Nonlinear Group has raised £1.53m to assist its next phase of expansion in the field of diagnostics
Newcastle based life sciences software and diagnostics business
Nonlinear Group has announced that it has raised
£1.53m of new external funding to assist with the financing of the
next phase of its expansion in the field of diagnostics. This
comes off the back of some significant strategic developments the
business has secured in recent months.
The group consists of two companies, Nonlinear Dynamics and
Biosignatures. Nonlinear is a world leading, profitable, growing
business involved in the scientific field of proteomics. It
supplies most of the world’s leading research organisations and
pharmaceutical companies with software tools to aid research and
development into new treatments for disease.
Biosignatures is a younger business with a particular focus on
cancer diagnostics and also assisting companies to develop
companion diagnostics and personalised medicine products.
This latter area is a burgeoning alternative to the historical “one
size fits all” model of drug development which enables the
provision of drugs specific to the needs of individual patients or
patient groups. The molecular diagnostics products are all targeted
at areas of strong clinical need, initially prostate, renal and
bladder cancer. Biosignatures represents a major growth opportunity
for the Group.
Will Dracup who founded the business in 1989 and has been a
leading player in proteomics and related software for the last two
decades. Mr Dracup said “I am delighted with the latest
funding package Nonlinear Group has attracted as it enables the
business to continue to invest for very strong growth. The
intellectual property and products we have developed over the years
are very much matched to what clinicians and researchers need, and
this is driving strong demand for our products and services. We
have some very exciting strategic collaborations to deliver in the
short and medium term and bringing on board these new funds and
strong investors will help to guarantee success”.
Duncan Barrie the Group Finance Director said the Nonlinear
business has been profitable for many years and this investment
will help the Biosignatures business achieve its revenue and in
time, profitability goals.
The equity and mezzanine funding package was raised by Roland
Tate of Tiger Corporate Finance who introduced and acted for all
the investors in the syndicate. The largest group in the
syndicate was a set of experienced private angel investors one of
whom who will join the Nonlinear board. The private investors
were matched by Capital For Enterprise, led by Tim Mills and Paul
Fauset from their Sheffield office, who manage the
Government-backed £50m Angel CoFund which invests alongside angel
syndicates into SMEs with high growth potential. The fund aims
boost the quality and quantity of business angel investing in
England to support long-term, high quality jobs in growing
FW Capital, led by its Newcastle based investment team of Andrew
Coles and Rob Jones, which manages the £20 million North East
Growth Plus Fund, part of the Finance for Business North East Fund,
completed the £1.53million syndicate. Banking facilities
continued to be provided by Yorkshire Bank.
Mr Tate commented “I have known the directors for many years and
I am delighted to have delivered this funding round for the
business. Nonlinear has a very strong reputation due to the
quality of its proprietary product suite and has a ringing
endorsement from a wide range of major clinical research and pharma
companies who are keen to work with the business on new
opportunities. Nonlinear has a strong story to tell and sells
its products around the world to some of the leading players in its
Investment Executive, Rob Jones explained why
FW Capital was keen to invest: “Nonlinear is a profitable and
highly-regarded global leader with innovation at its heart.
It’s at the forefront of the sectors it operates in with products
that have the potential to diagnose certain medical conditions more
accurately. This investment will play an important role in
the company’s expansion and we wish the management team well.”
Newcastle based Square One Law provided lead legal advice to the
syndicate whilst Dickinson Dees acted for Nonlinear.