The manufacturer of flexible integrated circuits is planning a limited second close for key investors, of which £20m in additional investment is already allocated.
M&G’s Catalyst and UK Infrastructure Bank co-led the funding round with participation from new investors including Northern Gritstone, Latitude and MVolution Partners, and existing investors including British Patient Capital, Cambridge Innovation Capital and Prosperity7 Ventures.
In a statement, David Moore, Pragmatic’s CEO said: “This successful Series D round is a clear testament to the massive opportunity for our innovative technology to enable item-level intelligence in virtually any object on the planet.”
Pragmatic has developed FlexICs (flexible integrated circuits) described by the company as a low-cost, flexible alternative to silicon-based microchips.
At around 30 microns thick, their flexibility allows them to be used on curved or domed surfaces. They are said to provide an alternative to ‘legacy’ chips found in numerous applications, from consumer electronics to medical devices, and their manufacture uses around 100 times less energy and less water than silicon microchips, as well as fewer harmful chemicals. The company also provides Fab-as-a-Service (FaaS).
Cambridge-headquartered Pragmatic said the investment will accelerate its expansion plans in the UK to meet the growing demand for its technology. This includes building third and fourth fabrication lines at its Pragmatic Park facility in Durham. Over the next five years, Pragmatic anticipates building at least eight manufacturing lines in the UK and creating hundreds of jobs.
Erik Langaker, Pragmatic’s chairman, said: “In a challenging investment environment, this capital raise is a fantastic recognition of the strength of the company and the value of its unique technology. With this funding, Pragmatic will be able to scale its foundry capacity to produce billions of chips to meet the demand from global, blue-chip organisations that are developing innovative new use cases only possible because of Pragmatic’s flexible integrated circuits.”