Spin Transfer turns to $22.8m investment

Spin Transfer Technologies (STT), a US-based data storage technology developer spun out from New York University, raised $22.8m today in a convertible bridge facility underwritten by commercialisation firm Allied Minds.

Other investors are expected to take down a portion of the investment in due course.

The investment is intended to take Spin Transfer Technologies through to the completion of its series B round, expected by the end of the first quarter of 2018.

STT, founded in 2007 with the help of Allied Minds, is working on temporary data memory technology, ST-MRam, which relies on magnetic storage rather than electric charge. The approach makes it possible to retain data even when a computer is powered off.

The spinout hopes its technology, developed by Prof Andrew Kent, will eventually serve to replace all the different types of storage required by computing devices and offer a universal memory that combines speed, low-power consumption, size and endurance.

STT will use the money to fund development of a commercial product, targeting a 2018 release when various companies are expected to launch similar technology. Firms working on cracking MRam technology include consumer electronics conglomerate Samsung and semiconductor company Everspin.

STT previously raised $70m in a funding round in 2014 led by Woodford Investment Management, with participation from SandAire and Invesco Asset Management.

In 2012, Allied Minds and Invesco co-led a $36m series A round.

Jill Smith, CEO of Allied Minds, said: “Given our conviction in the value potential of STT’s technologies and capabilities to deliver on this potential, underscored by positive feedback from multiple strategics across the MRam industry, we are pleased to underwrite the convertible bridge financing.

“The bridge financing provides runway for STT to complete critical development milestones and its planned series B financing with strategic investors.”