Cleantech energy company eleXsys Energy raises £640,000 through AIN

eleXsysEnergy has raised £640,000 through Angel Investment Network, the world’s largest online angel investment platform. eleXsys Energy has developed a unique, international award-winning, enabling technology that will drive the transition of global energy grids to a clean energy future. The eleXsys® technology enables large commercial and industrial rooftops to become grid-connected, solar power plants. eleXsys® is the critical enabling technology being installed to build the IKEA eleXsys Microgrid at IKEA Adelaide, which will become 100% powered by renewable generation by 2025.

The raise took four months and was part of a larger £5m funding raise, including a Series A round of  £3.55m, with the funds allowing the business to continue its investment as it rapidly grows its global reach. eleXsys Energy’s innovative technology unlocks the full potential of electricity networks to host multiple times more clean, distributed energy without expensive network infrastructure upgrades. By providing services that enable a two-way flow of electricity on grids, the platform supports the most efficient, low-cost means of delivering clean distributed solar or wind energy.

The company originated in Australia but has now reorganised and is headquartered in London. This is eleXsys Energy’s first raise overseas and marks a significant step for the company.  The company has over 270 customers including 11 industrial rooftops across schools and government, agricultural and commercial buildings. The raise will allow the business to continue to invest in its technology as it rapidly grows its global reach.

According to Richard Romanowski, co-founder and Executive Director, of eleXsys: “We are delighted to have completed a successful round of fundraising with Angel Investment Network. Our technology is critical for the transition to clean energy – one of the world’s most pressing challenges. Funding from investors across the world confirms the transglobal appetite for investment opportunities in new cleantech solutions, aiming to tackle global carbon reduction targets. We are a rapidly growing business and with the capital raised, we will be able to further drive our strategic plans for expansion and deliver on our goals for our new and existing investors.”

According to Sam Louis, Head of Consultancy at Angel Investment Network: “We are excited to be working with eleXsys Energy in this period of significant growth for the company. This raise ensured that eleXsys secured the backing of strategic and experienced investors as they expand their global reach and make their mark on international markets. Our passion-driven investors want to support businesses that solve real problems and there’s arguably few greater problems to solve than how to dramatically scale the move to clean energy.”

News of the raise has been covered in the media both in the UK and internationally including: UKTN, TechLoop Europe , UK Tech Investment News, Growth Business, Eminetra and 24htech Asia

Behind The Raise with Ziglu

Up next, Ziglu, a digital platform bridging the gap between cash and crypto; Yang Li, Chief Growth Office, shares his story behind the company’s £6.1 million seed round:

Tell us about Ziglu and how you came up with the idea

Ziglu was born out of the realisation that both traditional and challenger banks were preventing their customers from having access to cryptocurrencies. With the rise of cryptocurrencies we could be seeing the biggest ever transfer of funds into a new asset class, and decentralised finance (DeFi) is providing unprecedented opportunities to grow wealth.

Yet the majority of consumers are unaware of the opportunities of cryptocurrencies and DeFi, or are confused by them, or have no affordable way to participate in them. To solve this problem, Ziglu has been designed and built to combine modern challenger banking features for everyday spending with safe, simple, affordable and insured access to cryptocurrencies. 

Why did you decide to raise investment?

We saw some remarkable early customer engagement and wanted to accelerate our customer acquisition, particularly to coincide with the amazing bull run we’ve been seeing in the crypto market. Giving ownership to customers also gives them a chance to benefit in our growth and success too and that’s at the heart of what we stand for.

Furthermore, our product and tech team had built an innovative but aggressive roadmap of features that they wanted to deliver. Fundraising has meant we can now deliver new features and improve customer experiences pretty much as fast as we can think of them.  

What is your top tip for anyone raising investment for the first time?

Don’t overly focus on how your product compares to competitors. Be clear about how your product truly delights customers. No startup has failed due to competition alone. 

What attracted investors to your company?

Ziglu has an experienced team with a proven track record of building amazing startups like Starling, Monzo, Wirex, Meituan, and a product that provides a significantly better crypto-investing experience for beginners and aficionados alike. This combination of a proven track record and a visionary product and proposition has proven to be very attractive to investors.

