News

Business angels from the FSE Investor Network, in collaboration with investment funds and funding escalators managed by The FSE Group, have recently made significant contributions to the growth and innovation of several FSE portfolio companies.

Recent FSE angel investments include:

• RAD Propulsion: a £25,000 investment from one business angel contributed to a £5m funding round that also included £0.5m equity from the FSE managed South East Funding Escalator.
• Cybaverse: six FSE business angels collectively invested £91,000 alongside a £350,000 equity investment from the FSE managed Coast to Capital Funding Escalator as part of a £1+m round.
• Aura Life: backed by £84,000 from three FSE angels and a £350,000 equity investment, again from the Coast to Capital Funding Escalator, in a £2+m round.
• Intelligent AI: a £2+m funding round included £131,000 from a syndicate of six FSE angels with a £500,000 equity investment from Cornwall & Isles of Scilly Investment Fund, managed by FSE.

These companies operate in diverse sectors – marine electrification, cybersecurity, end-of-life planning and commercial property insurance – but all are driving innovation and facing substantial growth opportunities in the markets where they operate. The investments are helping to fund a range of growth-related activity, including product development, team expansion, geographical expansion and scaling operations, to help maximise their potential.

FSE’s Investor Network Manager, Trevor Jones, remarked: "Our network is committed to empowering high-growth UK companies across various sectors. We believe in the potential of these entrepreneurs and are dedicated to supporting their journey towards success. The diverse expertise and substantial experience of our business angels play a crucial role in driving these companies forward."

The FSE Investor Network remains an exclusive platform for active angel investors. Spanning all sectors, the network offers investment opportunities in high-growth businesses that, importantly, are backed by FSE-managed funds. Our angels share a breadth of entrepreneurial, professional, and business experience and typically invest between £10,000 and £50,000 in each company, sometimes more.

FSE Investor Network member and UK British Business Angels Association Angel Investor of the Year 2024 finalist, Damian Cavanagh said: “FSE Investor Network provides access to opportunities that have been vetted by the FSE investment teams, providing an added level of confidence when co-investing alongside FSE-managed funds. It’s great to see a broad range of potential deals and choose those that align with my interests and experience.”

For more information on investment opportunities or to join the FSE Investor Network, contact Trevor Jones: Trevor.Jones@thefsegroup.com

Wilder Sensing, a developer of software for biodiversity monitoring using audio and Artificial Intelligence (AI), has secured a £300,000 equity investment from the South West Investment Fund, via appointed Fund Manager The FSE Group. This forms part of a £700,000 investment round that also includes Oxford Innovation Finance and Cambridge Angels. The new funding will enable the company to create 15 new jobs, increasing its capacity to deliver cutting-edge solutions in biodiversity data collection and analysis.

Wilder Sensing has developed an innovative AI-based platform designed to measure and report on biodiversity through the analysis of audio data. The platform uses commercially available bioacoustic recording equipment to deliver accurate analysis of wildlife sounds, currently focusing on birds, and expanding over time to include bats, insects and other species. This continuous data collection offers more detailed and consistent insights compared to traditional static and human-led surveys.

Wilder Sensing's platform has already attracted a diverse range of customers, including Somerset Wildlife Trust, ecological consultancies and large-scale farming businesses, as well as a project for BBC's Springwatch. With potential applications across many sectors including Agriculture, Renewable Energy, Mining, Oil & Gas and Construction, the company is well-positioned to play a pivotal role in sustainable development and biodiversity conservation efforts.

Geoff Carss, CEO and co-founder of Wilder Sensing, which is based near Wedmore in Somerset, said: "The biodiversity collapse is one of the top global risks identified by the World Economic Forum, with over half of the world's GDP relying on nature. Our technology addresses the urgent need for accurate, scalable, and unbiased biodiversity monitoring around the world. This investment will enable us to enhance our platform and expand our reach, helping industries and government bodies make informed decisions backed by solid data."

