West London based heat pump specialist set to expand via six figure investment

NetScientific, the deep tech and life sciences VC investment group, announces that its portfolio company Ventive has successfully closed a £900k investment.

The Investment included £316k from existing shareholders and the conversion of two existing convertible loans (and interest thereon) valued at £600k. This is the first closing as part of Ventive’s proposed £1m to £1.5m investment programme, with further new investment anticipated prior to 30 April 2024 in one or more additional closings.

This additional funding is complemented by ongoing non-dilutive funding from, amongst other grants awarded, a £1.5m BEIS grant secured in 2022, as well as a recently awarded £100k UK Government grant focused on ‘net zero HVAC’ systems.

The investment was led and syndicated by EMV Capital, the Company’s wholly owned venture capital and corporate finance firm. It follows the initial investment led and syndicated by EMV Capital that was announced (via RNS Reach) on 20 October 2022, where EMV Capital secured an initial 16 per cent stake in partial settlement of its fees.

Since that initial investment, the value creation team of EMV Capital has worked closely with Ventive to stabilise and develop its business plan and product range.

The proceeds of the investment will support the completion of the design and test phase and factory build for Ventive’s modular heat pumps, further enhancements to its passive air ventilation product range, and build-up of its marketing and sales capacity to drive sales of its existing product range.

The Ventive balance sheet is also streamlined following the conversion of the convertible loans. Following completion of the investment, the total equity holding of the NetScientific group in Ventive is 11 per cent on a fully diluted basis, which includes the partial settlement of its corporate finance fees relating to the Investment.

This holding equates to a post-investment fair value of £893k, an increase of 1,617 per cent from the £52k reported as at 31 December 2022. In addition, following the introduction of investors to Ventive by EMV Capital under its capital efficient model, NetScientific’s capital under advisory with Ventive is now 23.8 per cent of the fully diluted share capital.

Ventive designs and manufactures intelligent heating and ventilation solutions to make buildings healthy, comfortable, efficient, and affordable. Its products address two high priority market segments: air quality and sustainable heating.

Rob Morrison, Managing Director of Ventive, commented: “This investment is a strong endorsement of our work, and recognition of Ventive as a pioneer in the design of naturally intelligent ventilation systems to deliver fresh air at minimal energy cost.”

By Matthew Neville – Senior Correspondent, Bdaily

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