NEPIC Focal Point, March 2014
The role of Northstar Ventures in supporting innovative businesses in the North East is under the spotlight as one of its early-stage investments floated in the Alternative Investment Market.
Durham University spin-out Applied Graphene Materials (AGM) raised £11m to ramp up its production from the floatation which valued the company at around £26.2m. Such was the demand for the company’s shares that early trading saw this valuation soar to over £70m.
The business only incorporated three years ago and received its initial support from Northstar. The venture capital company provided £100,000 from the £15m Finance for Business North East Proof of Concept Fund two months after AGM’s launch, and has since invested over £0.5m more alongside other investors.
The brainchild of Prof Karl Coleman, AGM developed and owns a ground-breaking process for the production of high purity graphenenanoplatelets – a super-strong ‘miracle material’ with extraordinary mechanical, electrical and thermal properties with a huge variety of uses in technology.
Dr Stephen Price, Investment Manager at Northstar Ventures, said: “Northstar Ventures has supported Applied Graphene Materials right from start-up to this significant milestone in its development. We quickly recognised the company’s huge potential and are delighted that this successful fundraising provides it with the platform to grow a very significant technology business in the North East.
“The huge success of AGM in just three short years, moving from an academic’s idea to its base at the Wilton Site on Teesside and now to floatation, shows what can be achieved by ambitious North East businesses that received the right support.”
Northstar is focussed on North East businesses that need investment to reach their high-growth potential. It works with a large number of local, national and international co-investors and through these links, it can attract further investments for the businesses it supports.