Seven startups from the North of England have become the first businesses to receive a share of £1.4m in funding from PraeSeed, a six-week cohort-based investment programme for early-stage businesses launched by Praetura Ventures and the Northern Powerhouse Investment Fund II.
In total seven businesses have secured investment from PraeSeed, an initiative founded by the Manchester-based VC Praetura Ventures and funded by NPIF II – Praetura Equity Finance, which is managed by Praetura as part of the Northern Powerhouse Investment Fund II.
Launched in May, PraeSeed’s mission is to identify startup and early-stage investment opportunities for NPIF II, while providing founders at the pre-seed stage with new opportunities for additional funding and support with investor readiness.
For its inaugural year, PraeSeed hosted 12 businesses from various sectors and regions, with each invited to take part in workshops and presentations on all aspects of scaling a business, including creating a go-to-market strategy, navigating financial modelling and tackling fundraising. As well as Praetura’s investment and portfolio teams, the sessions were hosted by later-stage founders and experts from the business landscape. Of the 12 startups that took part in the programme, seven are now receiving £200k worth of funding each to support their scaling plans,
Among the seven companies is Lancaster University spinout CCI Photonics, which is developing a point-of-care test (InfectiScanTM) to help clinicians accurately detect infection types in patients, so the best antibiotic can be prescribed, reducing antimicrobial resistance.
PraeSeed is also backing Robotiz3d, a SciTech Daresbury-based University of Liverpool spinout, which has developed a suite of products to detect and repair cracks and potholes, including two autonomous vehicles and a specialised camera system.
Two businesses from Manchester have also received investment to aid their growth. They are North AI, which helps global media and entertainment companies make smarter commissioning and licensing decisions using AI, and Aquaint, which has created a user-friendly workflow and compliance app for staff at hospitality and food services companies to improve communication across everything from allergens to task management.
Joining these businesses are ScrubMarine of Whitehaven in Cumbria, which is developing a submersible remotely operated vehicle (SROV) to clean marine vessels affected by a build-up of unwanted organisms (biofouling), such as algae and barnacles, and BidScript, a Warrington-based startup that has created machine learning and artificial intelligence powered software to transform the bid management process for organisations going through resource intensive tendering processes.
The final business to receive funding from PraeSeed is WAC, a B2C app for hourly workers to record and track their hours to ensure they are paid accurately, with functionality that enables staff to raise discrepancies to be resolved by employers.
In addition, the final cohort also features a diverse founder in every business, with 29% of companies founded by a female founder and 86% of the companies founded or co-founded by a founder with a BAME background.
Jessica Jackson, investment manager at Praetura Ventures and PraeSeed lead, said: “We were inundated with applications for our inaugural PraeSeed cohort, with 200 businesses applying to take part, highlighting that the north is alive with innovation. Our intention was always to invest in a limited number of companies that truly stood out, and that’s where we have arrived at with these seven businesses, whose founders displayed tenacity, a willingness to learn and, above all, the talent required to scale a successful business. Equally, we’re incredibly proud of the level of diversity displayed across our final six companies, with entrepreneurs from diverse backgrounds and female founders receiving the funding needed to hit new milestones and enter a new chapter of growth.”
Simon Cunnington, director at British Business Bank, said: “From AI to underwater technology, this cohort of companies securing valuable equity finance truly exemplifies the entrepreneurial spirit and technological prowess of the North of England. New innovations that are solving real world issues is what helps create a thriving economy, and we are excited for the Fund to play a crucial role in the early stages of these businesses’ growth journeys.”
The £660m Northern Powerhouse Investment Fund II (NPIFII), which has funded PraeSeed through NPIF II – Praetura 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 and businesses wishing to take part our encouraged to follow Praetura Ventures on LinkedIn or X for more details.
CCI Photonics and BidScript were advised by Darren Ormsby, partner at DWF Law LLP; Robotiz3d was advised by Daniel Hall, partner, and Jonathan Edwards, corporate associate, at Eversheds Sutherland; North AI was advised by Emma Norman-Jones, corporate solicitor at Brabners; Aquaint and ScrubMarine were advised by Kelly Clarke, legal director, and Jennifer Murphy, senior associate, both in the corporate team at TLT LLP; WAC was advised by Carly Gulliver, partner, and Gavin Smith, managing associate, at Addleshaw Goddard.
A team from Irwin Mitchell LLP, led by partner Adam Kaucher, acted on behalf of Praetura Ventures for all the above deals and supported the legal framework for the programme.
