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Praetura Ventures and NPIF II announce £1.4m investment into northern tech and life sciences startups following inaugural PraeSeed cohort investing programme

Press release 09 December 2024

Seven startups from the North of England have become the first businesses to receive a share of £1.4m in funding from PraeSeed, a six-week cohort-based investment programme for early-stage businesses launched by Praetura Ventures and the Northern Powerhouse Investment Fund II.

Jessica Jackson, investment manager at Praetura Ventures

In total seven businesses have secured investment from PraeSeed, an initiative founded by the Manchester-based VC Praetura Ventures and funded by NPIF II – Praetura Equity Finance, which is managed by Praetura as part of the Northern Powerhouse Investment Fund II.

Launched in May, PraeSeed’s mission is to identify startup and early-stage investment opportunities for NPIF II, while providing founders at the pre-seed stage with new opportunities for additional funding and support with investor readiness.

For its inaugural year, PraeSeed hosted 12 businesses from various sectors and regions, with each invited to take part in workshops and presentations on all aspects of scaling a business, including creating a go-to-market strategy, navigating financial modelling and tackling fundraising. As well as Praetura’s investment and portfolio teams, the sessions were hosted by later-stage founders and experts from the business landscape. Of the 12 startups that took part in the programme, seven are now receiving £200k worth of funding each to support their scaling plans.

Among the seven companies is Lancaster University spinout CCI Photonics, which is developing a point-of-care test (InfectiScanTM) to help clinicians accurately detect infection types in patients, so the best antibiotic can be prescribed, reducing antimicrobial resistance.

PraeSeed is also backing Robotiz3d, a SciTech Daresbury-based University of Liverpool spinout, which has developed a suite of products to detect and repair cracks and potholes, including two autonomous vehicles and a specialised camera system.

Two businesses from Manchester have also received investment to aid their growth. They are North AI, which helps global media and entertainment companies make smarter commissioning and licensing decisions using AI, and Aquaint, which has created a user-friendly workflow and compliance app for staff at hospitality and food services companies to improve communication across everything from allergens to task management.

Joining these businesses are ScrubMarine of Whitehaven in Cumbria, which is developing a submersible remotely operated vehicle (SROV) to clean marine vessels affected by a build-up of unwanted organisms (biofouling), such as algae and barnacles, and BidScript, a Warrington-based startup that has created machine learning and artificial intelligence powered software to transform the bid management process for organisations going through resource intensive tendering processes.

The final business to receive funding from PraeSeed is WAC, a B2C app for hourly workers to record and track their hours to ensure they are paid accurately, with functionality that enables staff to raise discrepancies to be resolved by employers.

In addition, the final cohort also features a diverse founder in every business, with 29% of companies founded by a female founder and 86% of the companies founded or co-founded by a founder with a BAME background.

Jessica Jackson, investment manager at Praetura Ventures and PraeSeed lead, said: 

We were inundated with applications for our inaugural PraeSeed cohort, with 200 businesses applying to take part, highlighting that the north is alive with innovation. Our intention was always to invest in a limited number of companies that truly stood out, and that’s where we have arrived at with these seven businesses, whose founders displayed tenacity, a willingness to learn and, above all, the talent required to scale a successful business. Equally, we’re incredibly proud of the level of diversity displayed across our final seven companies, with entrepreneurs from diverse backgrounds and female founders receiving the funding needed to hit new milestones and enter a new chapter of growth.

Simon Cunnington, director at British Business Bank, said: 

From AI to underwater technology, this cohort of companies securing valuable equity finance truly exemplifies the entrepreneurial spirit and technological prowess of the North of England. New innovations that are solving real world issues is what helps create a thriving economy, and we are excited for the Fund to play a crucial role in the early stages of these businesses’ growth journeys.

The £660m Northern Powerhouse Investment Fund II (NPIFII), which has funded PraeSeed through NPIF II – Praetura Equity Finance, covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

The next instalment of PraeSeed will launch again in March next year and businesses wishing to take part our encouraged to follow Praetura Ventures on LinkedIn or X for more details.

CCI Photonics and BidScript were advised by Darren Ormsby, partner at DWF Law LLP; Robotiz3d was advised by Daniel Hall, partner, and Jonathan Edwards, corporate associate, at Eversheds Sutherland; North AI was advised by Emma Norman-Jones, corporate solicitor at Brabners; Aquaint and ScrubMarine were advised by Kelly Clarke, legal director, and Jennifer Murphy, senior associate, both in the corporate team at TLT LLP; WAC was advised by Carly Gulliver, partner, and Gavin Smith, managing associate, at Addleshaw Goddard.

A team from Irwin Mitchell LLP, led by partner Adam Kaucher, acted on behalf of Praetura Ventures for all the above deals and supported the legal framework for the programme.

Further Information

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Notes to editors

About PraeSeed

PraeSeed is an early-stage investment programme that focuses on deploying equity investment into early-stage businesses in the North to help fill a known funding gap in “preseed” or pre-revenue businesses. Launched in March 2024, with the first-ever cohort starting in June that year, PraeSeed initially welcomed 12 businesses for a series of workshops, mentoring sessions and support from Praetura Ventures’ investment team, external experts and existing founders, with the aim of improving investor readiness among the businesses involved. The programme is funded by NPIF II – Equity North West, which is managed by Praetura as part of the Northern Powerhouse Investment Fund II, and aims to invest over £6m into 35 start-up businesses over the next five years. Find out more here - praeturaventures.com/praeseed.

About Praetura Ventures

Praetura Ventures is a Manchester-based venture capital firm which invests in early-stage, high-growth businesses across the UK, with a particular focus on supporting entrepreneurs across the North of England.          

Praetura Ventures is committed to adding value post-investment and providing the ‘more than money’ support that businesses need to grow, including additional expertise, resources, networks and guidance, to its investee companies.        

Since 2019, Praetura Ventures has backed 45 companies, including North West headquartered businesses Culture Shift, AccessPay and Peak. The business has now grown to over £260m AUM and recently won the Northern Powerhouse Investment Fund II mandate for the £100m fund dedicated to equity in the North West of England.   
     
Learn more at praeturaventures.com.      

About the Northern Powerhouse Investment Fund II

  • Operated by the British Business Bank, the Northern Powerhouse Investment Fund II (NPIF II) provides a mix of debt and equity funding.  NPIF II will offer a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support the North’s smaller businesses at all stages of their development.
  • The funds in which the NPIF II invests are open to businesses with material operations, or planning to open material operations, in: Cheshire, Cumbria, Greater Manchester, Lancashire, Merseyside, City of Kingston upon Hull, East Riding of Yorkshire, North Yorkshire, South Yorkshire, West Yorkshire, Hartlepool and Stockton-on-Tees, South Teesside, Darlington, Durham, Northumberland, Tyneside, Sunderland.

Smaller Loans from £25,000 to £100,000 – GC Business Finance & River Capital (North West), Business Enterprise Fund (BEF) (Yorkshire and Humber) and NEL Fund Managers (North East)

Business Loans from £100,000 to £2m – FW Capital (North West), Mercia (Yorkshire and Humber) and NEL Fund Managers (North East)

Equity Finance up to £5m – Prateura Ventures (North West), Mercia (Yorkshire and Humber), and Maven Capital Partners (North East) 

Applications for funding are made directly to the relevant fund managers who can be contacted via the NPIF II webpages northernpowerhouseinvestment fund.co.uk.

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