Seed fund puts £300k into Bluetooth and Wi-Fi

The Mercia Technology Seed Fund (MTSF) and the Advantage Early Growth Fund (AEGF) have just completed an initial investment in LM Technologies Limited, a Birmingham, UK, based company founded to develop innovative wireless products including the world’s smallest Bluetooth adapter.

It already has a range of what MTSF’s press release says are cutting edge data connectivity products utilising Bluetooth, Wi-Fi and mobile phone technology. The investment from Mercia Fund and AEGF will enable the company to invest in its technical capability and accelerate the development of new products based on the latest wireless technology.

As part of the investment package, Warren Mason, who previously purchased and turned around the fortunes of Total Home Entertainment before selling that company, will join as chairman.

Tim Hazell of Mercia Fund, commented, “We were excited by both the position of LM Technologies in one of the fastest growing technology sectors and by the ability and enthusiasm of Mike and Lee [editor’s note: the founders, Mike Sims and Lee Parry] to build on their success to date.”

Kevin Caley of AEGF noted, “This is another example of how funding to support innovative businesses continues to remain available in the West Midlands for businesses with strong potential despite concerns over the economy.”

Mike Sims, managing director of LM Technologies, added, “We are delighted to have received support from two venture capitalists, despite the current financial conditions. Not only will the funding provided enable us to exploit more of the opportunities for our technology but the guidance from an experienced entrepreneur such as Warren Mason will be invaluable as we grow the business.”

The Mercia Technology Seed Fund is a £12.8 million seed fund which invests in opportunities that are post proof of concept, often pre-revenue, but with demonstrable commercial interest in the technology under development. The fund makes investments typically between £50,000 and £250,000 with the potential to invest up to £750,000.

The £8m Advantage Early Growth Fund is a region-wide, venture capital co-investment fund set up with UK Government capital to assist early stage, West Midlands based, businesses with growth potential. It matches risk capital provided by business angels or other private sector investors on the same terms.