Lion Herald's Exclusive UK Tech Week Roundup - What You Missed This Week

Lion Herald Newsletter | Issue #25 - Saturday / November 18, 2023 | Lincoln, UK

November 18, 2023

Happy Weekend!

It was a week of breakthroughs as innovative companies across various industries secured significant funding and made strides in their respective fields.

ViaNautis Bio, formerly known as SomaServe, emerged victorious, raising an impressive £20 million in a Series A funding round led by global investors such as 4BIO Capital, BGF, and UCB Ventures. The genetic nanomedicine company, born out of UCL in 2018, specializes in gene therapy advancements using its groundbreaking polyNaut® technology. This infusion of funds is set to propel ViaNautis into a new phase of accelerated product development, team expansion, and the establishment of cutting-edge laboratory facilities.

Over in Scotland, Mocean Energy, a pioneering force in wave energy, rode the financial wave with a substantial boost of £2.2 million in new equity and a £500,000 grant. Supported by investors like Equity Gap and Scottish Enterprise, Mocean Energy is on a mission to revolutionize sustainable energy by commercializing its innovative wave energy converters. The funding not only solidifies their position in the green energy industry but also underscores Scotland's emergence as a competitive hub in this transformative field.

Meanwhile, London-based Fnality International, a fintech startup, secured an impressive £77.7 million in Series B funding led by financial heavyweights Goldman Sachs and BNP Paribas. With a focus on simplifying cross-currency payments through tokenized versions of currencies backed by central bank funds, Fnality is poised to reshape the landscape of global liquidity management. The funds will be instrumental in advancing their blockchain-based technology for a 24/7 payment rail.

In Belfast, the wireless sensor company Sensoteq celebrated a successful funding round of £3.1 million led by Maven Capital Partners. Founded in 2016, Sensoteq specializes in temperature and vibration sensors for industrial machinery, boasting a world-class team with 50 years of combined expertise. The funds will fuel international expansion, team growth, new product development, and enhanced customer support.

The crypto industry witnessed resilience and investor confidence as Blockchain.com, a leading UK-based crypto exchange and wallet provider, defied market challenges to secure a substantial $110 million in Series E funding led by Kingsway Capital. This strategic move positions Blockchain.com for continued influence in the evolving cryptocurrency landscape.

On the technology front, Belfast secured a significant boost of £3.8 million in wireless innovation funding, propelling the city into the top 10 designated 5G Innovation Regions in the UK. Spearheaded by Belfast City Council, this investment aims to foster economic growth and innovation through advanced wireless connectivity and digital technologies, revolutionizing key sectors and supporting local SMEs.

In the electric vehicle space, Arrival obtained a crucial £40.3 million ($50 million) bridge loan from existing investors, providing a 120-day window for the mobility startup to explore potential sales or alternative transactions. This loan marks a pivotal phase in Arrival's trajectory as it navigates the rapidly evolving electric vehicle landscape.

London-based fashion titan Urbanic made headlines by securing a groundbreaking $150 million in Series C funding. Backed by a consortium of global investors, including Mirabaud Lifestyle Impact & Innovation Fund and D1 Capital Partners, Urbanic aims to revolutionize the fashion industry through its tech-infused growth strategy, emphasizing innovation and sustainability on a global scale.

Lastly, fintech startup Rho Labs achieved a significant milestone by securing $2.2 million in pre-seed capital led by Speedinvest. Founded by Alex Ryvkin, former Chief Product Officer of Copper, Rho Labs aims to revolutionize derivatives trading through blockchain technology, promising innovation and strategic adaptation within the financial industry.

As the week concluded, these stories of success and innovation painted a vibrant picture of advancements across various sectors, showcasing the resilience and transformative potential of businesses in the UK's Tech landscape.

Fabrice Iranzi, Editor in Chief / Lion Herald

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Tech Headlines this Week

ViaNautis Bio, formerly SomaServe, has raised £20 million in a successful Series A funding round led by global investors including 4BIO Capital, BGF, and UCB Ventures. The nanomedicine company specializes in gene therapy advancements through its innovative polyNaut® technology, utilizing advanced polymers for precise drug delivery to target genetic molecules. The funds will expedite product development using polyNaut®, expand scientific and management teams, and establish state-of-the-art laboratory facilities. ViaNautis, spun out of UCL in 2018, focuses on addressing unmet clinical needs in central nervous system and lung diseases, with projects like VNS002 supported by the Cystic Fibrosis Foundation. The successful fundraise marks a pivotal moment in ViaNautis' journey, accelerating gene therapy advancements and creating substantial value for shareholders.

Mocean Energy, a Scottish wave energy pioneer, has garnered a significant financial boost with £2.2 million in new equity and a £500,000 grant, propelling the commercialization of their innovative wave energy converters. Focused on decarbonizing subsea operations and contributing to a sustainable energy future, the funding includes support from existing investors like Equity Gap and Scottish Enterprise, as well as new stakeholders like Norwegian impact investors Katapult Ocean and MOL PLUS. This infusion accelerates the development of Mocean Energy's small-scale Blue Star wave energy converter, emphasizing its role in the global wave energy revolution and showcasing Scotland's emergence as a competitive hub in the green energy industry.

