Taking advice on trust

Two years ago, start-up company

was what its business development director called a 'technology project'. Today it is a thriving business. The company, which developed a novel engine and compressor design with the potential to deliver significant energy-efficiency improvements and therefore lower carbon emissions, has gone from strength to strength since it took advantage of the support provided by the Carbon Trust's incubator programme.

This support included business planning and revenue modelling as well as a detailed market assessment, all of which were essential to get Lontra 'investment-ready'. Since then, Imperial Innovations and NPI Ventures, a subsidiary of Japanese investment bank Nikki Cordial, have co-invested in Lontra, bringing the seed funding round to £400,000 and Lontra is looking to begin another round of fundraising this summer.

Launched in April 2004, the Carbon Trust incubator programme provides essential commercialisation support such as market analysis, business planning and mentoring for low-carbon technology start-ups hoping to attract investor funding. Since its inception, it has supported more than forty. Twenty graduates have already raised private investment worth more than £22m, and three have listed on AIM; three others have negotiated licence agreements.