My biggest fundraising mistake was…

Worrying too much about the aesthetics of the pitch deck.

Why did you choose to use Angel Investment Network?

Angel Investment Network stood out to us because of its superb track record of assisting innovative startups to find strategic investors: investors that provide us with first hand advice about disrupting huge industries, broaden our network of partners and add significant value beyond cash. 

What has the funding enabled?

The funding has allowed us to significantly ramp up our marketing, build new features faster and accelerate our plans for international expansion. The team is currently very focused on Ziglu’s international expansion, with our first overseas launch slated for the second half of 2021.

Keen to hear more?

If you would like to see what other companies are up to on Angel Investment Network, or are interested in raising fundraising yourself, you can find your local network here.

FOCUS ON SUSTAINABILITY

The US Government recently made a headline-grabbing commitment to a 50% reduction in carbon emissions, while the UK committed to an even steeper 78% carbon reduction by 2035. So the question on everyones’ lips is how to achieve this while ensuring economic growth continues? The solution to marrying a low carbon future with answering our continuing energy needs lies in innovation and the ideas of many brilliant startups now seeking funding.

For our latest in depth focus article, Olivia Sibony, CEO of SeedTribe takes a look at sustainability and the development of startups that have the power to help save the planet. Olivia has recently been recruited by the Government to advise on the impact-focused startups we should be encouraging to set up in the UK.  

THE NUMBERS

Size of market
The global Green Technology and Sustainability market size is anticipated to grow from USD 11.2 billion in 2020 to USD 36.6 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 26.6% according to Report Linker 

On the platform
– Renewables became the 11th most popular keyword for searches in the past year, a rise of 37 places compared to 2018. 
– This trend is being replicated by other popular keywords being used at the moment. During the pandemic Greentech became the 13th most popular keyword, up from 47th two years ago.

What is the reason for the soaring interest in sustainable focused startups during the past year?

I think the change really started snowballing in 2019. The mood music had changed on the back of consumer activism and changes to government policy. From Greta Thunburg to the Extinction Rebellion there was a concerted effort to ensure climate change became top of the agenda. It worked. Governments and businesses suddenly started making dramatic commitments to cutting carbon. While it might have been expected that investors would be retreating from these categories in favour of safer investment opportunities during the pandemic, the exciting news was these businesses are actually generating more interest from investors. 

Concerted government policy worldwide is certainly helping, along with increasing grants from the UK Government to stimulate innovation in this space. In order to hit these ambitious targets, innovation will be critical. Investors know this and so are backing the early stage startups with the vision to help governments and business in general hit these ambitious targets. We are also seeing something of a shift in the investor profiles, with some younger millennial investors coming to the fore who have purpose very much as their watchword. For many investors, rather than a ‘nice to have’ having purpose baked into their business plan is becoming a prerequisite for receiving backing.

What are investors saying about sustainability?

Investors are starting to see ESG measurements and reporting being embedded into listed companies and realising that the more they invest in companies that do this from the outset, the better chance they have of succeeding as they scale. It’s important to note that a lot of investors are interested in this segment but struggling to understand it, as there’s a sliding scale of shades of grey in what the “impact” and investment spaces, ranging from profit-first to impact-first. 

Our belief is that there shouldn’t need to be a compromise, so that profit and purpose are perfectly aligned and inextricably intertwined. The key difference is that it’s important to take a long-term view as some of the growth may be slower, but in the long term it’s more sustainable so has a better horizon for long-term profit. So investors are interested in this space but need help understanding the change in growth curve. When investors understand that growing consumer demand (culture), coupled with an increase in regulation (policy, systemic change) are driving this growth, it’s a clear path for investment for anyone looking beyond a three year horizon for their investments.

What innovations are most needed to power sustainability?

The three key areas of focus should be circular economy, carbon-capturing technology and renewable energy. We need a big focus on the entire food and agriculture chain where farming needs to capture carbon, food should be produced as close to home as possible, vertical farming practices are further developed, food surplus becomes minimal and a resource to turn into energy. Where water from agriculture is clean and no longer contaminates our waterbeds. We need to focus on trapping heat emissions from carbon and methane in order to slow down the melting ice caps. The quicker the ice caps melt, the more gases and unknown bacteria and viruses will be released and the harder it will be to reverse. We’ve already seen the impacts of one single lone virus and this should be a good incentive for us to not release unknown ones that have been trapped in our ice caps for millennia and have potential to cause incalculable damage. 

