Welcome to the latest edition of the DIGIT Deal Roundup.

While Scotland’s tech sector enjoyed some much-deserved time off over the holiday period, that isn’t to say December was without exciting news relating to funding, deals, and more.

For a recap on those standout stories, here’s our round-up.

Funding and Investments

Scotland Spacetech Firms Get £6.7M Funding Boost

Two Scotland-based space firms have secured a funding boost, courtesy of the UK Space Agency, to develop their launch technologies in a sustainable way.

Shetland-based HyImpulse, a launch company working with SaxaVord Spaceport in Unst, and Forres-headquartered Orbex, a launch company working with Sutherland Spaceport, will receive around £6.7 million between them.

Orbex will get over £3.3 million to undertake activities to ensure its work is environmentally sustainable. This includes installing a green propellant plant to manufacture a clean propane, produced from renewable feedstocks such as plant and vegetable waste material.

Meanwhile, HyImpulse UK will receive nearly £3.4 million to undertake its Hybrid Propulsion Test Programme ahead of the proposed launch of its launch vehicle, SL1, from SaxaVord Spaceport. By 2030, HyImpulse aims to achieve carbon neutral operations, including the use of synthesised paraffin fuel and using renewable energy sources.

Read more here.

£3.3M Plugged Into the Medical Device Manufacturing Centre

The Medical Device Manufacturing Centre (MDMC) has been awarded £3.35 million in additional funding to continue developing medical device innovation and improve industry sustainability.

The MDMC is a consortium of Scottish universities, including Heriot-Watt University—where it’s headquartered—as well as the University of Edinburgh, University of Glasgow, Robert Gordon University, and the University of Dundee.

The Centre provides medical device developers and manufacturers with advice, technical expertise, and the necessary facilities to help translate medical device concepts into commercial products.

“This funding will not only drive innovation across the healthcare landscape, but help produce more sustainable medical devices,” said the wellbeing economy secretary, Neil Gray.

Learn more here.

£1.5M Claimed at Scottish EDGE Awards

£1.5 million was invested into 38 early-stage, high-growth businesses at the Scottish EDGE Awards.

The investments were dished out during the 22nd round of the Scottish EDGE awards, which took place in Glasgow for the first time since 2019. It was hosted by the Royal Bank of Scotland, and supported by The Hunter Foundation, the Scottish Government, and Scottish Enterprise.

A notable tech company that won funding was Connekt, the electric vehicle (EV) charging network startup out of Ayr which claimed £100,000. The startup is hoping to make the transition to EVs seamless by offering charging solutions at workplaces and destinations, to integrate charging with the lifestyles of drivers, all while providing customer service on a local level with a privately-owned public charging network.

“As supporters of the Net Zero category, we’d like to extend special congratulations to Connekt Charging. Their work in creating an extensive and reliable charging network has the potential to be transformational,” said Judith Cruickshank, MD commercial mid-market at the Royal Bank of Scotland.

Discover more here.

Heriot-Watt Researcher Gets Nearly £1M for Optical Fibre Innovation

A Heriot-Watt University researcher has been awarded almost £1 million in funding to develop a mass manufacturing process for a type of hyper-fast optical fibre that could replace conventional telecoms networks.

Dr Calum Ross secured the funding award of £970,000 through the Future Leaders Fellowships programme of UKRI, the UK’s national funding agency for research and innovation.

Dr Ross has spent two years developing an automated process that would allow the mass production of hollow-core fibre — a type of optical fibre that carries light in air about 50% faster than conventional solid glass optical fibre.

“Hollow-core fibre is currently made using a manual process that involves stacking fibre systems by hand – so it can’t be manufactured at scale,” he explained. “I’ve developed a laser-based fabrication approach that is automated and allows me to make a fibre that can be mass manufactured and can also have any internal structure.”

Read more here.

Scots Medtech Startup Secures New Funding for Robotic Glove

Bioliberty, the Scots medtech startup which has created a soft robotic glove to help with the rehabilitation of stroke patients, has received almost half a million pounds in new funding to accelerate its product to market.

The firm secured £435,000 from the Biomedical Catalyst, Innovate UK’s flagship grant funding mechanism to transform innovative ideas into commercially viable businesses.

The Edinburgh-based company’s robotic glove works by assisting a patient to open and close their hand, an action which can be severely limited following a stroke.

“With this newfound funding, we’re poised to accelerate trials and expedite our market launch,” said Bioliberty co-founder, Conan Bradley.

Learn more here.

Mint Ventures Funds Debt-Fighting Scots AI Company

Women-led angel investment group, Mint Ventures, has provided funding to Inicio AI, the financial support company based in Scotland and the Midlands.

The strategic partnership looks to aid the AI company in its next phase of product development as the AI landscape continues to transform.

Led by CEO Rachel Curtis, Inicio AI uses artificial intelligence to support those struggling with debt.

The investment, which has not been disclosed, reflects the shared commitment between Mint Ventures and Inicio AI to push the boundaries of innovation, promote women investors and founders, and advance social purposes.

Gillian Fleming, CEO of Mint Ventures, said: “We are extremely pleased to be supporting Inicio AI to take them to the next level and align our members collective expertise as well as bring more diversity to the investment base.”

Discover more here.

Edinburgh Uni Wins Contract for Lithium Fusion Tech

The University of Edinburgh and four others organisations have secured contracts to develop lithium technology for fusion energy.

The recipients have received contracts ranging between £700,000 and £1.5 million, totalling £7.4m, from the United Kingdom Atomic Energy Authority’s (UKAEA) Fusion Industry Programme.

The Fusion Industry Programme challenge, “Realising the potential of lithium in an economic, sustainable and scalable fusion energy fuel-cycle,” was launched in early 2023. It was created to help encourage organisations to create and evaluate prototypes of lithium technology.

Learn more here.

Acquisitions

Iomart Group Acquires Accesspoint Technologies

Iomart Group, the cloud and IT services solutions provider, has announced it will fully acquire all assets of London-based Accesspoint Technologies.

The IT hosting firm has dealt mainly with the UK legal industry since 2009, providing an array of managed services, ranging from software licensing, infrastructure hosting, and security management, to business continuity services and communications provisioning.

Accesspoint generated £3.8m yearly revenue by September 2023, with an adjusted earnings of £800,000. The IT firm is set to provide iomart with a refined industry expertise from its strong reputation in the legal sector, providing insight into the key sector.

£4.5m, the initial consideration, will be paid in cash on a debt free basis, upon completion. There will be a potential further £500,000 that can be payable on particular achievements made after the acquisition.

Read more here.