Magnomatics gears up with $4m

University of Sheffield (UoS) spin-out Magnomatics has successfully raised £2.5m ($4m) from university investment firm Fusion IP, UoS and Yorkshire Finance.

The UK-based firm will receive £1.06m ($1.7m) from both Fusion IP, which provides backing for spin-outs from UoS and Cardiff University, and Yorkshire Finance, a Joint European Resources for Micro to medium Enterprises initiative. The UoS will provide a further £366k ($587k).

The first tranche of £2.25m ($3.6m) has already been invested, whilst the second tranche of £246k ($394k) will be made available once certain milestones are achieved.

Sheffield-based Magnomatics produces contactless electric motors and magnetic gears, and plans to invest the additional funds into the further development of the magnetic gears for hybrid and electric vehicles. Set up in 2006, the spin-out last year signed contracts with Ford Motors and construction plant manufacturer Caterpillar to develop its technology to power hybrid vehicles.

Chief executive officer of Magnomatics, Chris Kirby, said: “Magnomatics is delighted to now have the funding it requires to expand the business and take its fully proven magnetic transmissions and ultra-efficient motors through to mature product offerings.”

With the latest investment, Fusion IP, subsidiary of university venture firm IP Group, now holds a 31% share in the firm.

David Baynes, CEO of Fusion, said: “This is a major funding for Magnomatics that will enable them to develop their novel magnetic transmissions and compact, ultra-efficient motors for key vehicle markets. Magnomatics has made major technological advances over the last two years and has an impressive list of development contracts with many of the world’s leading manufacturers. We look forward to working with the management team and new investors, as Magnomatics brings these novel systems to market.”