Helping high growth start-ups

Part of a £3 million package of support, the funding provides grants of up to £50,000 for 41 high growth potential start-ups and up to £130,000 for 16 spinout projects. It also includes bespoke support to help the businesses develop.

Economy Secretary Fiona Hyslop said:

“Start-up and spinout companies, many of which are in the technology, digital and low carbon sectors, are the future of our economy. They are driven by the spirit of entrepreneurship and innovation. Crucially, they are the kind of enterprises that create high-quality jobs, and which attract investment into Scotland – both of which will be vital to successfully rebuilding the economy after the damage caused by COVID-19.

“By supporting start-up companies and spinout projects through this funding we can not only help them survive, but give them the potential to prosper. This is a key part of our long-term mission to create new jobs, good jobs and green jobs.”

The University of Edinburgh’s innovative Exergy3 spinout project is one of the first to be awarded funding. It aims to provide power storage using electric-to-electric thermal energy storage technology, has the potential to convert existing fossil fuel burning power plants to zero carbon energy storage systems.

The pandemic meant that work on Exergy3’s small-scale prototype ground to a halt, however, with the additional support from the Scottish Government, the team is now able to progress and take the technology a step closer to commercial use.

Dr Adam Robinson, lecturer in Mechanical Engineering at the University of Edinburgh, said:

“This funding will springboard us to the next stages of our project where Exergy3 can be central to Scotland’s low carbon transition. We can now complete and test our small-scale prototype, build a consortium to demonstrate our technology on a working power plant, as well as demonstrate the commercial case for our technology. Exergy3 has global export and investment potential and could provide high quality sustainable jobs of the future.”

Steve Dunlop, CEO of Scottish Enterprise said:

“The coronavirus pandemic has had far-reaching impacts on all aspects of our business base including our high growth early stage businesses and university spinouts. It’s vital we continue to support these ventures so that those with the very best growth potential can flourish into significant businesses of the future. We’re pleased to have been able to work at pace with our partners to identify these projects and to get the funding to them in such a short space of time.

“We will continue to work closely with the companies and spinout teams to provide a range of support that will help them further develop and attract new future investment.”

Background

Other examples of companies and spinout projects benefiting from the fund include:

Aberdeenshire-based, Recycl8, was awarded £42,000 from the fund.  The new start-up company aims to upcycle waste energy incinerator material which currently goes to landfill, by transforming it into a low carbon additive for concrete manufacture.

Director Ian Skene, said: “We started Recycl8 Limited last year and have been working with Scottish Enterprise through its Grey Matters initiative that supports entrepreneurs from Scotland’s energy sector. We’re ambitious to scale Recycl8 to create low carbon solutions to 21st century problems and the COVID-19 crisis has come at a critical time in our business journey. 

“This pre-seed funding will be instrumental in helping us in allowing the project to be accelerated with initial material testing commencing almost immediately along with the development of our branding/corporate identity. The funding will also assist with our challenge of attracting 3rd party investment, allowing Scotland to lead the way in this exciting development for Climate Change.”

Lanarkshire-based Origin Peptides was awarded £50,000 to further accelerate its business growth.  The innovative life sciences start up is at the cutting edge of peptide synthesis, producing superior quality peptides for research in a way that’s cheaper, faster and more sustainable than current methods.  

Origin Peptides director, Sara ten Have, said: “The Covid-19 pandemic had the potential to derail our business growth journey, this pre seed funding comes at a critical time as we focus on establishing Origin Peptides as a zero waste alternative for peptide manufacture and developing the instrumentation to do so, for the UK and Global markets.

“The grant will accelerate our journey, adding to the flourishing Biotech environment of Scotland, and developing cheaper, faster, cleaner peptide manufacturing technology for use in the Pharmaceutical and Research markets.”

Edinburgh-based, Intellipalp Dx is an early stage Heriot-Watt spinout company that is aiming to revolutionise the way men are screened for prostate cancer by providing more accurate testing at an early stage, leading to reduced patient anxiety and more efficient diagnosis. The company was awarded £46,000 of pre seed funding to support its business growth.

IntelliPalp Dx Technical Director, Femi Johnson, said: “Since incorporating IntelliPalp Dx earlier this year, we’ve been focused on advancing our ProstaPalp device to confirm its accuracy as a diagnostic tool for prostate cancer. Facing into the COVID-19 pandemic at such a critical stage in our company development was challenging and this funding comes at a welcome time to allow us to solidify our investment package and access valuable advice from individuals with experience in medical device companies.”

Researchers at University of Strathclyde were awarded £70,000 for innovative cyber-security deception solution, Lupovis. The project uses artificial intelligence to lure hackers away and prevent breaches of network systems.

The team is in the process of creating a Strathclyde spinout company to commercialise the system focussing on critical infrastructures, starting with the energy sector as an initial market as a way of protecting energy supplies.

Professor Ivan Andonovic from Strathclyde, who will be a director of the spinout company, added: “There are currently no similar solutions, as decoys are usually static and once a decoy is exploited by a cyber-criminal, they can continue moving towards valuable assets in the network. Lupovis offers a dynamic system turning networks from a flock of sheep to a pack of predators.”

The additional funding will allow researchers to continue driving forward their plan to successfully commercialise the solution.