New single company EIS deals

Altered Carbon EIS - Pioneering, low-cost e-nose technology backed by specialist institutional investors initially targeting food industry to reduce waste

One-third of all food produced globally by weight is lost or wasted between farm and fork. This amounts to over a billion tons of food and $940 billion in economic losses a year. 

It is estimated that by 2030 reducing food waste could represent a $155-405 billion economic opportunity. 

Bristol-based startup Altered Carbon Limited (“Altered Carbon” or the “Company”) is developing technology that aims to help cut food waste. Its electronic nose, or e-nose, technology – think of it as the digital version of a dog’s nose – mimics the sensitivity of a dog’s nose and combines it with the repeatability and accuracy of a digital sensor. 

Using digital scent sensors, Altered Carbon’s e-nose technology can sense chemical compounds effectively, take a scent or gas reading and then interpret it. For instance, it was able to help Branston – one of the UK’s largest potato distributors – spot signs of potato blight up to 10 days earlier and aims to reduce losses by up to 20%, a potential saving of c.£3 million a year. 

Beyond food production and storage, e-nose technology could be applied to multiple industries, from environmental and medical to military and defence. 

Now, Altered Carbon is seeking to raise £1 million under EIS to support its progress, accelerate sales and convert existing pilot projects into full-scale contracts. £400k has already been invested or committed. Existing institutional investor Britbots, which specialises in productivity-enhancing automation technologies as well as existing private investors have already invested. New investor Cambridge Agritech is expected to invest, subject to due diligence and contract. Cambridge Agritech is a syndicate of mainly private investors who are owners or directors of some of the largest food and agricultural businesses in the UK. They invest in innovative SMEs in the agricultural sector in Europe and the US. 

Travelnest EIS – co-investment with prominent investors (including Skype early backers Mangrove Capital Partners): marketing platform helping holiday-let owners boost bookings and earnings

Tourists are increasingly choosing holiday lets over hotel stays. It’s a £64 billion global market and growing – yet, it’s estimated over half of holiday-home nights go unsold. One reason is owners don’t have the time or experience to promote their property and struggle to manage listings on multiple booking platforms.

Travelnest is active in 50+ markets worldwide. It has grown rapidly since the platform launched in 2018 and shown resilience through the pandemic. It generated £6.8 million in booked revenue in FY22 – 152% CAGR since FY18.

The company is backed by leading institutions, including Mangrove Capital Partners (an early backer of five unicorns, e.g. Skype) and Scottish National Investment Bank.

Ahead of a larger planned Series B round in 2025, Travelnest is launching a £5 million bridge round aiming to fund the business to profitability, forecast in 2025 – not guaranteed. Approximately half the fundraising target is being met by existing institutional investors – Wealth Club investors can invest alongside (applications processed on a first-come, first-served basis). The minimum investment is £10,075.20 and you can apply online.

Based on the company’s forecasts, the target return in FY28 for investors in this round is 14.6x (IRR 53%) before EIS tax relief – high risk and not guaranteed.

Filament EIS – offer closed on 2 May 2023

Proven, profitable, high-growth SaaS company Filament has created a data platform that uses machine learning to help investment teams originate deals and track market signals in a fraction of the time. The platform is used by major European investment firms with total assets under management of c.£120bn. Set up in 2016, Filament has been profitable since 2018 and reinvested its profits to fund growth and platform development. The offer was the first and potentially only opportunity for external investors to invest – and was only available through Wealth Club.

Glyconics EIS – offer closed on 28 April 2023

A co-investment alongside Deepbridge Capital and sector specialists in MedTech that could make early diabetes screening faster and more accurate – saving healthcare providers £millions. Glyconics has developed a patented point-of-care device that uses Infrared Spectroscopy (IRS) to detect diabetes highly accurately, more quickly than conventional methods (10 seconds versus potentially several weeks) and up to 90% more cheaply.

The Bunch EIS – offer closed on 28 April 2023

Backed by Haatch Ventures and SFC Capital, The Bunch has developed an innovative bills management platform which secures competitive rates from various suppliers, consolidates all the bills into a single monthly payment and provides excellent customer service. Having scaled in the student market, the company is now looking to expand first in the private rental market, primarily through B2B partnerships, then in the wider homeowner market.

Thrive Therapeutic Software EIS – offer closed on 28 April 2023

Thrive Therapeutic Software has created a clinically approved smartphone application designed to improve mental health in the workplace. Thrive is registered as a Class I medical device by MHRA, and ISO-accredited. It currently reports £2.5 million annual recurring revenue from clients including the NHS, Aviva, AXA, Santander and Serco.