£400k Investment for Innovative Technology Company

1st April 2008

A company which has developed innovative technology that could reduce the UK’s CO2 emissions by over half a million tonnes per year has been backed by Merseyside Special Investment Fund’s Liverpool Seed Fund.

2D Heat Limited has produced a revolutionary heating element which can be used on a range of home appliances including ovens, kettles, tumble dryers and refrigerators. The product replaces the traditional coil wire elements found in white goods and is up to 50% more energy efficient.

The new technology also simplifies the complex and energy intensive manufacturing process using a direct hot-spraying method.

The company recently won Shell’s prestigious Springboard Award for the UK Central Region and was runner up in the national final, beating off competition from 130 other entrants from around the UK.

2D Heat has raised a funding package of over £400k which included £150k from the Liverpool Seed Fund and cash from various private investors. Liverpool Ventures has advised 2D Heat throughout the funding process and continues to support the business.

The company, which was set up in 2004, has recently relocated its head office to Liverpool from Warrington and employs four staff.

Managing Director, John Lewis said: “Our technology offers significant advantages to both manufacturers and consumers. It is energy efficient, the heat up time is similar to that in gas appliances and the small elements give a lot of flexibility in terms of design.  Also, the components used to make the product are not harmful to the environment making it much easier to dispose of appliances at the end of their life.

“There are already several blue chip companies interested in using the technology and the investment will help fund the cost of bringing the product to market.  It will also be used to install a pilot line which will enable us to develop the technology for potential customers and modify specific element designs to fit their requirements.

“It is quite difficult to get funding for early stage technology-based businesses but MSIF has been very supportive and the advice from Liverpool Ventures has been invaluable.”

Mike Bakewell, investment manager of MSIF’s £27m Liverpool Seed Fund said: ”We believe there are significant market possibilities for this technology. Its energy efficiency has advantages both for the environment and the potential cost saving to the end user.”

Janet Butler, business consultant with Liverpool Ventures said: “In addition to domestic goods there is scope for this technology to be used in lots of other areas and we believe it has considerable global potential.”

Legal advisors involved in the transaction were Lynn Rathbone of Weightmans who acted for the Fund and Louise Jackson of Laytons acted for the company.

Acceleris plc provided corporate finance advice.

Ends

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Photo shows L-R – Mike Bakewell (Liverpool Seed Fund) Janet Butler (Liverpool Ventures) John Lewis (2D Heat)

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