PowerPhotonic Ltd, a high tech spin out from Heriot Watt University, has secured funding of more than £½ million in a deal led by Archangel Informal Investment, which syndicated part of the equity to angel syndicate TRI Cap. PowerPhotonic Ltd has developed world-leading micro-optical fabrication technology and the transaction, which includes SMART Scotland funding, enables the company to compete in high power industrial laser and optical communications markets valued at $2.6 billion per annum.
PowerPhotonic Ltd is the brainchild of Heriot Watt University team Dr Roy McBride, Professor Denis Hall and Professor Howard Baker, who all have extensive experience in the field of lasers and photonics technologies for industrial applications. Nigel Hedley (Chairman) and Clovis Younger (NXD) have been introduced by Archangel and the executive team is joined by Philip McNaull of Heriot Watt University, who brings experience in strategic planning and financial management.
John Waddell, CEO of Edinburgh-based Archangel commented: “Roy came to us with an outline plan over a year ago and we worked with him, his colleagues and with corporate finance specialists DC Consulting to build a suitable proposal and funding package. I am pleased to have had the opportunity to work with our friends at TRI Cap on this investment.”
“This is a further example of our university sector’s strength in developing world-leading technologies which have clear commercial applications and value,” says Angus Hay of DC Consulting. “Scotland’s venture capital community is very interested in supporting this type of venture, which has already proven itself in an extremely vibrant marketplace. By working alongside Scottish Enterprise National’s High Growth Unit we have been able to draw upon public sector support to conclude the investment round for PowerPhotonic.”
Commenting on the deal, PowerPhotonic MD Dr Roy McBride said: “PowerPhotonic is operating on a worldwide stage, with high levels of interest from international manufacturers of high power lasers, which recognise the increased efficiency and market share that PowerPhotonic’s technology can bring. This funding enables us to invest in new hardware as well as giving us the leverage to exploit the markets that we have already begun to open up.
“Our technology is unique and will have a major impact on the global market for high power lasers. As a Scottish company, funded by Scottish investors and with a world-class team, we will be leading the way.”
Robert Dick, chairman of Borders-based syndicate TRI Cap, said: “This is an exciting investment for our members and we are delighted to be associated with Archangel in the funding of this potentially important venture. PowerPhotonic has demonstrated that its technology has global reach and we look forward to working with the team to take the business forward.”
Issued on behalf of DC Consulting by Eileen Prior, Prior PR. For further information contact Eileen on 01721 729322, 07802 180 412 or eileen@priorpr.co.uk
NOTES TO EDITORS
Archangel Informal Investment is Scotland’s leading Business Angel Syndicate. Originally formed in 1992 and based in Edinburgh, the syndicate now comprises around 80 investor members and invests c. £9m per year in early stage Scottish companies. www.archangelsonline.com
DC Consulting specialises in corporate finance and strategic business advice in Scotland. Headed by a board of four directors, it is a fast-growing corporate finance adviser, providing innovative financial solutions for established companies and new technology business opportunities. www.dcconsult.co.uk
Tweed Renaissance Investors Capital (TRI Cap) is a business angel syndicate based in the Scottish Borders, with the intention of investing in growth businesses in the Borders and beyond. Its founders include some of the Borders’ leading business people who, between them, have many years’ experience of building and investing in enterprises in the Borders and further afield. The syndicate has investments of more than £3 million under its belt. www.tricapital.co.uk