Syndication highlights strength of capital light investment model
London, UK – 13 December 2021 – EMV Capital Ltd (“EMVC“), the corporate finance and venture capital division of NetScientific plc (AIM: NSCI), the international life sciences and sustainability technology investment and commercialisation Group, announces that on 9 December 2021, it syndicated approximately £0.74m of its investment into Martlet Capital, first announced on 16 September 2021, to its investor network, and (ii) invested a further £0.73m, approximately, into Martlet Capital which has been agreed to be syndicated to the investor network shortly.
As a result of this investment, the total syndicated amount is £1.47m, under carried interest arrangements, while the Group’s direct holding upon completion will have decreased from £1m to £0.25m. This brings the total direct and syndicated investment in Martlet Capital, to a total of £1.72m, which represents 11.2% of the Martlet Capital’s issued share capital (1.6% direct holding and 9.6% advised), and £0.52m of Convertible Loan Notes (£0.075m direct holding and £0.445m advised).
Since the September 2021 investment co-led by the Group, Martlet Capital has completed the transfer of assets agreement with Marshall Group for the transfer of 50+ technology assets, as well as continued to support Marshall Group’s existing portfolio of early stage, Cambridge based, deep tech companies through additional follow-on investments, including:
- Techspert.io (AI driven expert network connections platform): £200,000 in September 2021 as part of an £8.5m round;
- Spotta (smart insect and pest detection and monitoring systems): £128,000 in October 2021 as part of a round of over £2.2m; and
- Dogtooth Technologies (intelligent fruit picking robots): £125k in December 2021 as part of a £7m round.
Commenting on this increase in investment, Dr Iliev, Managing Director of EMV Capital, CEO of NetScientific and Board member at Martlet Capital, said: “This provides yet another example of the use of NetScientific’s capital light investment to add value. The £1m original investment by NetScientific in September enabled the execution of a complex deal, while the use of EMV Capital’s investment network enabled the completion of the deal through further advised investment into Martlet Capital – enabling the return of much of the original investment to NSCI’s balance sheet. The Martlet Capital team has hit the ground running, resulting in further growth opportunities for NetScientific as we gain exposure to the excellent deal flow from the Cambridge cluster.”
Paul Bailey, Managing Director of Martlet Capital, said: “Martlet Capital Ltd is delighted to have the continued support of NetScientific with the completion of their second investment closing endorsing our position as a leading seed stage tech investor. The European technology sector is booming and as reported in The Times recently, Britain is leading the way in tech investment with Cambridge being chosen as the unicorn capital of Europe. Early stage investment levels are now on a par with the US for the first time and with the transatlantic links that NetScientific can offer Martlet’s portfolio companies then we are in a great position to nurture founders, invest at seed stage, provide scale-up capital and talent management expertise to these amazing technology companies.”
For more information, please contact:
|EMV Capital / NetScientific plc
|Ilian Iliev, CEO
|WH Ireland Limited (NOMAD, Financial Adviser and Broker)
|Chris Fielding / Darshan Patel
|+44 (0)20 7220 1666
About EMV Capital
EMV Capital Ltd (EMVC), a fully-owned subsidiary of AIM-listed NetScientific PLC, is a London-based award-winning investor focused on B2B companies in the healthcare, sustainability and industrials sectors with investments in the UK, US and Israel. EMVC’s model is to develop a customized investment strategy for each company, combining its network of investors from Family Offices, Wealth Managers, Institutional VC investors and Corporate VC funds. EMVC recognizes the benefits of corporate engagement for early-stage technology companies, with EMVC’s team having led and structured investments alongside some of the world’s leading corporations. EMV Capital has a growing EIS investment practice, and is an exclusive advisor to the EMVC Evergreen UK EIS Fund.
EMV Capital Limited is an appointed representative of Sapphire Capital Limited, which is authorised and regulated by the Financial Conduct Authority.
NetScientific plc (AIM: NSCI) is an active holding company, that invests in, develops, commercialises and realises shareholder value in life sciences/healthcare, sustainability and technology companies, which offer significant growth potential predominately in the UK and USA, as well as globally.
With the acquisition of EMV Capital in August 2020, the Group doubled its portfolio from 8 to 17 companies, either through direct subsidiary, balance sheet investment or capital under advisory, varying from start-up private companies to publicly listed equities.
NetScientific delivers shareholder returns through a proactive and hands-on management approach to their portfolio companies; identifying, investing in, and helping to build game-changing companies. The Group targets value inflection points and the release of value through partial or full exits from trade sales, public listings, or equity sales. The Company has a strong transatlantic and growing international presence, providing attractive expansion prospects.
NSCI can deploy a capital-light investment structure; utilising the power of the PLC Brand, and the NetScientific balance sheet to anchor future investments and achieve a multiplier effect by attracting 3rd party investment for the portfolio companies.
NetScientific is headquartered in London, United Kingdom, and was admitted to trading on AIM, a market operated by the London Stock Exchange, in 2013 (website: https://netscientific.net/).
About Martlet Capital
Martlet Capital, the investment arm of Marshall of Cambridge Limited, is an early-stage investor based in Cambridge, which has invested in more than 60 start-ups with high growth potential, since its launch in 2011. Martlet Capital provides patient capital for IP rich, early-stage B2B start-ups, with a primary focus on deep technology and life science companies based in Cambridge. The team is comprised of experienced investors and entrepreneurs. In addition to capital, the team offers value beyond capital through support, experience and a network of contacts. Over the last decade they have achieved several exits from their portfolio, helping companies scale from first-round through to exit from trade sales to global technology companies and IPO’s.