A Canadian telecoms firm plans to move its UK operations to the Midlands after receiving a funding boost from a group of local angel investors.
Genesis Technical Systems has perfected a new technology in the shape of hi-tech DSL Rings which dramatically increase the speed of broadband internet using existing copper wire networks rather than the need to replace them with costly fibre optic cables.
The firm has secured £120,000 from Minerva, the University of Warwick Science Park’s business angel network investor group and now plans to move its UK operation to the University of Warwick Science Park’s Venture Centre.
After DSL Rings are fitted to existing copper cables, data can be transmitted along them at up to 400 Mb/s even over long distances.
This means telecommunications companies can offer top-speed internet access at a fraction of the cost it would take to replace miles of copper wire with fibre optic cables.
Minerva’s investment will be used to further product developments and continue trials with European telecommunications companies.
Genesis is already in talks with two major firms in the UK as the telecommunications industry looks to meet the challenges of supplying every household in the UK with fast, reliable internet access.
Genesis UK chairman Ian Mackenzie said: “Genesis is thrilled to receive support and investment from the Minerva business angel network.
“Following recent successful demonstrations of Genesis’ DSL Rings capabilities with two incumbent European telecoms providers, we want to accelerate product development and give web users the option for super-fast broadband in rural, and urban, areas within the next couple of years.”
Minerva was set up 15 years ago to assist small and medium size businesses with high growth potential to access the funding they need to fulfil their promise – with particular emphasis on raising private equity.
In the past 12 months the Minerva investor group has grown to include 42 members and has helped to secure investment of over £2.7 million for small to medium sized companies – £400,000 of which was directly contributed by its members.
Tim Powell, who took over as head of the Minerva business angel network in 2009, said: “We are delighted to have been able to support Genesis Technical Systems, they have a fantastic product and we have no doubt it will prove to be a big success.
“But the cash investment is only a small part of the story.
“The company will also be able to call upon the expertise and business knowledge of some of the leading business minds in the country – and that is an investment you cannot put a value on.
“We will follow the progress of Genesis closely, who are just one of four companies who have successfully pitched their business proposal to our syndicate investor group that meet at the Science Park every month to consider high-growth investment opportunities”