Matt Browning, Investment Manager at The FSE Group, commented: "Wilder Sensing's innovative approach to biodiversity monitoring aligns perfectly with current market drivers and new legislative requirements. The company's participation in respected incubator and accelerator programs, along with its strong intellectual property potential, demonstrates its commercial viability and scalability. We are excited to support Wilder Sensing as they lead the way in this growing market."

As businesses and governments increasingly prioritise sustainability and nature regeneration initiatives, Wilder Sensing offers a robust solution to ensure activities are backed by data, enhancing environmental accountability and reducing the risk of greenwashing.

Paul Jones, Senior Manager from the British Business Bank said: “Wilder Sensing represents the kind of innovative, fast-growing business that the South West Investment Fund is dedicated to supporting. The team’s technology offers a powerful tool for industries looking to achieve meaningful sustainability goals, providing the accuracy and scale needed to make data-driven decisions for environmental stewardship. This investment reflects our commitment to nurturing businesses in the South West that contribute not only to the region’s economic strength but also to positive environmental impact.”

Richard Cooper, Managing Director at Oxford Innovation Finance, added: “Wilder Sensing has been generating significant interest for its pioneering technology which accurately measures and analyses biodiversity. With an increasing focus on corporate environmental goals, it is well positioned to lead the market for precise ecological data and reporting, and support environmental management efforts.”

The purpose of the South West Investment Fund is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the South West. It offers a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. The fund is increasing the supply and diversity of early-stage finance for South West smaller businesses, providing funds to firms that might otherwise not receive investment and helping to break down barriers in access to finance.

The FSE Group, a leading provider of market gap funding for SMEs, has released the results of a recent survey aimed at understanding current trends in business borrowing and confidence. The survey, which gathered responses from key stakeholders such as accountants, brokers, and banks, offers a snapshot of the financial landscape businesses are navigating today.

The survey revealed that a significant 80% of respondents anticipate that businesses will continue to borrow either the same amount or more over the next six months compared to the previous period. Only 20% believe there will be a decrease in borrowing activities, suggesting a stable or growing need for funding among businesses.

Among the financial products in demand, Commercial Mortgages and overdrafts emerged as the most popular, with each being ranked highest by over a quarter of respondents. Asset Finance, Unsecured Loans, and Invoice Finance collectively accounted for 43% of the preferences, highlighting a diverse interest in financing options.

When it comes to general business confidence, opinions were divided. One third of respondents expressed a belief that confidence would decline compared to the last six months, almost half expected it to remain the same, and just over one-fifth anticipated an increase.

"The survey highlights the complexities in the current business financial environment," said Paul Marston, CEO of The FSE Group. "While there is a clear appetite for growth funding, our insights suggest that whilst most Bank lending policies require some form of security to lend to smaller businesses, other gap funders remain open to forecast-led lending, provided there is historical performance data available."

The mixed outlook on business confidence may be further impacted by the recent government announcement regarding a rise in national insurance contributions by employers with the policy change potentially leading to reduced willingness among businesses to borrow, as they adjust to new financial pressures.

Paul added: "While the rise in national insurance contributions definitely poses a new challenge, the resilience of the British business community cannot be understated. We've seen remarkable adaptability and strength, particularly during the COVID-19 pandemic and these new costs may see even more focus on productivity."

The FSE Group remains committed to supporting businesses that have an opportunity to grow, including those relying on that growth being a success in order to fund their additional financing requirements.

Safe Space Technology has closed a seed funding round with the South West Investment Fund , via appointed fund manager and lead investor for the round, The FSE Group.

Safe Space Technology, trading as Safe Workplace, has developed a comprehensive ethics and compliance platform that provides culture-first enterprise organisations with the tools to create and manage inclusive, safe and high-functioning workforces that proudly champion a shared code of ethics and conduct.

Safe Workplace has rapidly gained traction since launching in 2022 and already has a customer base that includes leading brands across sectors including finance, pharmaceutical, mining and hospitality, as well as Amazon.

The platform offers a suite of culture and compliance tools, from reporting and case management to integrated policy suites with compliance tracking and more, to enable Employee Relations and Compliance departments to act proactively and effortlessly.

