Plans to scale up production, invest in R&D partnerships in automotive, aerospace & defense industries.
OTTAWA, ONTARIO: Equispheres, a materials science innovator based in Ottawa, Canada, today announced they have raised Series A investment and a new round of funding totalling $30 Million (CDN), at an undisclosed valuation. This round of funding was led by advanced materials and sustainable technology investor, HG Ventures, with participation from Sustainable Development Technology Canada (SDTC), BDC, Canada’s bank for entrepreneurs, and other undisclosed contributors.
“We are extremely excited to have HG Ventures as a partner,” says Kevin Nicholds, President and CEO of Equispheres, “their extraordinary combination of research capability and venture capital experience made them an ideal partner to understand both the technical and market potential of our product across the transportation industry. We are also grateful to have the support of the Canadian government, enabling us to leverage investor financing to achieve our objective of providing a high-quality product at volume levels the marketplace demands.”
The round was comprised of $10 million in equity investment from HG Ventures, an $8 million-dollar grant from SDTC, $5 million-dollar subordinated financing from BDC (previously announced and now released under conditions met with this raise) and an additional $7 million in undisclosed funding. Equispheres had previously announced the $8 million grant contribution from SDTC in a release on January 15th, 2020. Equispheres was one of 14 Canadian cleantech companies that received support from SDTC in a strategic investment to “position Canada as a global leader in innovation” and create jobs.
Funding will largely be used to scale up production capacity and facilitate R&D efforts with strategic industry partners.
This new round of funding will largely be used to scale up production capacity and facilitate R&D efforts with strategic industry partners. Specifically, the areas the company will focus on are:
- Improve reactors for higher volume and lower cost production
- Accelerate research and development projects with strategic partners in the automotive, aviation, space and defense industries
- Hire and develop talent, creating high quality jobs
- Develop application support services for the automotive, aviation, space and defense industries to facilitate advanced manufacturing opportunities made possible with the materials Equispheres has developed
Within the last year Equispheres has released two major reports on the results of testing on its unique metal powders. One outlined how their powder out-performed in additive manufacturing aerospace-ready quality tests, and another revealed they had been successful in developing an aluminum alloy powder suitable for binder jet printing, a high-demand combination that was previously unfeasible. With the new funding, further tests underway, and exciting new partnerships, more significant developments are expected on the horizon.
About HG Ventures:
HG Ventures is the corporate venture arm of The Heritage Group. HG Ventures supports innovation and growth across The Heritage Group by investing and partnering with private companies developing new technologies and approaches in both our core and adjacent markets. We leverage the world class expertise of The Heritage Group operating companies and research center to offer a unique value proposition to our portfolio company partners.
About Sustainable Development Technology Canada:
Sustainable Development Technology Canada (SDTC) is a foundation created by the Government of Canada to advance clean technology innovation in Canada by funding and supporting small and medium-sized enterprises developing and demonstrating clean technology solutions.
About BDC:
BDC is the only bank devoted exclusively to entrepreneurs. It provides access to financing, both online and in-person, as well as advisory services to help Canadian businesses grow and succeed. Its investment arm, BDC Capital, offers a wide range of risk capital solutions. For 75 years and counting, BDC’s purpose has been to support entrepreneurs in all industries and all stages of growth. For more information and to consult more than 1,000 free tools, articles and entrepreneurs’ stories, visit bdc.ca.
Correction Notice: In an earlier version of this announcement, there was an error stating the investment was a “Series B” funding round when it should have read “Series A.” The error has since been corrected to reflect the correct funding round series.
