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A company designing and manufacturing sustainable packaging is the latest business to benefit from the Cornwall and Isles of Scilly Investment Fund (CIOSIF).

Flexi-Hex, based in Porthleven, has secured a £500,000 CIOSIF equity investment as part of a £1.25million funding round which includes multiple angel investors. The deal was handled by The FSE Group, the appointed CIOSIF Fund Manager.

The funding will be used to support the growth of the business, with a focus on international expansion and continuing to develop its pioneering product range, while creating a number of new jobs.

Co-founded by twin brothers Will and Sam Boex, Flexi-Hex produces sustainable packaging solutions originally developed for the shipping of surfboards. The patented honeycomb sleeves are made of 100% recycled paper, are curbside recyclable, and biodegrade within eight weeks.

Renowned for its strength, the innovative hexagonal cell structure provides improved protection for fragile products and offers a superior alternative to plastic and polystyrene products, such as bubble wrap and air pillows, while delivering an attractive product that is appealing to high-end brands.

Creative Director Sam said: “As surfers ourselves, we knew how important protecting the marine environment is to the surfing community and so in 2018 we launched our first Flexi-Hex surfboard sleeve. Since then we have gone on to develop eco-friendly packaging, that is also aesthetically appealing, for use across a range of sectors including drinks, cosmetics and electronics.”

Operations Director Will added: “This investment comes at a critical point in our development, supporting our launch in the US and other international territories as well as helping us to create additional innovative products and pursue our ambitious growth strategy.”

The global packaging market is currently worth almost $1trillion and e-commerce continues to grow following its pandemic boom. Consumer demand is leading the growing move towards sustainable packaging with legislative changes also becoming a key driver. The UK is set to introduce a tax on plastic packaging from April 2022, while some other countries – including Canada and Western Australia – are planning to ban single-use plastic packaging altogether.

Ralph Singleton, Head of Funds, Cornwall at The FSE Group, commented: “Flexi-Hex has a great track record, having achieved 260% organic sales growth year-on-year since launch. The team has established a strong customer base and has credible co-investors already in place. The investment secures 11 high-quality, professional jobs in Cornwall with many more expected to be created post-investment and we are delighted to be working with this vibrant team to help them take advantage of the opportunities available.”

The £40m Cornwall & Isles of Scilly Investment Fund provides debt and equity finance from £25,000 to £2 million to help growing small businesses across the region. It has been established by the British Business Bank in partnership with the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP).

Sarah Newbould, Senior Investment Manager from the British Business Bank, said: “The British Business Bank is actively supporting sustainable businesses around the UK through our regional funds. Flexi-Hex have created an innovative product that will help stem the tide of plastics entering our oceans, while creating jobs in Cornwall. We are delighted to support their further growth.”

LEP non-executive director John Acornley, who chairs the CIOSIF Advisory Board, said: “Flexi-Hex’s mission to tackle plastics in packaging with a sustainably-sourced, biodegradable alternative is an excellent example of a Cornish business that has innovation and sustainability at its heart. Their patented system has applications in a range of sectors and is poised to break into new markets.”

For more information about the Cornwall & Isles of Scilly Investment Fund including how to apply, please visit www.ciosif.co.uk  or follow the fund on Twitter at @CIOSIFBBB2

For more information about Flexi-Hex visit www.flexi-hex.com

Birmingham-based Hollywood Monster has secured a £250,000 loan enabling it to safeguard 40 employees whilst creating seven new positions over a three year period.

The business received the funding from the Midlands Engine Investment Fund (MEIF), provided by The FSE Group, Debt Finance Fund and backed by the Coronavirus Business Interruption Loan Scheme (CBILS).

With the continued growth of the company and securing new clients, Hollywood Monster will be expanding its workforce to strengthen the current team ensuring both existing and new contracts are delivered.

Hollywood Monster specialises in producing digital wide-format print and signage solutions for companies across multiple UK industries, including fast food, entertainment and retail. The business offers a full end-to-end service from design through to installation.

Tim Andrews MBE, Founder and Chairman of Hollywood Monster, said: “Covid-19 has definitely had an impact on many businesses across the globe during the last year and a half. This funding will enable us to maintain our current workforce, putting the company in a strong position to fulfil its growth plans. We have successfully replaced 90% of our products with sustainable alternatives and this will help us fulfil our target of being 100% sustainable by 2022. Our thanks to Kerry, The FSE Group’s Investment Manager, who guided us through the funding process to secure the loan, assisting the business to achieve its aims.”

In 2019 across Europe, 340 million square metres of printed graphics ended up in landfill.  Hollywood Monster took this opportunity to work with the UK reseller of a new PVC free range of materials and were the first business to successfully trial and implement these products into their range.

