EMV Capital leads £2.5m financing package in domestic heat efficiency champion Ventive
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 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.
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.
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.”
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.