£500k gives laser firm bright future
By JIM STANTON
HERIOT-WATT technology spinout PowerPhotonic has landed £500,000 of funding in a deal led by Edinburgh-based investor Archangel, opening the door for the group to "lead the way" in its field worldwide.
The injection of capital will allow the company to compete better in the £2.6 billion-a-year market for high-power industrial laser and optical communications.
The firm, which was founded in 2004 to exploit technology evolved at Heriot-Watt, has developed world-leading micro-optical fabrication technology, which restores and conserves brightness in high-power diode laser systems.
The company was the brainchild of a Heriot-Watt team comprising Dr Roy McBride, Professor Denis Hall and Professor Howard Baker, veterans in the field of lasers and photonics technologies for industrial purposes.
John Waddell,chief executive at Archangel, said: "Roy came to us with an outline plan over a year ago and we worked with him, his colleagues and with corporate finance specialists DC Consulting, to build a suitable proposal and funding package."
Archangel has drafted in independent chairman Nigel Hedley to the Power board, as well as adding its own representative Clovis Younger, who has been a programme manager for BAE's Targeting Lasers Electro Optics Group. Philip McNaull of Heriot-Watt University also joins the board.
Dr McBride said Power was now operating on a worldwide stage, "with high levels of interest" from the makers of high-power lasers, who believe the Edinburgh firm's technology can bring them increased efficiency and gains in market share.
"This funding enables us to invest in new hardware, as well as giving us the leverage to exploit the markets that we have already begun to open up," said Dr McBride.
"Our technology is unique and will have a major impact on the global market for high power lasers.
"As a Scottish company, funded by Scottish investors and with a world-class team, we will be leading the way."
Although Archangel led the round of funding, it syndicated part of the equity to Borders-based angel syndicate Tweed Renaissance Investors Capital (TRI Cap).
Its chairman, Robert Dick, said: "This is an exciting investment for our members and we are delighted to be associated with Archangel in the funding of this potentially important venture.
"PowerPhotonic has demonstrated that its technology has global reach, and we look forward to working with the team to take the business forward."
Angus Hay, of DC Consulting, added: "This is a further example of our university sector's strength in developing world-leading technologies which have clear commercial applications and value.
"Scotland's venture capital community is very interested in supporting this type of venture, which has already proven itself in an extremely vibrant marketplace."
Archangel was originally founded in Edinburgh in 1992. The funding syndicate now comprises around 80 investor members, and it invests around £9 million a year in early-stage Scottish companies.
The firm, which was founded in 2004 to exploit technology evolved at Heriot-Watt, has developed world-leading micro-optical fabrication technology, which restores and conserves brightness in high-power diode laser systems.
The company was the brainchild of a Heriot-Watt team comprising Dr Roy McBride, Professor Denis Hall and Professor Howard Baker, veterans in the field of lasers and photonics technologies for industrial purposes.
John Waddell,chief executive at Archangel, said: "Roy came to us with an outline plan over a year ago and we worked with him, his colleagues and with corporate finance specialists DC Consulting, to build a suitable proposal and funding package."
Archangel has drafted in independent chairman Nigel Hedley to the Power board, as well as adding its own representative Clovis Younger, who has been a programme manager for BAE's Targeting Lasers Electro Optics Group. Philip McNaull of Heriot-Watt University also joins the board.
Dr McBride said Power was now operating on a worldwide stage, "with high levels of interest" from the makers of high-power lasers, who believe the Edinburgh firm's technology can bring them increased efficiency and gains in market share.
"This funding enables us to invest in new hardware, as well as giving us the leverage to exploit the markets that we have already begun to open up," said Dr McBride.
"Our technology is unique and will have a major impact on the global market for high power lasers.
"As a Scottish company, funded by Scottish investors and with a world-class team, we will be leading the way."
Although Archangel led the round of funding, it syndicated part of the equity to Borders-based angel syndicate Tweed Renaissance Investors Capital (TRI Cap).
Its chairman, Robert Dick, said: "This is an exciting investment for our members and we are delighted to be associated with Archangel in the funding of this potentially important venture.
"PowerPhotonic has demonstrated that its technology has global reach, and we look forward to working with the team to take the business forward."
Angus Hay, of DC Consulting, added: "This is a further example of our university sector's strength in developing world-leading technologies which have clear commercial applications and value.
"Scotland's venture capital community is very interested in supporting this type of venture, which has already proven itself in an extremely vibrant marketplace."
Archangel was originally founded in Edinburgh in 1992. The funding syndicate now comprises around 80 investor members, and it invests around £9 million a year in early-stage Scottish companies.
The full article contains 484 words and appears in Edinburgh Evening News newspaper.
Last Updated: 14 January 2008 11:45 AM