Launch of Exhaust Air-source Heat Pumps programme enabled by innovative financing package
EMV Capital advised on debt and capital restructuring, syndicated an equity and debt investment, and now supports the company’s growth
EMV Capital, the deeptech and venture capital specialist, a wholly owned subsidiary of NetScientific plc, the international life sciences and sustainable technology investment and commercialisation group, is delighted to announce that it has led a £2.5m financing package in the domestic heat efficiency specialist, Ventive.
The deal syndicated by EMV Capital is an investment package which includes an initial equity and debt investment of £600,000 from new investors. EMV Capital has taken a c.16% direct stake in the business, in partial settlement of fees. The package also includes the restructuring of c. £1m of historical debt. The fresh cash enables the launch of a Department for Business, Energy & Industrial Strategy (BEIS) matched funding grant of £1.5m, in line with EMV Capital’s capital light investment approach.
The new funding will allow Ventive to deliver its modular heat pump production facility in Hartlebury, Worcestershire. Ventive’s modular exhaust air heat pumps are targeted at both new build and retrofit applications and will provide significant cost and carbon dioxide emissions reductions across their installation, operation, and production.
Ventive has partnered with QM Systems, a subsidiary of AIM-quoted PipeHawk PLC, to setup and scale-up its production to meet growing market demands. QM Systems offers multi-disciplinary production design, automation and high value manufacturing services backed by years of engineering experience.
Rob Morrison, Managing Director of Ventive, said:
“The demand for more efficient domestic heating solutions has never been greater. This need has been compounded by the threat of climate change, and the current cost of living crisis which has sent energy bills soaring.”
“We are delighted with the support provided by EMV Capital that helps to strengthen Ventive’s balance sheet, and provides us with the funding needed to accelerate the launch of our efficient and cost-reducing heat pump division, and equally importantly, with an experienced team of active investors who have significant industry expertise.”
Ed Hooper, EMV Capital Director, and the newly appointed Investment Director at Ventive, added:
“EMV Capital is very pleased to welcome Ventive into our growing investment portfolio. Ventive’s intelligent building service systems, which seek to dramatically reduce carbon emissions for homes, fit well with our focus on deeptech, and sustainability companies with an ESG impact.
“I look forward to working closely with Ventive’s management team, and the company’s project partners, and driving value for investors.”
Nick Field, QM Systems Managing Director, a subsidiary of AIM quoted PipeHawk PLC further added:
“It is fantastic news that over the last few weeks, Ventive has been able to tap into a number of relevant funding streams, particularly the award of the BEIS grant and entry into EMV Capital’s portfolio, which will provide significant investment and will help Ventive to not only accelerate the development of this new and exciting product range, but also provide the funding that will be required to bring the product into production.”
Ventive Home Heat Pumps are demand responsive, fully integrated Indoor Environment Control systems which provide integrated ventilation, renewable heating, and hot water with free summer cooling. The Heat Pump will arrive pre-plumbed and pre-configured with monitoring and energy storage to enable quick and simple installation.
The investment in Ventive fits well with EMV Capital (and NetScientific’s) strategy for pro-active investment management, trans-Atlantic growth, and a focus on transformative technology companies in high impact sectors. EMV Capital excels at helping innovative companies to raise money, and to take a stake as a principal, thereby committing to its portfolio companies.
Ventive designs and manufactures innovative intelligent building service systems in the UK, with an aim to create comfort without costing the Earth. From ventilation to heating and cooling, their ambitious team has already commercialised a few technologies and is well positioned to address the complexities of the Energy Transition with their new range of all-in-one home energy systems. Ventive has the ambition to provide a healthy, comfortable and safe indoor environment intelligently and at a reasonable cost, also opening the opportunity to help demand energy management on aggregated scale.
Ventive was founded by serial entrepreneur and architect Tom Lipinski with a vision to improve the comfort and sustainability of residential built environment
About EMV Capital
EMV Capital Ltd (EMVC) is a London-based award-winning VC investor with a focus on opportunities in the industrial high-tech, sustainability and healthcare sectors. EMVC’s investments cover a range of technologies including robotics and AI, machine learning, materials science, IoT, advanced engineering, power electronics and Health-Tech. EMVC’s model is to develop a customised investment strategy for each company, combining its network of investors from Family Offices, Wealth Managers, Institutional VC investors and Corporate VC funds.
EMV Capital was acquired by NetScientific in September 2020, and remains a fully-owned subsidiary.
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About QM Systems
QM Systems are a leading UK manufacturer of innovative assembly systems and test solutions across a wide range of industries including Building Services, Aerospace, Medical, Pharma, Marine, Automotive, Rail and Food and Beverage. As well as providing manufacturing solutions QM also provides its clients with a Contract Manufacturing service where the client retains ownership of the product and QM provide manufacturing capacity to build the clients products on state-of-the-art manufacturing systems engineered by QM Systems at its facility located in Hartlebury, Worcestershire. QM has the capacity to partner with clients from initial proof of concept for a new product through to production scale up internationally and operational responsibility for ongoing product manufacture.
For enquiries, please contact QM Systems:
Kristian Richardson: +44(0)1905 621882 | Kristian.firstname.lastname@example.org
More than £15 million has recently been awarded by the Department for Business, Energy & Industrial Strategy across 24 innovation projects to make low carbon heating like heat pumps cheaper to purchase and easier to install.
Accelerating the UK’s heat pump rollout will help households move away from using costly fossil fuels and supports Government targets of installing 600,000 heat pumps a year by 2028.
The grant funding will create more than 300 jobs and comes alongside the Government’s £450 million Boiler Upgrade Scheme that provides UK households grants of £5,000 towards the cost of installing a heat pump.