Member Article

Manchester-based The Co Angel Investment service completes first deal

Manchester-based The Co Angel Investment service, has completed its first deal by supporting Gelexir Healthcare with their first close of £414k of its current £950k funding round.

The Combined Authority of Greater Manchester have taken a new and innovative approach to helping exciting young businesses find the early stage equity they need to build and grow.

Co, which launched in November 2014, supports businesses access equity investment from Syndicates of Angel investors, the Angel Co Fund and VCs from across the region and the wider UK. The Greater Manchester Combined Authority has funded this service to better facilitate investment early stage deals for businesses, with the first deal now closed.

The Co service has already generated a qualified pipeline in excess of £40m in just a few months and is aiming to leverage £10m of investment in each year into businesses in Greater Manchester.

Gelexir, a University of Manchester spin-out, has developed a hydrogel to relieve back pain by allowing cells in the disc to get back to “normal” functioning, hence relieving the cause of pain.

Gelexir is led by spine surgeon and veteran ex-medical device corporate executive, Philippe Jenny, and has received investment from sector specialist investors including The North West Fund for Biomedical, managed by SPARK Impact (£250k), the Central Manchester Foundation Trust and a number of overseas and local angel investors.

The funding is needed to take the business through a pivotal pre-clinical study and into first “in man” studies. The Co team will continue to work with Gelexir to help complete the round.

Chief executive Manchester City Council, Sir Howard Bernstein, said: “Manchester is committed to its strategic and operational support for business growth and Co Angel Investment are just one of the services we have supported which is making a difference.

“We knew when we launched Co that Manchester held huge potential for a better, lower risk investment platform: the growing businesses like Gelexir are here, the Angels are here and now we have the infrastructure to bring them together to release further potential in the region.”

Executive director Gelexir, Hans von Celsing, said: “The team at Co have been instrumental as part of the process to date in giving strong and impartial advice, providing us links to potential investors, and generally supporting us in the fundraising process.

“The team have been brilliant in preparing us for investment, supporting angel investors with their due diligence scoping and execution and approaching institutional investors.

“We are looking forward to continuing our excellent working relationship with the Co Angel team to complete this current round of funding”

This was posted in Bdaily's Members' News section by Sophia Taha .