-
Share
DIGIT Deal RoundUp: January 2023
This year’s first edition of the DIGIT Deal Roundup sees Scotland starting the year off strong with funding for start-ups and projects across the nation.
Funding and Investment
Scottish Enterprise
£150,000 of funding awarded by the Scottish Enterprise will go towards two university projects focusing on green energy and renewables.
The High Growth Spin Out funding is directed at products and companies formed from university work and aims to support new research and technology to strengthen Scotland’s innovative economy.
Jane Martin managing director of innovation and investment at Scottish Enterprise said: “Our high growth spin out programme is proven to help leading academics to turn innovative ideas into business ventures by providing investment and advice to start-up, commercialise and scale.
The University of Edinburgh will receive £75,000 to support their heat exchange technology project for marine environments called Seawarm.
A further £75,000 will be awarded to the University of Aberdeen’s project LDC which is developing current circuit breaker systems for renewable energy projects.
Everse
Aberdeen-based digital company Eserve has announced the completion of an investment deal with Vespa Capital LLP.
Eserve’s engineering know-how and technology is seeking to change the way companies maintain their complex industrial assests, using the 3D digital twin software AS-TEG.
The deal will enable Eserve to continue to drive their international growth, augment their team and expand their capabiltities in AS-TEG.
Dan Millard, founder and CEO of Eserv said: “After performing a strategic review we set out to find an investment partner that would help strengthen our balance sheet to super charge our international growth plan, as well as further invest into our staff and technology development.”
Khidhr Shafiq, Director at Vespa Capital said: “Dan and the team at Eserv have developed an impressive and innovative solution that has a proven track record of providing a quick positive return on investment when implemented; this is driving the rapid adoption of digital twin technology.”
Pufferfish
Pufferfish, which uses its spherical displays to create immersive solutions for clients including Google, NASA, BBC, Fortum, Amazon Prime and Aramco, has exceeded its £600,000 target in the latest funding round.
The company will use the funding to expedite its growth plans in the market for interactive, multi-sensory and immersive spherical display experiences.
The bulk of the funding was secured from existing investors, including Scottish Enterprise and Par Equity, with additional funding coming from a small group of new private investors.
The Edinburgh-based tech firm will use the fresh injection of capital to maximise commercial opportunities from the ongoing revolution in the digital display market, particularly in supporting its Go To Market activities, product innovation and exciting new product launches.
Elaine Van Der Berg said: “We have the latest funding now secured and the beginnings of a new leadership team at the helm. With advances in technology fuelling the demand for multi-sensory, immersive, audio-visual experiences across a range of sectors, from art and entertainment to science and education, Pufferfish is primed and ready to continue to bolster its position as the market-leading end-to-end provider of spherical interactive displays and services.”
PneumoWave
PneumoWave, the digital health company, has closed on a £7.5 million Series A financing deal, hoping to enable clinical validation and regulatory submission of its biosensor technology platform.
The round comprises £5.2 million equity from new investors Scottish National Investment Bank, as welll as £2.3 million from existing investors Scottish Enterprise, IIG, Equity Gap, Alba Equity, and London and Scottish Investment Partners.
The HealthTech company specialises in remote wireless diagnosing and monitoring of potentially fatal respiratory changes in high-risk patient groups.
Dr. Bruce Henderson, co-founder and CEO of PneumoWave said: “Working with leading international centres, we will now be able to accelerate our clinical validation leading to a planned regulatory submission in early 2024.”
The AI technology of PneumoWave’s wearable biosensors can alert carers and emergency medical services when a wearer’s health is at risk and in need of urgent assistance.
“We believe our platform will provide an invaluable tool for increasing the effectiveness of opioid use disorder treatment programmes as well as respiratory disorders in general,” Henderson added.
Par Equity
Edinburgh-based VC Par Equity has invested £38 million in early-stage technology businesses across the North of the UK in 2022, backing 27 companies in total, ten of which were new additions to the portfolio.
Continuing to build out its capabilities to lead and support Seed and Series A funding rounds, Par Equity focuses on business-to-business IP-rich technology solutions with industry transforming potential, typically in climate and health tech fields as well as industry 4.0.
Four of the new investments were based in Scotland, with the rest of them spread across the North of the UK. A further company, StretchSense, which has its headquarters in New Zealand, raised £4.2m to build out its European operations from Scotland.
Notable investments in Scotland include in Integrated Graphene, a 3D graphene foam output based in Stirling, and Novosound, the ultrasound sensor specialist based in Glasgow.
Andrew Noble, Partner at Par Equity, said: “These companies are reflective of the types of things we get excited about. They have developed game-changing and hard-to-replicate technologies with global applicability.
“As an economic zone, the North of the UK is the equivalent of the 8th largest country in Europe and the 20th largest in the world. We see enormous opportunity here. Our world-class academic institutions and technology hubs are awash with innovation and there’s a fantastic pipeline of talent emerging across the North of the UK.”
Foresight Group
Foresight Group has announced the launch of a new fund dedicated to investment in Scotland.