Fnality International, a London-based fintech startup founded in 2019, has successfully raised £77.7 million in a Series B funding round led by Goldman Sachs and BNP Paribas. The company aims to simplify cross-currency payments by creating tokenized versions of currencies backed by central bank funds. Fnality is actively seeking regulatory approval for its sterling payment system, leveraging blockchain-based technology to establish a 24/7 payment rail. The funding will support the development of a 'global liquidity management ecosystem,' facilitating real-time settlement cycles and introducing innovations in wholesale payments. Notable investors in the round include Banco Santander, Barclays, CIBC, Lloyds Banking Group, Nasdaq Ventures, and UBS, bringing Fnality's total funding to £132.7 million. The company, initially a research project known as the Utility Settlement Coin (USC) Project, now boasts 17 major institutions as shareholders, emphasizing its commitment to revolutionizing financial markets through distributed ledger technology.

Sensoteq, a Belfast-based wireless sensor company, has secured a £3.1 million funding round led by Maven Capital Partners, with a significant contribution from TechStart Ventures. Specializing in temperature and vibration sensors for industrial machinery, Sensoteq's cloud software enables remote analysis, reducing the need for hazardous entry and minimizing machine downtime. The funds will drive international expansion, team growth, new product development, and enhanced customer support. Co-founded in 2016 by industry veterans Alan McCall and Idir Boudaoud, Sensoteq boasts a world-class team and 50 years of combined expertise. With a market-leading presence and clients spanning automotive, pharmaceutical, mining, renewable energies, and more, Sensoteq is at the forefront of wireless condition monitoring systems, offering innovative solutions for global industries.

In the midst of a crypto winter, Blockchain.com, a leading UK-based crypto exchange and wallet provider, has defied market challenges by successfully securing $110 million in Series E funding. Despite a significant adjustment in the company's valuation, dropping from $14 billion to below $7 billion, this strategic move reflects enduring investor confidence in the crypto industry. Led by Kingsway Capital and featuring participation from major players like Baillie Gifford, Lakestar, LSVP, and Coinbase Ventures, this funding round positions Blockchain.com for continued influence in the evolving cryptocurrency landscape. As key players Manny Stotz and Nicolas Brand join the board of directors, Blockchain.com's resilience and strategic positioning during the crypto winter underscore its significance in the market.

London-based Bloom, the AI coaching app, is making waves with its official launch in the UK and US following an £8 million seed investment. Established just a year ago, the app combines insights from industry leaders, behavioral science, and AI to deliver personalized coaching experiences. CEO Alistair Crane is on a mission to revolutionize the coaching industry, addressing issues with career growth and the perceived elitism of coaching. With over 10,000 coaching moments already achieved and endorsements from businesses like THG, Bloom anticipates significant growth, aiming to add 100,000 new customers in the upcoming year. Backed by investors including MMC Ventures and Octopus Ventures, Bloom is set to redefine professional development accessibility on a broader scale.

Belfast emerges as a trailblazer in the realm of digital innovation with a significant £3.8 million boost in wireless innovation funding. Spearheaded by Belfast City Council, this funding positions Belfast among the top 10 designated 5G Innovation Regions in the UK. The investment, part of a £36 million initiative across the UK, aims to propel economic growth and innovation by unlocking the potential of advanced wireless connectivity and digital technologies. From fostering local SMEs to revolutionizing key sectors such as creative industries and advanced manufacturing, Belfast's wireless innovation program is set to usher in a decade of transformative projects, showcasing the city's commitment to becoming a hub for cutting-edge technology.

Mobility startup Arrival has recently obtained a crucial £40.3 million ($50 million) bridge loan from existing investors as part of its strategic pursuit for a potential sale or alternative transaction. The company's financial report for the first half of the year reveals a significant increase in losses, totaling £125.5 million ($155.7 million). Arrival's proactive cost-cutting measures, including a substantial workforce reduction, aim to mitigate financial challenges. The bridge loan provides a 120-day window, until March 12 next year, for Arrival to secure a new buyer or explore strategic alternatives, offering a lifeline as the electric vehicle manufacturer navigates a pivotal phase in its trajectory.

London-based fashion titan, Urbanic, has made headlines with a groundbreaking $150 million in Series C funding, marking a pivotal moment in the industry's evolution. Backed by a consortium of global investors, including Mirabaud Lifestyle Impact & Innovation Fund and D1 Capital Partners, Urbanic is set to revolutionize fashion through its tech-infused growth strategy. The brand's proprietary AI and machine learning-driven engine will systematically generate designs, creatives, and content, amplifying supply chain efficiency. With a commitment to social responsibility, Urbanic's visionary approach extends beyond fashion, as seen through initiatives like Urbanic Oasis, aiming to plant one million trees in collaboration with Florestas Inteligentes. This funding surge propels Urbanic into an era where innovation meets sustainability, reshaping the future of fashion on a global scale.

Fintech startup Rho Labs has secured a substantial $2.2 million in pre-seed capital led by Speedinvest, signaling a significant milestone in their mission to revolutionize derivatives trading through blockchain technology. Founded by former Chief Product Officer of Copper, Alex Ryvkin, Rho Labs aims to create a blockchain-powered market for interest rate derivatives, transcending traditional boundaries and introducing a new era of efficiency and security. With key industry players like Dmitry Tokarev backing the vision, the startup is set to launch a private beta by year-end. Meanwhile, the London Stock Exchange grapples with a shifting landscape, with a notable downturn in trading volume prompting a strategic focus on data-driven insights and artificial intelligence for sustained growth, as outlined by CEO David Schwimmer. The juxtaposition of Rho Labs and LSE represents the evolving dynamics within the financial industry, promising a future shaped by innovation and strategic adaptation.

Thanks for joining us in this edition of the Lion Herald Newsletter. We hope you've found inspiration and valuable insights to fuel your tech and innovation journey. Remember, every idea counts, and together, we can turn them into real-world solutions. Stay curious, stay innovative, and stay tuned for more exciting stories in our next issue!

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