News

The FSE Group, which supports high growth businesses through the provision of loans and equity investments, is the latest company to move to Exeter Science Park. 

The organisation has been delivering funding solutions in the South West since 2018 as the appointed fund manager for the Cornwall & Isles of Scilly Investment Fund (CIOSIF).  During that time, they have invested over £24.5million to support the growth of more than 60 businesses, creating or safeguarding almost 1,000 jobs and attracting a further £91.5million of private investment into the businesses they have supported. 

As CIOSIF comes to a close in December, the £200 million South West Investment Fund has been launched by the British Business Bank to provide a range of commercial finance options to growing businesses across the whole of the South West region. The South West Investment Fund offers loans from £25,000 to £2 million and equity investment up to £5 million.  

The FSE Group is managing the debt finance and equity finance part of the South West Investment Fund (some £70m) for Cornwall & Isles of Scilly, Devon, Dorset and Somerset (excluding North and North East Somerset), providing loans from £100,000 to £2 million, and equity investments up to £5 million. 

Ralph Singleton, FSE head of equity, south west, said: “We’re delighted to be based at the Exeter Science Park, which is home to many innovative businesses that we’re excited to work with. Exeter is a great location for us, with extensive links across the South West. We’ll be taking full advantage of the variety of co-working and breakout spaces that the Park has to offer, and would like to thank Sally Basker and her team for their warm welcome.” 

Jason Buck, senior business development manager at Exeter Science Park, added, “We’re very pleased to welcome the FSE Team to Exeter Science Park. We view the science park community as an eco-system and funders are a vitally important part of that. The FSE Group already has connections with many of our organisations and we’re looking forward to seeing that develop even further as they build on their presence here.” 

www.exetersciencepark.co.uk 

Huddersfield based Soren’s House – a children’s toy, decor and clothing retailer – is set for growth following investment from Finance Yorkshire.

Soren’s House specialises in sustainable Scandinavian style wooden toys, furniture, decor and organic clothing for children aged 0 to 12 years.

The company was launched by Sally Jackson in 2016 and is named after Soren Lorenson, a character in the popular children’s book and television series Charlie and Lola, an old favourite of Sally’s daughter, Seren.

A £80,000 investment from Finance Yorkshire’s business loans fund will enable Soren’s House to expand its team and accelerate its marketing activity to grow visibility and market share.

Sally’s partner in the business Max Jones said: “Our ambition is to be a one-stop shop for parents who are conscious about the environment and sustainability.”

The ethos of Soren’s House was developed after a pause in the business when Sally’s son Seth was diagnosed with Non-Hodgkins lymphoma at the age of six.

Max said: “Seth was treated for the best part of a year during which we had to put the business on hold. The experience of Seth being ill and his treatment gave us a different perspective and that’s why we are focused on natural materials and sustainability – we want parents to buy once and buy well and to be able to trust the products that they buy from us.”

Seth is now well and aged 12, sister Seren is 13.

With Finance Yorkshire’s investment, Soren’s House is set to employ a customer services manager and a digital marketing manager. The company plans to expand its product range and develop its own brand products.

“We see ourselves as a modern, natural design store merged with sustainability,” added Max.

Finance Yorkshire chief executive Alex McWhirter said: “We are pleased to support Soren’s House and applaud the entrepreneurial spirit of Sally and Max who are embarking on an ambitious development trajectory for their business with an emphasis on the growing interest in sustainable living.”

Speciality coffee roaster, Origin Coffee, has secured a £1 million investment from the Cornwall & Isles of Scilly Investment Fund (CIOSIF), managed by The FSE Group. The investment is part of a £3.1 million funding round with other investors including Create Impact Ventures and Yeo Valley.

The funding will be used to enable the growth of the business, which already boasts an innovative Cornish roastery, loyal customer base and a number of coffee shops. A significant focus on digital activity will support expansion of its direct-to-consumer retail rollout as well as further wholesale channels. New jobs will be created across a number of head office functions at its Porthleven base.

