Mercia Technologies increases investment in audio firm with £1.9m injection

Specialist funder Mercia Technologies has announced a follow-up investment of almost £2m into a firm pioneering the development of new audio equipment.

Mercia has invested £1.9m as part of a £3.1m syndicated round into University of Warwick spinout, Warwick Audio Technologies. The investment is alongside GuoGuang Electric Co and a number of sophisticated private investors.

Mercia originally supported Warwick Audio through its third party managed funds, before it became a direct investment ‘Emerging Star’ in December 2014. In total, Warwick Audio has received £4.3m of direct investment from Mercia and the group now holds a 64% equity stake in the business.

The funds raised via this new investment will be used to continue product development of Warwick Audio’s High-Precision Electrostatic Laminate (HPEL) technology, a high-end headphone system called the Sonoma Model One, and to expand sales of these electrostatic headphones.

The funds will also be used to help the company take advantage of new commercial opportunities which have been identified in the automotive market.

Over the last 18 months the strong performance of the HPEL transducers has been evidenced through public reviews; the Sonoma Model One has received positive reviews from both audiophile reviewers and leading figures in the professional recording industry.

Mike Grant, CEO of Warwick Audio said: “Warwick Audio has achieved a great deal in the last 18 months. We are delighted to have secured this new round of funding and in particular to have received investment from GGEC and several new investors. The amount raised exceeded our original funding target and represents a vote of confidence in both the team and the growth strategy we are pursuing, exploiting the new market opportunities we have identified, including in particular the automotive sector.”

Mark Payton, CEO of Mercia Technologies said: “Warwick Audio is making good progress in achieving commercial milestones. This latest round of investment coupled with the strengthening of the board last year through the appointment of Gary Waters, former Vice President and General Manager of BOSETM Corporation as a Non-executive Director, demonstrates the strong platform being built.

“The company has a robust pipeline of opportunities in a range of sectors and Mercia is confident that the Warwick Audio management team will deliver shareholder value over the medium term.”