- Midlands Engine Investment Fund II announces first major equity deal
- Aircraft robotics pioneer True Position Robotics raises £1 million to support business expansion
The British Business Bank has announced the first deal from the Midlands Engine Investment Fund II, with a £1 million equity investment in True Position Robotics, facilitated by the appointed fund manager for the East and South East Midlands, Mercia Ventures.
True Position Robotics (TPR) is a Nottingham-based company whose industrial robots could revolutionise aircraft production and slash the cost of new planes. The investment comes as demand for new planes has surged due to a rise in passenger numbers and a drive by airlines to replace ageing fleets with more modern, fuel-efficient craft.
TPR, founded in 2018 by Roger Holden, has pioneered a way to automate the assembly process for aircraft using low-cost ‘off the shelf’ industrial robots adapted with its own software and hardware. The company is already working with leading industry names including BAE, which has adopted the technology as part of its Factory of the Future programme.
Currently, aircraft assembly is largely a manual process. Parts must be lined up, holes positioned precisely and carefully drilled. TPR’s robots automate the entire drilling process and the subsequent inspection. Its unique optical tracking technology and clamp system keeps the drill in place for 100% accuracy.
This pioneering approach to aircraft assembly enables planes to be built in a fraction of the time and reduces the amount of material required, resulting in lighter craft with better fuel efficiency. The use of lightweight standard robots also means that TPR’s systems are around a tenth of the cost of a traditional automation line and use far less energy.
The equity investment received through the Midlands Engine Investment Fund II and managed by Mercia Ventures will enable the business to scale up operations and continue its research and development. Shakespeare Martineau in Nottingham provided legal advice to Mercia Ventures on the deal.
Roger Holden, CEO, True Position Robotics, said: “Unlike vehicle assembly, where processes are repeatable, with aircraft the need for lightweight components and high precision means that no two operations are the same. For this reason automation has so far proved too difficult or too costly. Our robot guidance systems overcome these challenges. The investment from the Midlands Engine Investment Fund II will enable us to consolidate our position and start work on the next generation of products to ensure we maintain our position as thought leaders in the industry.”
The £400 million Midlands Engine Investment Fund II covers the entire Midlands region and provides debt finance from £25,000 to £2 million and equity investment up to £5 million to help a range of small and medium sized businesses to start up, scale up or stay ahead.
Ken Cooper, Managing Director, Venture Solutions, British Business Bank said: “The Midlands Engine Investment Fund II’s investment into True Position Robotics is an excellent example of the way the fund can provide transformative funding for companies at the forefront of developing pioneering technology. The investment marks a significant first milestone for the fund which has been designed to support a wide range of innovative local businesses. We’re delighted this funding will help Roger and team realise their business’ ambitious growth plans.”
Hannah Tapsell Chapman of Mercia Ventures added: “True Position Robotics’ technology addresses some of the key challenges for UK manufacturers – how to increase productivity, reduce cost and energy use and move towards net zero. Despite being an early-stage business, it has already gained real traction and attracted major clients. The funding will help Roger and the team to scale up their operation and pursue their mission to revolutionise aircraft manufacturing.”
About the Midlands Engine Investment Fund II
- Operated by the British Business Bank, the £400 million Midlands Engine Investment Fund II (MEIF II) provides a mix of debt and equity funding. MEIF II offers a range of commercial finance options with small 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 smaller businesses in the Midlands at all stages of their development.
- The funds in which the MEIF II invests are open to businesses with material operations, or planning to open material operations, in the West and East and South East Midlands.
- Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).
About Mercia Ventures
- Mercia Ventures is a proactive venture capital investor focused on being the first-choice partner for growth. Mercia Ventures makes equity investments of up to £10million across all sectors, with specialisms in Software, Consumer, Healthcare and Deep Tech.
- Mercia Ventures is part of Mercia Asset Management PLC and sits alongside its wider private equity, debt and proprietary balance sheet capital operations. The Group has 11 offices in the UK and Mercia Ventures’ national footprint and 48 strong investment team draws on their experiences as founders, PhD scientists, software engineers, corporate financiers and management consultants to help its partner companies successfully achieve their ambitions.
- www.mercia.co.uk
About True Position Robotics
- True Position Robotics (TPR) is an independent UK SME formed in 2018 by Chartered Engineer Roger Holden. With over 40 years’ experience, TPR specialise in high accuracy robot metrology and End of Arm Tooling (EOAT) technology, focussed on aerospace and high value manufacturing.
- Based in Nottingham, TPR secured a £1.3m grant from Innovate UK and the Department for Business & Trade, Aerospace Technology Institute, to develop their robotic aircraft assembly systems in September 2020.
- www.tpr.solutions
