Eight North of England startups have become the latest companies to receive investment from PraeSeed, a six-week cohort-based investment programme for early-stage businesses from the Northern Powerhouse Investment Fund II (NPIF II) and PXN Ventures, which has launched following the merger between Praetura Ventures and Par Equity.
Now in its second year, PraeSeed has invested £200k in each of the eight businesses from NPIF II – PXN Equity Finance, which is managed by PXN Ventures as part of the Northern Powerhouse Investment Fund II. This latest round of cheques takes the total amount invested by PraeSeed to date to £3m, with seven businesses receiving investment last year to help them scale.
The eight investee businesses were selected from a shortlist of 12 that took part in the summer programme, which saw workshops and presentations on all aspects of scaling a business, including developing a go-to-market strategy, navigating financial modelling and tackling fundraising alongside mentoring from the PXN investment team, Operational Partners and external business experts.
Among the companies receiving investment are ADTechOptima, a Lancaster University spinout bringing vital efficiencies to the anaerobic digestion space, where specialist plants convert organic waste, such as food waste, into energy.
Also occupying the anaerobic digestion space is Future Greens, a Sheffield company helping food and drinks manufacturers, including breweries, to monetise their waste by turning it into energy via onsite microdigesters.
Manchester’s Crediflow AI received investment from PraeSeed after impressing the team with its AI-driven fintech solution, designed to automate time-intensive steps in the credit analysis, due diligence and risk monitoring processes for banks, business lenders and credit teams.
This is also the second year in a row that PraeSeed is backing a company in the maritime space. NeuWave Technologies, also based in Manchester, combines AI with historical data to help maritime professionals assess whether it is safe to travel out to sea to complete operational tasks offshore.
Investment has also been made into Durham-based Feasibly, a geospatial AI solution that will allow engineers to swiftly and accurately assess whether various sites are suitable for solar installations, and Liverpool-based Respiosa which has created a cost-effective and minimally invasive medical device to tackle sleep apnoea and replace CPAP masks, often seen as uncomfortable and noisy.
In Leeds, PraeSeed is backing AUDITSU, a regulatory tech (or RegTech), business that generates actionable reports for businesses whose apps are not compliant with new EU regulation and directives surrounding accessibility guidance.
The final company receiving investment from PraeSeed this year is Revela, which has recently rebranded from Spotlight Health. The Newcastle-based medtech company is developing technology to shorten the time it takes to diagnose endometriosis by performing AI analysis on ultrasound scans to spot the subtle signs of a condition the World Health Organisation predicts affects 190 million women and girls globally.
PraeSeed has continued to attract and invest in a diverse mix of founders, with this year’s final investee companies 50% female-founded and 50% BAME-founded. One quarter of the cohort was also made up of preseed companies who had applied to PraeSeed in the previous year, successfully securing a place this year by taking on feedback and demonstrating clear progress in their second application.
Jess Jackson, PraeSeed lead at PXN Ventures, said: “The second year of PraeSeed yet again surpassed all expectations in terms of the quality of businesses that took part. The companies that have received investment are those that we are backing as the next in the North. This investment reflects not only their commitment to the programme but our belief in the technology and solutions they’ve built, which span a diverse range of sectors from women’s health to green energy. In addition, two of the businesses who have received investment this year applied for PraeSeed last year but weren’t quite at the right stage to benefit from the programme at the time. We would therefore encourage founders who have previously applied to PraeSeed to do so again next year and highlight the progress they’ve since made, as building relationships with investors is essential!”
Sue Barnard, senior investment manager at British Business Bank, said: “Early-stage investment is crucial in helping businesses scale and reach their full potential. That’s why NPIF II is committed to alleviating regional disparities, providing founders from across the North with the funding and expertise they need. With the wider support of the PraeSeed programme, it’s great to see such a diverse group of businesses securing investment for the second year. We look forward to seeing how these companies continue to strengthen the North’s innovation ecosystem and drive sustainable economic growth across the region.”
The £660m Northern Powerhouse Investment Fund II (NPIF II) that has funded PraeSeed through NPIF II – PXN Equity Finance covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
The next instalment of PraeSeed will launch again in March next year with founders encouraged to keep an eye on updates nearer the time.
NPIF II – PXN Equity Finance can provide investments in the NPIF II area with a primary focus on the North West regions of Cheshire, Cumbria, Greater Manchester, Lancashire and Merseyside.
ADTechOptima was advised by TLT LLP, Auditsu and Crediflow AI were advised by Squire Patton Boggs, Feasibly was advised by Hunters Law LLP, Future Greens was advised by gunnercooke LLP, Respiosa was advised by Philip Lee LLP and Revela was advised by Muckle LLP.
A team from Irwin Mitchell LLP, led by partner Adam Kaucher, acted on behalf of PXN Ventures for all the above deals and supported the legal framework for the programme.
