The University of Edinburgh has approved a £6million recapitalisation of its in-house venture capital fund Old College Capital (OCC), which provides growth and development finance into companies associated with the university.

The fund, established in 2011 with support from the university and its endowment, works in partnership with investors interested in businesses with high growth potential.

Currently the fund invests and adopts a co-investment model, working alongside venture capitalists, angel groups and corporate investors. OCC has an independent investment committee and operates on a fully commercial basis.

Hamish Mair, chair of the committee, said: "External investors have welcomed the fund and take confidence that the university is backing its own companies and sharing the risk. OCC's investment partners can work with a trusted partner with the ability to follow-on its investments and benefit from the university's in-depth knowledge of our investee businesses."

In the past four years OCC has invested £2m into ten student start-ups and academic spin-outs across a broad range of sectors. This investment leveraged a further £18m from private sector commercial co-investors. The recapitalisation takes the total fund to £8m.

Hugh Edmiston, the university's director of corporate services, said: "The reinvestment demonstrates a continued commitment by the university and its endowment to back growth businesses from the university's ecosystem by providing essential capital at an exciting and critical point in their development."