University of Manchester spin-out Arvia Technology, which makes water cleaning products, has attracted another £250,000 from private equity backer MTI Partners.
The investment kicks off a second round of funding which is expected to raise £750,000.
Arvia, which has offices in Manchester and Liverpool, has developed Nyex, a patented renewable material, which destroys organic pollutants by applying a low-power electric current.
The new money comes from the UMIP Premier Fund (UPF), which is managed by MTI from its office in Manchester.
MTI said the investment was “recognition of a number of impressive user trials of Arvia’s water treatment technology, and ever increasing commercial interest from a broad range of markets”.
Arvia’s technology is cost effective, requires little maintenance and produces no secondary solid or liquid waste which needs to be disposed of.
The company was named among the Global Cleantech 100 last September and won the Institution of Engineering and Technology’s North West Innovation Award last July. Its customers include water utilities and groundwater remediation companies and it is getting inquiries from overseas markets.
MTI investment manager Dr Mark Rahn said: “Arvia Technology has made significant progress towards commercialisation since our first investment in September 2008. Its water treatment technology has matured from being impressive in the laboratory, to a proven market changing, and most importantly, commercially viable proposition.
“I have no doubt that Arvia will achieve accelerated commercial success in the coming months.”
MTI said it had made three energy and environmental sector investments in the North West in the past 12 months and was looking to invest in other clean-tech companies across the region.
Arvia’s chief executive, Martin Keighley, said: “There is still a lot of work to do, but this investment comes at a crucial time as we step up taking this innovative and highly disruptive technology to market.”
“Global interest in Arvia has grown rapidly in recent months, with enquiries coming from the likes of the United States, France and Israel, and the big challenge is to now deliver on opportunities from markets as broad as groundwater remediation, nuclear decommissioning and pulp & paper.”