Seed Fund Backing Boosts High Technology Business

20th Dec 2005

Merseyside Special Investment Fund has backed a high tech company as part of a package totalling nearly £1/2m.

Covelus is a software development company which produces state-of-the-art routing software that enables Anoto digital pen and paper technology to function across multiple platforms and applications.

MSIF's newest fund, the £27m Liverpool Seed Fund, has injected £300,000 into Covelus together with a second round investment of £150,000 from lead investor, RisingStars Growth Fund which is managed by Enterprise Ventures. The Seed Fund backing is commercialisation funding which will be used to take the company through its next phase of development, and takes the total investment to date up to £1 million.

Swedish company, Anoto, owns the technology behind digital pen and paper; and Covelus provides the hidden 'infrastructure' platform which glues the technology together.

Covelus' management team comprise key ex-Anoto employees with extensive knowledge in digital pen & paper solution development, as well as core Anoto Component technology.

Entrepreneur David Bell is the CEO of Covelus. He said: "We have a powerful combination of advanced technology, a highly skilled & experienced team and a strategic partnership with a global player in a growing marketplace. The funding we received means we are now in a position to take the company to the next level."

Michael Bakewell, Investment Manager of the Liverpool Seed Fund, said: "We are delighted to be supporting Covelus. The company has developed exciting technology with global commercial potential and we will watch their progress with interest."

Covelus currently has offices in Liverpool and Sweden. Ten staff are employed although this is expected to grow significantly over the next three years. Turnover is expected to hit £2m over the next two years.

Julian Viggars EV Investment Director said: "We are obviously delighted to be able to provide further support to Covelus at this important stage in their development and the investment will enable the company to commercialise their innovative and exciting product."

Lawyers advising on the deal were Stuart Scott-Goldstone of Manchester-based firm, Laytons acting for MSIF and Enterprise Ventures with Mark Rathbone of Liverpool based Brabners Chaffe Street, acting for Covelus.

Ends

For further information contact Angela White at Merseyside Special Investment Fund on 0151 236 4040

Back to Liverpool Seed Fund News and Deals

Back to News and Deals

Pic Shows (L-R) Dave Bell CEO, Covelus with Michael Bakewell, Investment Manager, Liverpool Seed Fund

Back to Liverpool Seed Fund News and Deals

Back to News and Deals