Kerry Haughton, Investment Manager at The FSE Group, which manages the MEIF Debt Finance Fund, adds: “Hollywood Monster is a well-established business with over 30 years’ experience in the industry and they have a strong, forward thinking leadership team. It is proud to be seen as an eco-responsible business which has a loyal customer base. It was encouraging to see Tim and his team be able to operate during the challenging lockdown period. The business has welcomed more new contracts and is well positioned to win even more as the UK fully opens-up. We look forward to working with the business as its team grows.”

Ryan Cartwright, Senior Manager at the British Business Bank, said: “This latest investment from MEIF, will be key in enabling Hollywood Monster to both maintain and grow its workforce. By increasing its capacity, the business can take on more contracts and continue on its growth journey. This shows the versatility of MEIF finance and its role in ensuring Midlands’ businesses have access to the funding they need to succeed.”

Tim Pile, Chair at the Greater Birmingham and Solihull Local Enterprise Partnership said: “In response to the pandemic and climate change emergency, many businesses have pivoted their operations. Using this MEIF funding, Hollywood Monster has adapted its products whilst securing and creating new jobs. This support will also help the team fulfil its growth ambitions, ensuring Hollywood Monster contributes to the wider economic recovery of our local economy. Along with businesses, GBSLEP is working with local authorities and colleges and universities to ensure that the recovery delivers inclusive, sustainable economic growth that benefits all our communities.”

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

The FSE Group, MEIF Debt Finance Fund provides loans between £100,000 and £1.5million to help growing SMEs across the region.

Velobici Ltd secured the funding from the Midlands Engine Investment Fund (MEIF) – managed by The FSE Group Debt Finance Fund and backed by the Coronavirus Business Interruption Loan Scheme (CBILS).

The company will use the funds to bolster its workforce over the next three years, creating seven full time jobs, six dedicated to the manufacturing side of the business and a new finance employee.

Velobici manufactures and distributes high-end cycling apparel and accessories. It uses sustainably sourced fabrics and has an adaptable manufacturing strategy that helps limit excess production. The funding will also enable the company to increase stock levels to help meet demand from both UK and export markets.

The company is also planning to move to larger premises, which will increase production capacity and allow the company to grow its distribution channels overseas. Alongside the larger premises, a new range of cycling apparel is being developed for Spring 2022.

Chris Puttnam, Founder and Director of Velobici, said: “Being a keen amateur cyclist myself, I understand the importance of having the correct, high-performance cycling apparel. COVID-19 affected supply chains across the manufacturing sector, but with lockdown restrictions easing, the situation is greatly improving, enabling us to get back to ‘business as usual’, albeit with the correct safety measures in place.

“This funding has not only enabled us to maintain our workforce, but we are now back to full manufacturing strength, fulfilling current orders and scheduling new ones. We take great pride in attention to detail and all our roadwear garments are manufactured by our own master craftspeople from start to finish. The imminent move to our new premises will see capacity increased to deliver a growth in sales.”

Ann Marie McFadyen, Investment Manager at The FSE Group, which manages the MEIF Debt Finance Fund, added: “Velobici has a highly experienced leadership team, all committed to ensuring the business becomes carbon-neutral by 2025. Its respected high-quality ‘Made In England’ brand, being 100 per cent UK manufactured, is well respected and sought after, both overseas and in the UK by both current and new customers.

“The sector is set to continue to expand, and it is great to see the business getting ready to move to a larger production site to fulfil the increase in orders. We look forward to joining Chris and his team at Velobici on the next stage of their journey.”

Lewis Stringer, Senior Manager at the British Business Bank, said: “MEIF funding can be used for a whole range of purposes, from building teams to expanding premises and purchasing equipment. It’s great to see another Midlands’ manufacturing business securing finance from the fund and growing globally.”

Kevin Harris, Chair of the Leicester and Leicestershire Enterprise Partnership, said:  “Velobici is an innovative textile manufacturer whose products and designs are made right here in Leicestershire, keeping our historic heart of the UK textile industry very much alive.

“I’m very pleased that they have secured this funding to enable them to expand their team and invest in the future of their business. It is essential that our local innovative and sustainable manufacturers get the support and funding they need to expand, so they can offer future jobs and opportunities for local people. This is exactly what the Midlands Engine Investment Fund was set up to do.”

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

The Coronavirus Business Interruption Loan Scheme (CBILS) was managed by the British Business Band on behalf of, and with the financial backing of, the Secretary of State for Business, Energy and Industrial Strategy (BEIS). The scheme ended on 31 March and has been replaced by the Recovery Loan Scheme.

The FSE Group, MEIF Debt Finance Fund provides loans between £100,000 and £1.5million to help growing SMEs across the region.

A Reading-based outdoor media advertising company has secured £300,000 from the Thames Valley Berkshire (TVB) Expansion Loan Scheme.

The funding will allow the company to acquire two more outdoor advertising sites and complete work on its four existing locations. To facilitate this growth the company will be increasing their employee numbers with key hires being made across marketing and operations departments.

