By Thorold Barker

Brainspark, the internet incubator fund, said it expected to start exiting some of its early investments within the next six months.

If the move is successful it would crystalise the value of some of Brainspark's 16 "cubs" - as it describes the companies it invests in - and could help bolster investor confidence in the group.

The shares rose 9½p to 104½p on Wednesday, down from 132½p in April.

Stewart Dodd, chief executive, said: "Three to six months out we are set to sell one company to a later stage venture capitalist, one through an IPO, and one through a trade sale."

His comments came as the group unveiled the first results since its flotation in April. The net asset value at the end of June was unchanged at 22p a share because of the £500,000 monthly cost of running the business. Pre-tax losses for the six-month period were £5.95m (£561,000).

The cash balance was £14m. Mr Dodd said activity among early stage investors had begun to pick up in the past few months and that cash was not an issue as the company could raise further funds if required.

The company also revealed plans to launch an offshoot in Cambridge to take advantage of the boom in internet infrastructure and wireless applications.

Brainspark is refocusing its business away from business-to-consumer start-ups towards the creation of internet companies from the assets of big corporations.

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