real investment projects,’ Almantas Danilevičius, the director of the Centre (NIVC) said.
The company have participated as consultants and investors in events designated for start-ups, namely, in Startup Weekend and Startup Sauna.
LTL 100 000 To Be Invested
The venture capital company has awarded a scholarship worth LTL 5 000 to the further development and improvement of a unique product named Desys generated by Mindaugas Badokas, a student of Kaunas University of Technology. The product is a Wi-Fi motion sensor meant for the performing arts – Desys transforms the gestures and movements of a performer into sounds; the device itself may be seen as a new generation interactive musical instrument adaptable in modern theatre, dance and musical performances.
The investors interested in Desys are planning to invest a further LTL 100 000 in the near future and by the end of this year to present the device on the crowd funding websites, which are becoming more and more popular worldwide.
‘It is just one more important step in developing, commercialising and realising innovative products and services created by start-up companies in order to promote mentoring of university students and scientists. Cooperation with Practica Capital will contribute to the improvement of study programmes and to the organisation of student internships,’ – said Petras Baršauskas, the rector of KTU.
Anatolijus Faktorovičius and Donatas Keras – partners of Practica Capital – emphasised that work with KTU is significant both to businesses in the early stages and for closer cooperation between business and science in creating added value.
‘We have seen many businesses and teams starting here. Information technologies, robotics, mechatronics, medical devices, avionics and all inter-disciplinary fields have potential, therefore, we want to contribute to businesses in these fields at their very beginning and to be open to the whole University community,’ – Mr. Faktorovičius said.
About Practica Capital:
Practica Capital is a venture capital firm established in 2011 by investment professionals and entrepreneurs who exited their businesses. The firm manages EUR 6 million Practica Seed Capital fund and EUR 15.7 million Practica Venture Capital fund, both established under the JEREMIE initiative, managed by EIF and financed from the EU Structural Funds under 2007-2013 Economic Growth Operational Programme of Lithuania. Funds provide early- and later-stage financing to Lithuanian SMEs focusing on innovative and high-growth potential businesses. Practica Capital also runs business accelerator Startup.lt, which helps young businesses to realise high growth potential. By the end of August 2014, Practica Capital signed 31 investment for EUR 11.3 million in 27 portfolio companies from different sectors.