Formed in 2017, Mass Media Outdoor is a leading provider of Digital Out of Home (DOOH) advertising in the M4 corridor and Greater London Area, but has plans to grow nationally. The business currently has 14 live sites comprising of 48 digital advertising screens. Primarily situated in locations with high traffic and footfall, such as arterial roots into towns and shopping centres, the adverts displayed on the screens are targeted to the location and set to run at specific times during the day. This ensures captive audiences see relevant adverts and advertisers get maximum brand exposure. This form of interactive digital advertising has replaced the traditional static billboards only capable of displaying one paper advert.

Mass Lambresa, Co-Founder and CEO of Mass Media explains: “Digital advertising is a fast-paced environment, continually growing and expanding. The finance will be used to acquire new sites allowing us to offer our service to more businesses wishing to target key audiences by streamlining their brand advertising. We are grateful for The FSE Group’s support in taking us through the funding process, helping us to secure the loan which will help us reach our next stage of growth.”

DOOH media is considered to be one of the best mediums when it comes to advertising and reaching a set target market. DOOH holds 50% of the UK market by revenue, with 80% of advertisers citing a significant increase in their sales compared with billboards and static signage. As this is a high-growth market sector, it will present increased opportunities for Mass Media to source more sites for their digital advertising screens, reaching even more target markets.

Rob Hillary, Investment Manager at The FSE Group, which manages the Thames Valley Berkshire (TVB) Expansion Loan Scheme, on behalf of Thames Valley Berkshire Local Enterprise Partnership (LEP) commented: “We were impressed by the management team sector experience, alongside its excellent brand and reputation they command in the market. An increasing number of outdoor static sites are being re-developed to DOOH and Mass Media is well placed to capitalise on this. We are delighted to be able to have secured this funding for the business and look forward to working with the team.”

Jacinta George, Business Environment Lead and Board Director at Thames Valley Berkshire LEP added, “To support the local and national recovery from Covid-19, it's vital that businesses like Mass Media receive funding to create jobs and expand its business offering. Taking into consideration the impact of Covid-19 on SMEs, it's encouraging to see this business want to grow and strengthen the creative sector in Berkshire."

TVB Expansion Loan Scheme is part of TVB Funding Escalator, an £11.3m initiative funded by Thames Valley Berkshire LEP. The escalator, which also includes a trade finance loan scheme and an equity growth fund, provides eligible companies with loans and equity funding between £50,000 and £300,000 for activities that will deliver high-growth and employment opportunities across the TVB area.

For more information about the Thames Valley Berkshire Funding Escalator, please visit https://www.thefsegroup.com/fund/thames-valley-berkshire-funding-escalator/ or contact Rob Hillary at rob.hillary@thefsegroup.com tel: 07436 144531

For more information about Mass Media, please visit https://mass-media.co.uk/

A London based technology business has secured a £500,000 loan from the Greater London Investment Fund to support its ambitious growth plans.

The funding will enable talent technology company Distributed to continue on its already established high-growth trajectory, despite the extensive impact of Covid-19 on the wider business community. The funding is being used to finance additional jobs, with the business rolling out a plan to recruit 20 new staff at its London base.

Distributed has built a process and platform which allows a business to work with the world’s best IT workforce as easily as it could with a local contractor. Its Elastic Teams model provides a solution that delivers fast, consistent, high-quality project delivery whilst giving developers democratic access to work, wherever they are based. 

Callum Adamson, Distributed’s CEO and Co-founder, said: “The pandemic has brought a recognition that geographical boundaries are increasingly irrelevant when recruiting the best talent. With a product already built on this premise, we were confident that we could not only survive, but thrive at a time when Covid-19 was having widespread consequences across the business landscape. With access to finance remaining challenging in the current climate, we are grateful to FSE for seeing the bigger picture and providing funding, which has enabled us to continue our growth uninterrupted.”

Marco Cerrone, Investment Manager at The FSE Group, which manages the £55 million GLIF debt fund on behalf of Funding London, added: “Distributed is already a strong early-stage business with significant potential, as demonstrated by a series of successful equity raises and established partnerships with private and institutional investors. The impact of Covid-19 demanded a combination of debt and equity finance to provide the flexibility needed for the business to stay on track. We are delighted to be supporting this sector-disrupting business that is leading the way in talent management.”

Maggie Rodriguez-Piza, CEO at Funding London, commented: “Despite unfavourable circumstance caused by the global pandemic, Distributed grew an impressive fivefold in 2020. We are excited to support their team expansion as they continue to provide the process and platform which enables companies to work with world's best IT talent.”

GLIF is a £100m initiative to help address the SME finance gap in Greater London, promoting economic growth through enterprise and an inclusive and sustainable economy. £55m of debt funding is available, via loans between £100,000 and £1m, to early-stage and established SMEs looking to scale-up and realise their growth ambitions. GLIF is financed through the European Investment Bank (EIB), European Regional Development Fund (ERDF), London Waste & recycling Board (LWARB) and Funding London’s Legacies.