Magnomatics raises finance to revolutionise vehicle market

Chris Kirby, CEO of Magnomatics

Sheffield-based Magnomatics has raised £2.5m to fund the development of its magnetically geared motors for the hybrid and electric vehicle market.

Magnomatics, which was spun out of The University of Sheffield in 2006, develops novel proprietary magnetic transmissions and ultra compact and efficient motors and generators for some of the world’s largest multinationals.

It is active in a range of industries, including renewable energy, automotive, aerospace and defence.

Magnomatics is a portfolio company of Fusion IP, the university IP commercialisation company that turns world-class research into business.

The funding will enable the Magnomatics to complete the development of its magnetically geared motors for the burgeoning electric and hybrid vehicle market. The system offers the motor vehicle manufacturers a lighter, quieter, more efficient direct drive motor.

IP Group will invest £1.06m, Finance Yorkshire will provide match funding from its Equity Linked Fund and Fusion IP will invest £366,000.

The first tranche of funds, totaling £2.25m have been invested and the second tranche of £246k is dependent on certain milestones. When the full £2.5m funds are invested, Fusion’s shareholding will be 31 percent.

Chris Kirby, CEO of Magnomatics, said: “Magnomatics is delighted to now have the funding it requires to expand the business and take its fully proven magnetic transmissions and ultra-efficient motors through to mature product offerings.”

David Baynes, CEO of Fusion, commented: “This is a major funding for Magnomatics that will enable them to develop their novel magnetic transmissions and compact, ultra-efficient motors for key vehicle markets.

“Magnomatics has made major technological advances over the last two years and has an impressive list of development contracts with many of the world’s leading manufacturers. We look forward to working with the management team and new investors, as Magnomatics bring these novel systems to market.”

Andrew Burton, from Finance Yorkshire, added: “This is a great example of Finance Yorkshire working alongside other investors to provide companies with the funding needed to help them expand.

“Magnomatics is a high-technology company which has turned ground-breaking research in Sheffield into a commercial enterprise, developing products and services for global customers.

“The strong management team has now been further enhanced with the addition of ex-Ricardo Managing Director, Bob Allsopp, as a non executive director, giving further market knowledge to the team.”

Finance Yorkshire provides seedcorn, loan and equity linked investments, ranging from £15,000 to £2m to help a range of small and medium sized businesses to meet their funding requirements for growth and development.

Finance Yorkshire is supported financially by the European Union. It has attracted £30million investment from the European Regional Development Fund (ERDF) as part of Europe’s support for the region’s economic development through the Yorkshire and Humber ERDF Programme, £15million from Yorkshire Forward’s Single Programme, and £45million match funding from the European Investment Bank.

Note: this news article is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire