Electrospinning Company raises £4.5m

The Electrospinning Company (Electrospinning), a Downing Ventures portfolio company and a leader in the development and manufacture of nanofibrous biomaterials for use in tissue regenerative devices, has completed a £4.5m ($6.3m) fundraising round, led by US materials science company Confluent Medical Technologies Inc. (Confluent) as a strategic investor. New investor Intuitive Investments Group plc also participated, alongside existing investors Downing Ventures, STFC Innovations Ltd and individual business angels. The proceeds of the fundraising round will be used to enhance the company’s capability and capacity through semi-automation, enhanced materials processing and quality systems.

Confluent is a specialist in the application of materials science to implantable products such as valves, grafts and catheters in various organs. The investment provides a partnership opportunity for the two companies – for example, Electrospinning’s proprietary electrospinning process could be expected to expand design options in the structural heart market and fully automate the process of attaching biomedical textiles to heart valve frames. Confluent’s CEO and President Dean Schauer is joining Electrospinning’s Board as a result of the strategic investment.

With its specialist electrospinning technology platform, Electrospinning operates a Contract development and manufacturing business model, generating revenues and IP to further strengthen its proprietary approach. It has a range of customers in different therapeutic areas across the world, including one which uses Electrospinning’s materials in its FDA-approved device. The company’s revenues are growing rapidly year-on-year.

Ann Kramer, CEO of Electrospinning, said, “This fundraising round, our largest to date, will be used to drive growth by expanding our capability to deliver medical devices and device components to our customers at the right quality and cost. Electrospinning would like to welcome Confluent as a strategic investor and to its Board, where we look forward to working with CEO and President Dean Schauer. We’d also like to welcome Intuitive Investments Group plc, and thank it and our existing investors for their support.

The investment in Electrospinning reinforces Confluent’s strategy of Applying Materials Science to MedTech Innovation,” said Dean Schauer, CEO and President of Confluent. “This partnership creates an opportunity for our two companies to facilitate further expansion of innovative structural heart products on behalf of our customers.”

“Downing Ventures is happy to continue its support for The Electrospinning Company. The electrospun scaffolds developed by The Electrospinning Company provide an ideal environment for supporting the growth of cells in 3D. Such biomaterial can be implanted, alone, or as part of a medical device, to guide cells to heal damaged tissues and to minimise scarring. With its technology further supported by Downing Ventures and validated by an industry leader like Confluent, we are sure that The Electrospinning Company will continue to grow and play a significant role in the development of unique biomaterials for regenerative medicine,” adds Will Brooks, Investment Director and Downing Ventures.

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About The Electrospinning Company

The Electrospinning Company offers contract services to design, develop and manufacture nanofibrous biomaterials for medical devices. Based on the electrospinning platform technology, they use their expertise and experience to support clients in a range of different therapeutic indications, including the supply of the first electrospun biomaterial to be incorporated into an FDA-approved medical device. The Company is also using its know-how to develop proprietary materials for targeted out-licensing opportunities, aiming to capture more of the end-market value created by its innovations and expertise. The Company was a spin-out from the UK Science and Technology Facilities Council (STFC) and is located on the Harwell Innovation Campus near Oxford, UK. Further information can be found on the company’s website https://www.electrospinning.co.uk/.

About Confluent Medical Technologies

Confluent Applies Materials Science to MedTech Innovation. Confluent’s engineered solutions to the most challenging design problems enable our OEM medical device customers to offer life-saving implantable products.  Our customers rely on Confluent for materials science and associated manufacturing expertise which is critical to the function and value of their most demanding, high growth products – proprietary expertise which spans processing of high purity Nitinol, ultra-high density knitting of biomedical textiles and precision laser treatment of specialty polymers.  Confluent partners with leading OEM’s to create a selective product portfolio which includes such complex applications as transcatheter heart valves, neurovascular implants, endovascular stent grafts and advanced smart catheters.  With facilities in Fremont and Laguna Niguel, California; Warwick, Rhode Island; Windham, Maine; Austin, Texas; Chattanooga, Tennessee; and San Jose, Cost Rica, Confluent has earned the confidence of the leaders in the medical device community through a proven track record of innovative materials science, engineering and manufacturing.  Additional information about Confluent is available at www.confluentmedical.com.

About Downing Ventures

Downing Ventures invests in innovative technology companies and pioneering founders across the globe with Early to Growth Stage funding across the Deep Tech, Enterprise and Healthcare sectors. The Downing Ventures team spans the UK, USA and Israel giving our portfolio a global perspective and expertise. The team are scientists, engineers, founders, visionary thinkers and story tellers. We have a portfolio of 71 companies as at September 2020. To find out more, visit www.downingventures.com

About Intuitive Investments Group plc

IIG is a recently established investing company, seeking to provide investors with exposure to a portfolio concentrating on fast growing and/or high potential Life Sciences businesses operating predominantly in the UK, continental Europe and the US, utilising the Board’s experience and in particular that of the Chairman, David Evans, to seek to generate capital growth over the long term for shareholders.

Date published:

04 May 2021

Practice area:

Healthcare