Raising equity for a new technology development project
Aeristech Ltd (www.aeristech.co.uk) are a high technology company providing technical solutions to reduce emissions and increase power efficiency in the key industrial sectors of automotive vehicles and power generation. It has “game changing” proprietary patented technology using ultra high speed motors replace mechanical turbochargers, allow greater engine downsizing, and materially eliminate particulates. The heart of the solution is the ability to control and use the world’s fastest and fastest accelerating permanent magnet motors to provide substantial power on demand, eliminating perceived turbo lag... even from rest.
We required £500k by 1st quarter 2010, a further £500k in the 3rd quarter 2010 and £500k in 2011 for continued development.
Struggling to raise funding as an early stage pre-revenue technology company, we recognized we would need both Angel and structured fund investment able and prepared to go a 3-year journey to reach commercialisation.
We approached Minerva (The UWSP Business Angel Network) whose investor group, following vigorous investigation not only invested £120k, but also found an investor with significant sector expertise who played an active role throughout 2010 in - leveraging the £1m investment needed from a number of other funding sources and helping to secure the first interested partner.
The monies raised in 2010 enabled sufficient progress in technology development to secure £500k in grant monies in 2011. We now employ 14 highly skilled people, are well advanced in trials with a number of collaborative partners in target sectors, and are moving purposely towards commercialisation.
We had a strong IP and a good technical team and board but needed a professional in early stage funding. Securing a collaborative partner to both get past some key technical proof points and provide confidence to the investors was also critical.
To raise such a significant investment the company took professional advice and constructed both a detailed Business Plan and funding strategy and found an investor with the right sector knowledge and contacts to help accelerate progress at a key time.