21 Jan 2020
North East company Advanced Electric Machines (AEM) has completed a Series A funding round for £1.9m, which makes a total of over £5m of funds secured in 2019.
Since forming in March 2017 AEM, a spin-out from Newcastle University which designs and manufactures electric motors and drive technologies for the transport sector, has achieved milestones including:
• Winning collaborative research and development projects worth over £16m (receiving over £4.5m of grants and loans directly), starting product development programmes with over 25 organisations including Bentley Motors and CNH International.
• Moving to a new 1200m2 facility in Washington capable of building 50,000 motors p.a. and achieving ISO9001 for design and manufacturing processes, driving growth of the team to 17 people.
Having already received their first large commercial order, AEM is now working on opportunities across four continents and six different sectors including automotive, aerospace, marine and energy.
The funding round, led by Northstar Ventures which has invested £750,000 from the North East Innovation Fund, supported by the European Regional Development Fund and managed by Northstar Ventures, will support the next phase of growth.
Prof. James Widmer, CEO, said “This latest investment raised almost 60% additional capital above the original target, it will allow AEM to invest in our design and manufacturing capability more quickly than we expected. We are grateful to Northstar, Saker, Tevva and the many small investors who are now supporting us in our vision of manufacturing the most sustainable electric motor technologies on the planet here in the UK.”
Alex Buchan, Investment Manager at Northstar Ventures, said “Electrification is a key enabler for many sectors and we have real strength in the technologies that will drive it here in the region. We are pleased to be able to support one of the UK’s rising stars in electric motor design and manufacture and help them create jobs in the North East.”