The first close, at more than £60m, was supported by cornerstone commitments from Strathclyde Pension Fund and British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank.
This is Foresight’s eleventh regional fund, replicating the successful strategy already deployed in other regions of the UK. It is also Foresight’s second fund dedicated to Scotland, having launched the £32m Foresight Scottish Growth Fund with the support of the Scottish Government in 2019.
The Fund will support the local Scottish economy and deliver a positive social impact across Scotland, creating high-quality, local jobs. Since 2016, Foresight’s regional funds have created thousands of jobs in regions throughout the UK.
Matt Smith, Partner at Foresight Group, commented: “We are very pleased to be launching this Fund in partnership with British Business Investments and Strathclyde Pension Fund. We look forward to delivering a positive impact and working with exciting growth SMEs throughout Scotland to create value and jobs.”
Gigged.AI
Gigged.AI is set to scale its HR tech as companies address hiring freezes and staff retention.
The company has also secured its latest investment, a £1.6m seed round led by Par Equity alongside existing investor Techstart Ventures, Edinburgh-based strategic design firm Nile HQ, and a number of leading entrepreneurs.
Glasgow-headquartered startup Gigged.AI deploys AI-matching algorithms to help businesses source and onboard on-demand tech talent, while enabling SMEs and larger corporates to retain existing staff. Clients signed up to the platform include the BBC, ATOS, Webhelp, Skyscanner, FanDuel, and the University of Edinburgh.
The company plans to grow its team over the next twelve months, remotely in addition to its Glasgow and London hubs, and has a number of partnerships and contract wins in the pipeline this year.
Gigged.AI’s CEO Wilson identifies hiring in a time of recession as a major theme in 2023: “We used to talk about the ‘war for talent’, when demand outstripped supply, and now we’re in a phase where there are lay-offs and hiring freezes, particularly across the global technology sector, so this is something we are working really closely with clients on at the moment.”
Methelios
Metahelios, the Glasgow-based start up specialising in advanced imaging technology, is hoping to send its cameras off to space after securing funds from the British Business Bank’s Start Up Loans programme.
Launched in January 2022 by metasurface physicists Charles Altuzarra and Yash Shah, the company has created a first-of-its-kind long-distance camera that can distinguish between different materials from a still image, with potential benefits to a range of sectors.
To prove the capabilities of the remote imaging technology, the pair are in talks with the UK Space Agency to join one of this year’s rocket launches from British soil.
Dr Charles Altuzarra, co-Founder and CEO of Metahelios, said: “It has always been a dream to be involved in a space mission and the development of this imaging technology could soon see that become a reality.”
Charles and Yash recently each received a £25,000 loan through the programme, with the support of Transmit Startups. The combined £50,000 finance will enable them to invest in manufacturing and testing prototypes, as well as growing the team.
AstroAgency
Edinburgh-based AstroAgency has secured a further three projects with the UK Space Agency, following along from their current partnership.
AstroAgency was founded in 2019 as a full service marketing agency dedicated to space, offering PR and media relations, content creation, digital and offline promotions and branding services.
Currently, the company is working along side the UK Space Agency to promote the benefits of the Clearing the LEO Environment with Active Removal (CLEAR) mission, led by ClearSpace, to remove defunct satellites from orbit.
They have also won new private sector contracts with leading global space consultancy Euroconsult, following a competitive tender process involving several different marketing agencies, and onboarded space data firm Earthwave for a short-term project to promote its latest products to the US market.
The positive news comes after a tumultuous year for AstroAgengy, which faced turmoil due to the Russian invasion of Ukraine. A number of the firm’s staff based in the country were caught up in the conflict, including Chief Operations Officer Daria Filichkina, who fled the country with her young son in April last year.
Antonio Duduianu, AstroAgency’s Senior Project Manager and a recent recipient of the Sir Arthur Clarke Award from the British Interplanetary Society, stated: “This is a tremendous achievement following what was an emotionally challenging year for us and it sets us up well for our fourth year of operations and international expansion targets.
Blackford Analysis
Edinburgh-based AI provider, Blackford Analysis, has been acquired by Bayer, a global life science company, in a bid to bring its medical AI imaging technology to a wider audience.
Spun out from the University of Edinburgh in 2010, Blackford has a presence in the UK and the US focused on providing healthcare providers with tailored tools and services to unlock the value of medical imaging AI, driving efficiencies and improving patient outcomes.
Blackford founder and CEO, Ben Panter, said: “Blackford exists to improve the lives of patients and populations by unlocking the adoption and benefits of medical imaging AI and we explored a number of funding options to expand the company to deliver this mission.”
Following the acquisition, Blackford will continue to operate as an independent organisation on an arm’s-length basis to preserve its entrepreneurial culture. It will remain headquartered in Scotland, and no changes in management or staff are expected.
“Adding Blackford and its AI technology to our radiology portfolio secures Bayer an excellent position in the fastest growing segment within the overall global radiology industry,” Stefan Oelrich, Member of the Board of Management, Bayer AG, and President of Bayer’s Pharmaceutical Division, said.