A committed B Corp, Origin Coffee is committed to improving ethical sourcing and sustainability within the industry, pledging to increase direct Green Coffee purchases from farmers by 77% over the next four years.

On raising external investment for the first time in the company’s 18-year history, founder and CEO Tom Sobey said: “This step offers us the flexibility and opportunity to take the company forward. We take our commitment to sustainability and transparency seriously and the foundation of our business will remain ethical as we grow. We are delighted to have in CIOSIF a Cornwall focused investor who knows where we come from and understands our commitment to the region and we’re so excited to grow together with all our new partners, as well as our long-time friends and supporters.”

Meg Salt, FSE Investment Manager at CIOSIF, said: ‘We are thrilled to be adding this thriving Cornish business with sustainability at its core to our portfolio. Tom has built a robust enterprise that has attracted high-profile investors who are committed to supporting this next phase of growth. We look forward to working with the team as the business grows, aiding UK expansion whilst also boosting employment in Cornwall and continuing to bring ethically sourced coffees from around the world to their customers.”

The 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 was established by the British Business Bank in partnership with the Cornwall and Isles of Scilly Local Enterprise Partnership.

Paul Jones, Senior Investment Manager from the British Business Bank said: “Origin Coffee has set a very high bar in the speciality coffee market for its commitment to ethical and sustainable sourcing and I’m delighted that the Cornwall and Isles of Scilly Investment Fund is able to support the further growth of the business.”

John Acornley, Chair of the CIOSIF advisory board, said: “Tom and the team at Origin Coffee are committed to growth and maintaining the culture of the business, and that’s a powerful combination. With the support of the fund and other investors we look forward to seeing the business expand nationwide.”

CIOSIF 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.

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

The British Business Bank is launching its new £150 million Investment Fund for Scotland today (5th October), unlocking additional funding to help smaller businesses to prosper and thrive.

The fund will drive sustainable economic growth by supporting new and growing businesses across the whole of Scotland through investment strategies that best meet the needs of these firms. It includes a range of finance options with loans from £25,000 to £2 million and equity investments up to £5 million to help small and medium-sized businesses start up, scale up or stay ahead.

The Bank’s Investment Fund for Scotland will be the first solely UK government-backed investment fund for smaller businesses in Scotland, helping to increase the supply and diversity of early-stage finance by providing options to firms that might otherwise not receive investment. Funding is designed to help businesses with activities including expansion, product or service innovation, new processes, skills development, and capital equipment.

Three fund managers have been appointed to manage the fund. DSL Business Finance will manage the smaller loans part of the fund (£25,000 to £100,000), The FSE Group will be responsible for larger loans (£100,000 to £2 million) and Maven Capital Partners will manage equity deals (up to £5 million).

Louis Taylor, Chief Executive of the British Business Bank, said: “With this fund for Scottish businesses, we hope to open the doors to new opportunities for a range of smaller firms looking to get started, grow, and develop across different sectors. We know that access to finance is a key concern for small businesses and are committed to ensuring that founders from all over the country have the same prospects in terms of finance, no matter where they are based.

“Scotland is a nation of entrepreneurs and innovators and recent success stories from spin-outs and early-stage businesses show that there is huge economic potential. We want to create local opportunities and generate an impact that spans beyond the fund, helping to boost productivity, innovation and employment.”

The Investment Fund for Scotland is the second in a series of six new Nations and Regions Investment Funds being launched by the British Business Bank and follows the launch of the South West Investment Fund in July. A total of £1.6 billion has been committed to the new funds to drive sustainable economic growth and break down barriers in access to finance.

Scottish Secretary Alister Jack said: “It’s great news that the British Business Bank is launching its new £150 million Investment Fund for Scotland. This funding boost will be hugely important in giving smaller Scottish businesses the investment they need to grow. Scotland has some fantastic business success stories, and this new, additional fund will help create even more of them.”