Safe Workplace CEO, Romano Rabie, said: "Building a healthy workplace culture is a collective responsibility; employees need to feel equipped, safe and protected, with Employee Relations and Compliance empowered and accountable. Our platform supports organisations to act fairly, kindly and responsibly, reaping the benefits of the Safe Workplace they create.  We are delighted to receive this South West Investment Fund funding, which will enable us to further develop our product and expand our team."

Anna Staevska, Investment Manager at The FSE Group, added: "Safe Workplace has demonstrated remarkable growth by securing global keystone clients and offering a superior product that addresses real problems faced by businesses today. The experienced team behind Safe Workplace has a proven track record of building and exiting successful ventures and we are thrilled to support their vision."

Safe Workplace plans to expand its workforce across all business operations, with the goal of exceeding 100 employees and targeting a £25+ million turnover, within five years. 

Alex Breeden, Principal at co-investor, Fuel Ventures commented: "Safe Workplace is platformising the very necessary checks that need to be put in place for the very largest enterprises in order to find workplace risks and resolve them. Every large company should be using a platform like this."

The global human resource technology market is projected to surpass $75 billion in the next decade, driven by the rise of hybrid working models and evolving legislation to prevent workplace misconduct. Safe Workplace is well-positioned to capitalise on these trends by offering a highly configurable platform that integrates previously disparate elements seamlessly.

Paul Jones from the British Business Bank said: "We are pleased to support Safe Workplace in its mission to create safer, more inclusive workplaces through innovative compliance and ethics technology. Safe Workplace’s rapid traction and ability to attract major clients speaks to the strength of its platform and their expertise. We look forward to seeing the funding help accelerate their growth and meet the rising demand for their culture-first compliance platform.”

The purpose of the South West Investment Fund is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the South West. It offers a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. The Fund is increasing the supply and diversity of early-stage finance for South West smaller businesses, providing funds to firms that might otherwise not receive investment and helping to break down barriers in access to finance.

Spring Food Limited, a producer of bone broth and bone broth soup based in Essex, has secured a £100,000 investment from the East of England Regional Loan Scheme, managed by The FSE Group.

Spring Food, trading as Spring, has carved out a niche in the culinary market with its range of almost 30 bone broth products sold both online and through its network of circa 200 retail partners. These include high-end independent food retailers, farmers markets and recognised national retailers such as Marks and Spencer.

The popularity of bone broth, celebrated for its nutritional benefits, continues to rise, appealing to a broad demographic from millennials to the elderly.

In a bid to capitalise on this growing market, Spring sought alternative financing solutions to fill the gap left by traditional lenders with limited interest in lending to smaller, growing businesses in the current economic climate.

“This growth loan facility is exactly what we were looking for at this stage of our business,” said Tom Pryor, Spring Founder and Managing Director. “It not only helps us implement our current digital and marketing strategies but also supports capacity building and provides the working capital needed to facilitate the delivery of large contracts to major customers. We are delighted to be working with FSE and look forward to accelerating our growth with this funding.”

With its established processes, robust supply chain, and loyal customer base, Spring has already achieved significant growth over the past five years. It has successfully grown its retail partnerships and continues to experience strong year-on-year growth.

Simon Elliott, Investment Manager at The FSE Group, commented: “Spring has demonstrated an impressive trajectory with its organic growth and innovative product offerings. We are excited to support the continued expansion of the business and are confident that our investment will catalyse further success in their mission to deliver superior, sustainable food products.”

Spring’s commitment to quality and sustainability is evident in their end-to-end business model, collaborating directly with small, independent farmers who adhere to the highest welfare and environmental standards, ensuring that their products minimise food waste and are ethically produced.

The Regional Growth Loan Scheme (RGLS) is managed by The FSE Group on behalf of Local Enterprise Partnerships in the East of England. Loans between £50,000 and £500,000 are available to established incorporated businesses based within the East of England that have a minimum annual turnover of £100,000. The funding can be used for a range of growth activities as well as to service short to medium-term trade and contract finance requirements. The scheme aims to stimulate job creation and economic prosperity and supports SMEs that have the potential to deliver high-growth and employment opportunities across the East of England region.