Chromacity, which develops ultrafast fibre lasers for a wide range of scientific and industrial applications, has closed a £1.2 million funding round involving existing investors, Kelvin Capital, Eos and Scottish Enterprise, as well as new investor ESM Investments.
The firm, which was founded in 2013, will use the funding to expand its workforce, particularly within its manufacturing and research and development divisions.
Chief executive Shahida Imani said: “This new funding will enable us to expand our team and accelerate Chromacity’s growth, both commercially and technologically.
“We are seeing significant traction with major industrial companies in China and Japan, who are very interested in the high average power and broad wavelength coverage of our systems, and it’s important we are funded to accelerate growth and capitalise on these opportunities.
“We’re delighted that our existing investors have continued to support us in our mission to revolutionise fundamental research and industrial applications with a new generation of affordable ultrafast lasers, equipped with plug-and-play functionality.
“It’s also a great pleasure to welcome ESM, who will be a key investment partner in our future success.”
Having initially commenced its growth raise last year, the firm has now closed the round, after securing a second tranche of funding that included the new investment from Stirling-based ESM.
Ian Stevens, Chromacity’s non-executive chairman, said: “Chromacity has continually demonstrated that, not only does it have the disruptive technology needed to drive new ultrafast laser applications, but that it can also innovate its business model in the face of challenging circumstances, such as a global pandemic.
“With this funding round, the company’s investors, both new and old, have recognised these qualities and the significant opportunity that exists to bring ultrafast laser technology into new, and as-yet untapped, markets.”
ESM Investments said it had invested more than £200,000 in the laser business as part of its funding round.
Established by Steven Morris in 2011, ESM has been described as a “unique blend of technology entrepreneurs, experienced investors, corporate finance, experienced transaction and business people”.
Morris said: “Chromacity has a clear and compelling strategy. Route to success, contacts, distribution and, most importantly, hugely desirable products have all been clearly thought through and articulated to ESM as an exciting investment opportunity for our members.
“We are delighted to be a key backer for Chromacity’s next stage of growth”.
Imani added: “The continued demand for highly efficient lasers, at lower price points, provides ideal opportunities for Chromacity’s future growth.
“Augmenting our design to manufacture infrastructure will become increasingly more important as we develop a new generation of plug and play lasers on a much more accelerated scale.
“We’ve now got the right infrastructure in place to take that next step. We have one of the most affordable and reliable ultrafast laser technologies available, a clear commercial strategy and we are perfectly positioned in the market to accelerate our growth.”
The firm has a particular focus on growing its footprint in China and Japan.