North-East company raises more than £5m in a year
North Durham
Advanced Electric Machines (AEM) designs and manufactures electric motors and drive technologies
NORTH-EAST company Advanced Electric Machines (AEM) has completed a Series A funding round for £1.9m, which makes a total of over £5m of funds secured in the last year.
Formed in March 2017, AEM is a spin-out from Newcastle University which designs and manufactures electric motors and drive technologies for the transport sector.
It has achieved milestones including:
Winning collaborative research and development projects worth over £16m (receiving over £4.5m of grants and loans directly), starting product development programmes with over 25 organisations including Bentley Motors and CNH International;
Moving to a new 1200m2 facility in Washington capable of building 50,000 motors p.a;
Ad achieving ISO9001 for design and manufacturing processes, driving growth of the team to 17 people.
Having already received their first large commercial order, AEM is now working on opportunities across four continents and six different sectors including automotive, aerospace, marine and energy.
The funding round, led by Northstar Ventures which has invested £750,000 from the North East Innovation Fund, supported by the European Regional Development Fund and managed by Northstar Ventures, will support the next phase of growth.
Prof James Widmer, CEO, said, "This latest investment raised almost 60 per cent additional capital above the original target. It will allow AEM to invest in our design and manufacturing capability more quickly than we expected. We are grateful to Northstar, Saker, Tevva and the many small investors who are now supporting us in our vision of manufacturing the most sustainable electric motor technologies on the planet here in the UK."
Alex Buchan, Investment Manager at Northstar Ventures, said "Electrification is a key enabler for many sectors and we have real strength in the technologies that will drive it here in the region. We are pleased to be able to support one of the UK's rising stars in electric motor design and manufacture and help them create jobs in the North-East."
Paul Wigham and Nick Gray at national law firm Weightmans LLP advised Northstar Ventures and Saker Capital on the investment.
Nick Gray, solicitor at national law firm Weightmans LLP, commented:"This investment is fantastic news for the North-East and its burgeoning tech sector, fed by the region's world-class universities. We've advised Northstar Ventures on investments for more than 10 years, and more recently begun working with Saker Capital too, so it's great to see this commitment to support electric motor technology at a time when sustainability is more important than ever."