Technology funder adds further investment to growing biotech

Specialist funder Mercia Technologies is investing a further £500,000 into one of its portfolio companies.

The Warwickshire-based investor, which specialises in funding and scaling innovative technology businesses with high growth potential, is ploughing the money into Oxford Genetics, a synthetic biology company with significant expertise in DNA design.

The investment follows the £1m of additional capital injected by Mercia into the business last October ito enable it to expand its management team, board, patent portfolio and commercialisation strategy.

Oxford Genetics joined Mercia’s ‘Emerging Stars’ portfolio of direct investments in December 2015 having first received investment from the group’s managed funds in 2013, as one of the founding investors.

The company has now received a total of £5.8m in grants and investment. Mercia currently has a direct equity stake of 47.9% in the business.

This latest investment will be used to expand Oxford Genetics’ reach into the US market and further drive sales growth alongside its recent access to CRISPR technology, whilst continuing to support its R&D work at its base on the Oxford Science Park.

Mercia said the biotech had continued to make significant progress, including 100% year on year growth in turnover and the successful award of £1.9m of non-dilutive grants in March 2017. This has been driven by development of the patent portfolio, which now consists of one granted patent SnapFast™ and a further five submitted applications, with a plan to file another four in 2017.

Furthermore, the board has been expanded with the appointment of David Hames as chairman, Dr Matt Baker as Non-Executive Director and Dr Paul Brookes as Commercial Director.

Dr Mark Payton, CEO of Mercia Technologies, said: “Over the last 12 months, Oxford Genetics has clearly demonstrated its ability to create market leading technologies and has been bolstered by an industry leading research and development team. Life Sciences and Biosciences is a key sector for Mercia which we believe will deliver significant shareholder value over the medium term.”