Cash Boost For Cutting Edge Turbo Charger Company

Aeristech image for press21 May 2013

Funding has been secured for a Warwickshire company which has developed novel fuel efficient and low cost electric turbocharger technology.

The investment, through leading venture capital specialists Midven, will help Aeristech, based in Kenilworth, to further develop its technology and look to win new commercial projects.

The progress made by Aeristech from a commercial perspective was a factor in the latest investment round.  Midven originally invested through its Early Advantage fund in 2010, with the latest investment coming through Midven’s Exceed Fund. The Early Advantage fund, other existing shareholders and some new investors also participated in this round of funding.

The initial finance helped Aeristech convert technology into a physical prototype engine, as well as recruiting additional engineers and filing patents. Aeristech has recently entered into a project with a large Tier1 automotive supplier to develop a new electrical system, and the latest funds will help them complete the work.

The technology developed by the company enables car manufacturers to downsize engines without reducing performance, in turn reducing emissions through lower weight and fuel usage.

Aeristech Ltd was founded in 2006 as an engineering R&D consultancy firm to develop hybrid turbo technology, a concept developed and created by the company’s founder, Bryn Richards. The company has revolutionised the technology of turbochargers by solving the previous problem of turbo-lag, the pause between depressing the accelerator and the turbocharger kicking in, thus allowing manufacturers to downsize engines without impacting performance.

Mr Richards said: “The levels of increases in fuel pricing have been such that it is a major concern when taken as part of the cost of owning cars and commercial vehicles. This, coupled with emission levels, means that we can have a significant effect by developing technology that enables engine downsizing and therefore helps deal with these problems. We are working with some big names and this funding comes at a time when we are looking to move the business on to the next level.”

The technology is particularly attractive to car and truck manufacturers, who for competitive, environmental and legislative reasons, need to increase the efficiency of their engines. Aeristech won the Energy Institute’s Technology Innovation Award for 2012 for its full electric turbocharger.

Ian Fairclough, investment manager for the Exceed Fund, said the company had proven itself to be a truly innovative concern and was part of the West Midlands continuing to maintain its pioneering role in the automotive field.

“Aeristech is at a stage where, having developed the technology through several commercial projects, it is well on the way to becoming a revenue generating concern. The area of turbo technology is one of enormous potential, and it’s great to see a company from this region working with some big players which enhances the West Midlands as the capital of the UK automotive sector.”

Midven works closely with the management teams in its portfolio companies to ensure their growth strategy is aligned with achieving high value returns.


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