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At The FSE Group we talk about sustainability a lot; it’s a weighty word with nuanced meaning.  

As one of our company values, we talk about it in terms of sustainable finance and sustainable growth. But we are also focused on the more familiar aspect of environmental sustainability, both in how we work with and support our portfolio companies to meet their environmental targets, and also the actions we take as a business to ourselves be more sustainable. 

By using an ESG VC framework with all of our portfolio, we ensure that these companies are assessing, monitoring and working towards strong ESG principles across their business. Many of the businesses we work with are registered B Corps or working towards B Corp accreditation and/or have made a commitment towards net zero. 

Our portfolio also features a number of businesses where the operation is provision of sustainable products and services, including: 

• Connekt Group is an independent electric vehicle (EV) charging network and commercial installation business, which secured a £250,000 Investment Fund for Scotland (IFS) loan to develop Connekt’s first three rapid charging hubs in Scotland, contributing to national sustainability goals and supporting the transition to electric vehicles. 

• Revolution-ZERO provides reusable medical textiles such as masks and surgical textiles. The company secured £1m South West Investment Fund equity to grow its circular economy solution that uses decontamination/sterilisation units equipped with an RFID tracking system. 

• Flexi-Hex received a £0.9m mix of debt and equity funding from Cornwall & Isles of Scilly Investment Fund to grow its sustainable packaging solutions, originally developed for the shipping of surfboards. Their durable, patented, recycled paper honeycomb sleeves are now used in the transit of goods including wine and premium toiletries, are curbside recyclable, and biodegrade within eight weeks. 

• RAD Propulsion is helping to reduce marine carbon emissions with its innovative electric engine technology, which cuts CO2 emissions by 89% compared to traditional diesel outboards. A £500,000 equity investment  from our Funding Escalator in the South East is helping the business drive product development.  

Since 2022 The FSE Group has been working towards Carbon Neutral Status, using an independent assessment tool and taking practical steps to change behaviours and practices that would reduce emissions. 

Paul Marston, CEO at The FSE Group, said: “with our focus on ensuring the businesses we fund are taking steps to be environmentally responsible, it’s important that we can lead by example.  Following the work to reduce our emissions, we have now taken action to offset the small amount of residual carbon via Carbon Neutral Britain. By supporting CNB’s Woodland Fund, we’re supporting projects both in the UK and around the world that are actively removing Carbon Dioxide & Greenhouse Gases from the Earth’s atmosphere. We’re proud to have gained Carbon Neutral status and look forward to continuing to support our portfolio companies to do the same.” 

Award-winning Yorkshire based Mini First Aid is expanding with investment from Finance Yorkshire.

The company was founded nine years ago by Kate Ball who has successfully grown the business which now operates more than 70 franchises covering most of the UK.

Mini First Aid provides first aid training and education to people of all ages with its original parent and carer classes proving most popular. Other classes are aimed at children and adults with workplace training available.

Kate started the business from her home after her brother died suddenly from heart failure. His student friends called the emergency services but the students did not know how to do CPR. Later, pregnant with her first child, she found there was little in the way of first aid training for parents-to-be.

A £100,000 investment from Finance Yorkshire’s Loan fund will support Mini First Aid in its growth ambitions which include new product development and staff hires including a marketing manager.

Mini First Aid’s parent and carer class covers all emergency situations including CPR, choking, bleeding and burns. On average, 1,000 families are trained each week. The company also sells branded first aid kits and has recently added a reuseable hot and cold gel pack to its product range.

Kate said: “My aim has been to build a brand providing first aid training which is memorable. All Mini First Aid classes are a brilliant learning experience – they are hands-on with skills taught in a way that people will remember should they need to put them into practice.”

Kate is joined in the business by her husband Matt who is operations and financial director. They have six children and Kate was named Yorkshire Businesswoman of the Year 2024.

The couple are now working with leading charities and the NHS to provide fully funded classes for low-income families. Kate added: “Only 10% of new parents are learning first aid so the opportunity to grow Mini First Aid in the UK is massive. There is also the potential for us to roll out our training model in other countries.”

Alex McWhirter, CEO of Finance Yorkshire, said: “Under Kate’s leadership, Mini First Aid has become a widely recognised brand delivering vital life skills to people of all ages. We are pleased to support the Mini First Aid team in their ambitions to grow further by reaching more people with their innovative style of first aid training.”

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.