New Motion Labs (NML), a developer of innovative drivetrain technology for the mobility and industrial markets, has secured over £890,000 equity investment from the South West Investment Fund via appointed Fund Manager, The FSE Group.
The investment is part of a wider £1.8million funding round designed to support business growth and will bolster a variety of activities including product development, sales and marketing, and the creation of new jobs.
Exeter-based NML's patented and award-winning Enduo technology has re-engineered the traditional chain and sprocket to reduce wear, enhance component lifetime, reduce energy loss, and lower manufacturing costs, while offering retrofit capabilities.
It has already found success in track cycling and e-bike markets, including cargo e-bikes and shared e-bikes, resulting in significant reductions in energy consumption and maintenance requirements.
NML is now targeting the global industrial sector, where chain failure presents a costly challenge across thousands of manufacturing processes. Applications for Enduo are extensive and NML is poised to deliver reliable solutions across industries such as automotive and food and beverage.
Damien Murphy, NML CEO, said: "This funding marks a pivotal milestone in NML's journey, enabling us to accelerate our growth trajectory, expand our product offering and further penetrate the industrial market. The FSE Group has been working alongside us to help secure co-investors in a challenging investment market and we are grateful for their belief in our game-changing technology and the support of the South West Investment Fund."
Ralph Singleton, Head of Equity Investment at The FSE Group, added: "This experienced and knowledgeable management team boasts an impressive track record and influential industry connections. NML's robust R&D capabilities, strong IP position, and the proven efficacy of their Enduo technology position them uniquely to address critical pain points in both the cycling and industrial sectors. We are confident in their vision and the potential for substantial market impact and look forward to continuing to work with them as they enter this next phase of growth."
Paul Jones, Senior Investment Manager, British Business Bank: “NML have reengineered the sprocket and chain technology for the first time in over a century with the aim of applying it to potentially thousands of industrial and manufacturing applications worldwide. The South West Investment Fund exists to support the growth of innovative businesses in the region and this deal is a great example of that.”
The South West Investment Fund covers the entire South West region and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Fund is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the South West by increasing the supply and diversity of early-stage finance, breaking down barriers and providing funds to firms that might otherwise not receive investment.