Technology developer Qinetiq has set up a venture fund to specifically pump money into seven of its projects. The fund has been set up with Coller Capital, an investor in corporate venture assets.

The spin-outs being targeted with the fund includes bistable LCD firm ZBD Displays, low-cost RFID technology firm Omni-ID, antenna for mobile networks Quintel Technology, nanomaterials developer Qinetiq Nanomaterials, and 4D sea bed reservoir monitoring systems company Stingray Geophysical.

The fund will have an initial £40m and Qinetiq and Coller will each contribute up to £20m of follow on funding. The fund will be owned up to 75 per cent by Qinetiq, depending on the performance of the fund.

Qinetiq said the fund would allow its venture team to focus on incubating core businesses and to develop a further Qinetiq spin-out ventures.

Hal Kruth, chairman of Qinetiq Ventures said: "The new fund will allow us to focus Qinetiq's internal resources more effectively on creating a steady pipeline of additional venture opportunities."

The other firms in the fund are Aurix, a real-time audio mining firm and Metalysis, which manufactures high value metals from low-cost oxides.