Among the Scottish businesses to already benefit from the British Business Bank’s support is Aberdeen-based drug discovery company Elasmogen. It received funding from British Business Investments, a commercial subsidiary of the British Business Bank, through an EIS funding round undertaken by Deepbridge Capital.

Professor Caroline Barelle, CEO of Elasmogen, said: “As a therapeutic drug discovery company, investment is crucial for us to convert our technology into medicines for patients. At Elasmogen, we are developing antibody-like molecules (soloMERs) for autoimmune disease and cancer.

“The investment from the Bank enabled us to progress our targeted soloMER-chemotherapy program into patient-derived studies of triple negative breast cancer, demonstrating rapid tumour reduction and regression. We have since progressed and expanded this program into a pipeline of first-in-class chemotherapy conjugated drugs, not only validating our soloMER technology but bringing us closer towards the clinic.”

Following today’s launch, the British Business Bank will be holding a series of information roadshows aimed at people working in the small business finance ecosystem including enterprise agencies, advisers, accountants and more. The first of these will be held in Inverness on 31 October with the second in Edinburgh on 1 November. More towns and cities will be covered in the new year and an online version of the session will also take place on 7 November.

To find out more and apply for funding, visit: www.investmentfundscotland.co.uk

South West research and development company Molendotech is the latest business to be supported by the Cornwall and Isles of Scilly Investment Fund.

The business has secured a £500,000 CIOSIF equity investment, as part of an oversubscribed £1 million funding round which includes investment from appointed CIOSIF fund manager, The FSE Group, Exeter based VC firm QantX, a number of existing private investors and the management team.

Molendotech will use the newly raised funds to create an operational unit based in the Health and Wellbeing Innovation Centre in Truro.

The business has developed easy-to-use, portable and rapid tests to monitor and detect pathogens found in water. One of the company’s existing tests is BacterisK+ which can detect gram-negative bacteria in water in less than 30 minutes. Gram-negative bacteria include those associated with faecal contamination such as E.coli, and are among the world’s most significant public health problems due to their high resistance to antibiotics.

Molendotech was founded by Professor Simon Jackson at the University of Plymouth in 2018. Now its customer base includes environmental agencies, water companies, and national and local government authorities, and its methods and assays are protected by patents in several countries including the US, UK, Australia and Japan.

In 2022 the company successfully developed applications for specific areas of the healthcare sector, such as chronic wound – a condition that affects 2.2 million people in the UK with an estimated annual cost of £5.3 billion to the NHS.

Simon Jackson, Chief Scientific Officer at Molendotech, said: “Being able to detect pathogens quickly and accurately is vital when working to keep communities safe from harm. Our testing solutions can be used quickly and by anyone who has had basic training, meaning rapid action can be taken to address a poor quality environment or danger. Whilst our products can be used anywhere in the world we are extremely proud to be a South West company. Receiving support via CIOSIF has meant a lot to us, and we will use part of these funds to employ more local staff over the coming years as our business grows.” 

Anna Staevska, Investment Manager at The FSE Group, added: “We are delighted to be supporting a local business which has the potential to make a huge difference to the safety of people all over the world. We were impressed by the core team’s extensive knowledge of their sector and their strong links to Plymouth University, which will be incredibly useful throughout the research and development of new solutions. We look forward to seeing their Cornwall team grow and wish them every success for the future.”

The 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 was established by the British Business Bank in partnership with the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP).

Paul Jones, Senior Investment Manager from the British Business Bank said: “Molendotech is a great example of a University spin-out that has used its research expertise to develop novel technology for applications around the world. With CIOSIF support we look forward to seeing the continued growth of the business.”

John Acornley, Chair of the CIOSIF advisory board and former LEP non-executive director, said: “Innovation and collaboration is at the heart of what Molendotech does and I am delighted they are establishing a base in Cornwall. They continue to develop new ways to test for bacteria and are already developing rapid tests for the food and drink sector in order to safeguard human health.”

CIOSIF 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.

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