A pair of engineers who developed a novel way to make advanced heat-resistant materials while experimenting on their kitchen stove have raised £1.3m.
Dr Danilo Di Salvo and Dr Richard Grainger of High Temperature Material Systems (HTMS) aim to make high-performance materials currently used in the aerospace industry available for mass market applications such as electric battery casings and automotive parts.
HTMS, which has a team of eight, has a laboratory in Bristol and is currently registered in Stratford-upon-Avon.
The company will use the funding to open a new production facility in the South West of England and an office in Leamington Spa, and continue its research and development.
Following its move to the new and larger premises, it expects to create 40 new jobs over the next four years.
Dr Di Salvo, chief executive and co-founder of HTMS, said: “Richard and I saw the potential of advanced thermal composites but were frustrated with the high cost and lack of a Ƶ supply chain.
"This is a fantastic moment for British manufacturing. We are excited to scale up manufacturing of our world-leading products and look forward to growing our business and championing British innovation.”
HTMS is already working with leading automotive and battery manufacturers, as well as Cranfield University and other research institutes. As its materials can withstand temperatures of up to 1400°C, the company is currently focusing on their use in exhaust parts, brake shims and electric vehicle battery casings.
The majority of the £1.3m investment has come from the British Business Bank’s South West Investment Fund and Midlands Engine Investment Fund II, through their respective fund managers Maven Capital Partners and Mercia Ventures.
It is the first time the two regional funds have collaborated on an investment, with each providing £350,000. Other investors include SFC Capital, DeepTech Labs, the US venture fund Plug and Play and angel investors.
Rafi Khan, Investment Manager at Maven, said: "As industries seek lightweight, heat-resistant materials that are scalable and sustainable, HTMS’s platform is well placed to deliver real impact. We are pleased to support Danilo, Richard and the team as they enter their next stage of growth.”
Shubham Jaipuria, Investor at Mercia Ventures, added: “HTMS’s advanced materials open up new possibilities across a range of industries – from safer electric vehicles and more fuel-efficient aircraft to improved energy storage. By enabling the launch of the new laboratory, this investment will also help to create a domestic supply chain for these important new materials.”
The purpose of the South West Investment Fund is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the South West of England. It offers a range of commercial finance options with smaller loans from £25,000 to £100,000, debt finance from £100,000 to £2m, and equity investment up to £5m.
Lizzy Upton, senior investment manager at British Business Bank, said: “This investment marks the first collaboration between the South West Investment Fund and the Midlands Engine Investment Fund II, showing the strength of our regional funds working together.
"By supporting HTMS’s expansion, we are helping to create skilled jobs, strengthen the Ƶ’s supply chain for advanced materials, and support one of the key growth sectors identified in the Ƶ’s modern Industrial Strategy.”
