Leading Scottish radio technology company secures £740k in ‘oversubscribed’ funding round
A leading radio technology company has completed an ‘oversubscribed’ fundraising round and is expected to benefit from the use of UK technology in the nation’s mass 5G rollout.
A funding round is ‘oversubscribed’ when the company has obtained funding commitments from investors that, in total, amount to more money than the company needs or intends to raise.
Sofant Technologies, which designs 5G and satellite ‘smart antennas’, has attracted £740,000 from investors led by venture capital specialists EMV Capital.
The fundraiser comes after the Edinburgh-based company raised £2.3m in last year’s pre-series ‘A’ round, which is the earliest stage of funding a new company.
Participation in both rounds included key existing investors, including the Scottish Investment Bank and Kelvin Capital.
Reflecting strong developments in the last 12 months, the funding round includes a price per share uplift of 40% in under a year since its last investment round in July 2020.
The satellite communications antenna developer plans to use the new funding to expand its commercial team as the company accelerates its system integration with satellite network operators and other final users.
Sofant chief executive David Wither said: “This top-up investment is a vital part of the preparation for our series A funding round.
“Our engineering team has made significant progress on the development of our core technology platform. We have also built an ecosystem of corporate partners who will play key roles in the commercialisation of Sofant’s disruptive, low power antenna technology.”
Dr. Ilian Iliev, managing director of EMV Capital said: “Since our initial investment, we have seen the Sofant team make rapid progress in this strategically vital technology for the UK’s telecoms sector.
“In the aftermath of Covid-19, supply chain consolidation and strategic reliability has become a key priority for Western governments. Sofant is well-positioned to provide this homegrown, reliable partner in building safe, reliable and fast connectivity systems.”
Sofant’s “highly efficient patented radio technology platform provides the UK and Europe with a homegrown, industry-leading technology solution to several major challenges facing wireless communication systems.”
In satellite communications and 5G, its technology reduces the power consumption of electronically scanned antenna arrays by more than 70%, with lower production and maintenance costs compared to other emerging solutions.
Since the 2020 investment round, Sofant has developed growing industry recognition, with support from global manufacturers and application-specific development partners. Sofant has also hired a new CFO to support the scale-up of commercial activities within the business.
Amongst Sofant’s development programmes are prototype antenna arrays funded by the European Space Agency and the European Commission.
EMV Capital is a venture capital investor focused on B2B companies in the healthcare, sustainability and industrials sectors. EMVC’s investments in UK, Israel and the US cover a range of technologies including robotics and AI, machine learning, materials science, IoT, advanced engineering, power electronics and health-tech.