This week has seen a flurry of significant business activities in the North East, reflecting a positive outlook for the region.
Several companies have secured contracts, investments, and acquisitions, highlighting the growing confidence in various sectors.
Prolific investor Maven Capital Partners has expressed optimism about the health of the North East’s deals market. Rebecca MacDermid, an investment manager at Maven’s Newcastle office, noted a strong interest in the Northern Powerhouse Investment Fund II (NPIFII) and Maven’s other funds.
The easing business headwinds have renewed the appetite for growth capital, helping Maven build a robust pipeline of deals. Since March, Maven has received 150 applications for the NPIFII, targeting entrepreneurs at the pre-revenue and ideas stage.
Haptics technology specialist Peratech has completed a $31.5m (£23.7m) investment round led by Dark Matter Partners. The County Durham and North Yorkshire-based firm, which develops force sensing technology for laptops, tablets, and game controllers, termed the equity funding oversubscribed.
The company’s proprietary ‘quantum tunnelling composite’ (QTC) system underpins its technology, which can sense applied force. Scott Bell, joint managing partner at Dark Matter Partners, highlighted Peratech’s global commercial traction and strong IP foundations.
Seaham’s Low Carbon Materials has obtained £3m in investment to support its expansion.
The funding, led by Ada Ventures and supplemented by Green Angel Ventures, Northstar Ventures, Innovate UK, and Deloitte, is set to propel the company’s rapid growth. Low Carbon Materials is renowned for its sustainable construction products, especially its carbon-negative aggregate, OSTO.
Matt Penneycard from Ada Ventures emphasised the opportunity to innovate in the CO2-heavy construction industry.
Newcastle-based offshore technology company Kinewell Energy has clinched two significant contracts with European renewable energy producers.
The contracts will see Kinewell’s KLOC software utilised in wind farm projects, marking a pivotal growth phase. Dr Andrew Jenkins, the company’s CEO, iterated the potential £4 trillion clean energy investment market by 2030, bolstering Kinewell’s growth trajectory.
Additionally, with the support from the TIGGOR fund, Kinewell has recently expanded, hiring five new staff members.
Metalwork group Fablink has been bought out of administration by Wharfside Industrials, saving approximately 200 jobs in the North East.
The deal rescued around 500 jobs overall, despite challenges Fablink faced in recent years, such as delayed grant funding and customer failures leading to bad debt.
Fablink’s County Durham division reported operating losses of £533,000 despite a record £26m turnover in 2023, underlining the significance of the acquisition.
Chris Pole, managing director at Interpath and joint administrator, praised Fablink’s reputation for innovative manufacturing processes and expressed optimism for the group’s new future.
The recent activities in the North East’s business landscape highlight a positive trend in securing significant investments, contracts, and acquisitions.
This momentum across various sectors indicates a bright economic future for the region, fostering growth and job security.