Tech Nation and Barclays Eagle Labs
It has been confirmed that Tech Nation will no longer be the recipient of the £12.09 million Digital Growth Grant after a six-year tenureship.
Barclays Eagle Labs has been awarded the grant intended to boost small and scaling tech businesses throughout the UK following an open competition and subsequent assessment by an independent panel.
Minister for Tech and the Digital Economy, Paul Scully, said: “We want to unlock the potential of the next generation of start-ups and scale-ups and boost tech businesses in all corners of the country.
“Barclays Eagle Labs are digital industry experts and will help tens of thousands of tech firms and founders to achieve their dreams and create jobs and economic growth.
Amanda Allan, Director of Barclays Eagle Labs, said: “Eagle Labs’ vision is to make the UK tech sector an engine for growth and for the UK to be the best place in the world to start and grow a tech business.”
In a response put out to media, Tech Nation stated that ‘in anticipation of the Government’s decision to award the Digital Growth Grant to another party, we have been working around the clock to secure our future and continue delivering for UK scaleups.’
Since then, Tech Nation has declared it will discontinue its operations.
Waire Health
Scottish startup Waire Health is set to scale its sensor technology that is designed to improve remote ward monitoring and reduce hospital readmissions, following an investment from St Andrews-based Eos Advisory, a £2 million round secured alongside Scottish Enterprise.
The funding will see the company grow its management team, production, and product development capabilities, while enabling Waire Health to accelerate expansion in global markets including North America.
Waire Health’s remote patient monitoring device, C-Detect, operates in hospitals and homes autonomously, reducing costs and improving outcomes through continuous real-time monitoring and advanced artificial intelligence. The company sells platform agnostic sensors primarily to healthcare technology platform providers, who in turn sell into hospitals and other healthcare organisations.
Kathrina Skinner, COO, Waire Health, said: “One of the things we’re proud of is our Scottish heritage, and the fact that we develop and manufacture the product here, something that we were effectively forced to do during the pandemic. And the name of the company, ‘Waire’, actually comes from the Scottish Gaelic language where ‘aire’ means care, concern, and responsibility.”
UK Space Agency
The UK Space Agency has announced £50 million of funding for innovative projects that will supercharge the UK’s satellite communications industry.
The funding, part of the European Space Agency (ESA) Advanced Research in Telecommunications Services (ARTES) programme, is available for a range of projects, such as developing new satellite constellations, ground, and end-to-end systems.
“Developing UK space capabilities and maximising commercial opportunities are key to the National Space Strategy, as part of our plans to become a leading power in space and build on a sector already worth £16.5 billion to the UK economy,” Science Minister George Freeman said.
UK Space Agency CEO Dr Paul Bate said: “This is an exciting time to be involved in the satellite communications industry as the world increases its dependence on these services to manage business, travel, security, infrastructure, connectivity, and more.
“This funding will help UK companies that have the right expertise and ambition to become global players in this market and lead on ground-breaking technologies that will enhance the wider UK space sector, create jobs and generate further investment.”
Scottish EDGE
Scottish EDGE has received a new boost after a number of substantial EDGE Pledges were recently honoured, totalling over £125,000.
Over the past nine years, Scottish EDGE has invested over £20 million into businesses with high-growth potential.
To ensure its long-term sustainability, the organisation invites previous winners to sign up to the EDGE Pledge to contribute a minimum of 1% of exit proceeds back into the fund.
The EDGE initiative encourages established entrepreneurs to invest in the success of fellow upcoming talent.
Scottish EDGE has a total of 168 pledges currently active from former winners dating back to the first round of the competition, including Appointed, Novosound, Enterobiotix and Ooni Pizza Ovens.
Evelyn McDonald, CEO of Scottish EDGE added: “One of the bedrock principles of the Scottish EDGE fund is to encourage recipients to give back to the fund, so that the entrepreneurs of the future can continue to benefit.
“We are thrilled that several generous pledges have recently been honoured, which will enable more businesses to continue the positive cycle of creativity and innovation that we have been proudly championing for almost a decade.”
UK Roads
Future roads could be built using asphalt made from grass cuttings and ‘carbon capturing’ cement, supported by £30 million government funding awarded to seven net zero projects.
The projects, spread across the UK, (specifically, England) from Lanarkshire to Devon, have been awarded funding through the Live Labs 2: Decarbonising Local Roads competition.
The programme supports projects led by local highways authorities focused on tackling the long-term decarbonisation of highway infrastructure, such as streetlights, and transforming local authorities’ approach to decarbonising roads.
Roads Minister Richard Holden said: “The UK is a world leader in technology and innovation and we must use that strength to drive decarbonisation and the next generation of high tech jobs that go alongside it.
“We are supporting this vital agenda to help level-up through £30 million funding for ground-breaking projects and boosting regional connections to support growth.
“The government is determined to create good, well paid jobs – via innovation and investment across the UK – as we accelerate the road to net zero.”
Get all the latest news from DIGIT direct to your inbox
Our newsletter covers the latest technology and IT news from Scotland and beyond, as well as in-depth features and exclusive interviews with leading figures and rising stars.
To subscribe, click here.
