Satellite communications specialist Sofant Technologies has closed a funding round of approximately £6.25 million as it prepares to launch into commercial production.
The fundraising was led and syndicated by existing investor EMV Capital Partners and follows the appointment earlier this month of space industry veteran Will Whitehorn as chairman of Edinburgh-based Sofant. Mr Whitehorn's arrival is said to reflect the company's shift from research and development into international expansion.
Set up in 2011 as a spin-out from the University of Edinburgh, Sofant is led by chief executive David Wither. The company's radio frequency microelectromechanical system (RF MEMS) significantly reduces power consumption and eliminates the need for complex cooling systems, a key barrier to scaling up modern satellite communications and defence platforms.
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“EMV Capital’s anchoring of this pivotal funding round reflects our continued confidence in Sofant’s breakthrough low-power RF MEMS technology, which we believe represents a step-change in the architecture of next-generation wireless systems, with the potential to reshape products across defence, aerospace, satellite communications and high-performance enterprise markets," EMV chief executive Ilian Iliev said.
“This investment fits closely with our investment thesis of providing decisive hands-on support at key value inflection points of our portfolio companies, and to help attract strategic finance. We look forward to working closely with the Sofant team as they scale into global markets and unlock the significant value we believe this technology can create.”
Mr Wither said the funding marks a "seminal" moment for Sofant, which has recently achieved a number of technical and commercial milestones. In October the company successfully demonstrated the world's first fully-functioning Ka-band transmit array using its RF MEMS beamforming integrated circuit chips.
The funding round included £750,000 of new equity investment from EMV, along with backing from Scottish Enterprise and the National Security Strategic Investment Fund (NSSIF).
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A total of £1.1m of new equity was raised along with the conversion of approximately £4.7m of existing loans into equity. A further £430,000 of advanced subscriptions rounded out the funding package.
“We are pleased to have secured this significant investment from our existing shareholder base, and to welcome NSSIF as a new strategic shareholder," Mr Wither said.
"This support is a testament to the disruptive potential of Sofant’s technology and the remarkable progress our team has made in recent months. With this additional capital, we are positioned to accelerate our commercial deployment and redefine what is possible in wireless communications."
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