Investment money has flooded in for a tidal energy project which has raised funds under the Seed Enterprise Investment Scheme (SEIS).
SEIS is a tax effective way for investors to back new start-ups and young companies wanting to develop, and that proved to be the case when Sustainable Marine Energy (SME) wanted backers for its innovative technology.
The technology, known as PLAT-O, is designed to work in risky locations in deep water where two-thirds of the UK’s tidal stream is found.
SME has now completed a round of SEIS funding to raise £150,000 along with another £133,000 from a London Business Angels (LBA) syndicate.
The Department of Energy and Climate Change Energy Entrepreneurs Fund has also made a contribution.
The cash raised through SEIS will now see a prototype built and trialled this year.
The chief executive of London Business Angels, Anthony Clarke, said that the organisation has also been able to introduce a lead ‘angel’ who will be able to bring their experience to the project and help make it a success.
He added: “Our SEIS 2012 fund has been able to make its first of six planned investments – indeed investors had to be scaled back given the strong interest in participating in the round.”
Anthony Davis, SME’s commercial director, said: “We are delighted to have the support of LBA’s syndicate whose investors are already offering practical assistance over and above the SEIS investment.”
Ginseng tonic for drinks firm
It’s an unusual way to raise cash for a business start-up but crowd-funding has proved to be the tonic for a firm bringing a healthier drink to market.
Former bar tender Alex Kammerling used an online company called Crowdcube which provides a crowd-funding platform and his impressive business pitch attracted 64 small investors who bought a 30% stake in his company.
The firm, Kamm & Sons, is looking to promote an alcoholic ginseng-based drink which is distilled and bottled in London and he is already attracting orders from restaurants, hotels and high end retailers.
Alex needed the crowd-funding cash to help increase brand awareness in the UK and help develop export markets.
Stem cell research wins funding
A firm at the cutting edge of stem cell research has raised £1.6 million in early stage funding.
Cambridge-based Sphere Fluidics received a lot of interest from London Business Angels (LBA) and the group’s EIS syndicate fund, which provided £133,000 of investment.
The company aims to commercialise innovative single cell analysis technology to help biologists studying diseases such as cancer.
The firm’s chief executive, Frank Craig, praised the LBA which helped them polish their investment proposition and have since become key backers of their work.