CASE STUDIES

Zoï environmental network uses its technology to treat and monitor wastewater systems, especially cleaning fats from public drains and pipes. Their core product is an environmentally-friendly system which doses special bacteria to the wastewater system and degrades the fat molecules in the system. The system prevents the development of fatbergs in the sewer & wastewater systems, allowing cleaner water to flow through our systems. Check out this Video of them.

Bionat Solutions is a Certified organic solution applied in the waxing process of fruits, with the aim of providing a longer shelf life without using fungicides or artificial products. The novelty is in the circular alternative made from the same agroindustry residues to increase the useful life of fruits.

Biohm is a multi-award-winning research and development led, bio-manufacturing company. The company enables the use of healthy, environmentally friendly, circular materials like food waste and transforms it into building solutions which can apply across the design and construction industries. This eliminates the concept of waste, demonstrating how business can equitably and ethically work in collaboration with the natural world, industry, academia, government and community.


Zero Carbon Farms has developed a data-driven system 70x more productive than traditional farmland. It uses 100% renewable energy, 70% less water and reduces food miles/food waste. Not only is the produce consistent quality, highly nutritious and herbicide-free, it is also hyper-local and year-round, specialising in subterranean farming.

Join Olivia Sibony on Thursday June 3rd in the next AIN ClubHouse ‘Business as a force for good’ session where she will be discussing how startups can pave the way to a zero carbon future for food production.

Research & Development Relief: An Overview for Startups 

In this guest blog, James Taylor, Director at Dragon Argent, shares his top tips of how start ups can claim R&D tax credits, a useful relief or rebate from HMRC. Here are the key things that you need to know:

Many new businesses spend the first season of their existence researching and developing a concept or a prototype.  They then prove their product market fit, secure their first customers and start generating revenue.  What some founders don’t realise however, is that any project which advances the fields of science or technology are eligible for tax relief, through its annual corporation tax return. 

This extra relief could be as much as 25% of the cost of the project.  For a loss-making company, a cash rebate of up to 33.5% is available in lieu of tax relief, which is often paid within 4 weeks or a successful claim being made.  

This relief or rebate could make a huge difference to a bootstrapping startup and as HMRC believe that 75% of business who could be claiming R&D tax relief do not, it is too often a missed opportunity.  

Does Your Business Qualify?

You can claim R&D relief up to two years after the end of the accounting period of the expenditure. The following criteria are flags that you could be eligible: 

You are innovating, improving, or inventing processes or technologies which are not currently available on the market.

To your knowledge, at the start of the project you have no clear answer of how the project will conclude. This uncertainty proves the first point that the development is producing new knowledge.

You can document evidence of your research and development, and the expenditure relating to these activities

Eligible Costs 

If your company meet the criteria laid out above, you should endeavour to maintain detailed records of every cost associated with the project, including:

Staff costs associated with the project. Some staff may work entirely on the project. In these instances, it is straightforward. Other staff may work a proportion of their time on this project, or on things associated with the project such as recruiting someone to work on the project. Using timesheets or similar, a log should be kept of this proportion as that might be eligible. For example, a staff member who works 30% of their time on the project while on a salary of £30,000 can be deemed a cost of £9,000 on which extra tax relief is available.

Subcontracted staff. On the same basis as above, the costs associated with subcontractors rather than employees is eligible.

Software associated with the project. If software was bought or licensed entirely or in part to service the project, these costs are eligible too.

Consumables. Any utilities or materials used in the project are eligible for tax relief.

Ineligible costs. These include the costs of distributing the goods produced, capital expenditure, rent or rates, and the cost of patents.

R&D Tax Credit Cap 

As part of the Finance Bill 2021, introduced in April, HMRC have announced a cap on the amount that a loss-making SME can receive in R&D tax credits to stop abuse of the scheme.

Currently, loss-making companies can reduce the cost of their R&D by up to 33%. However this amount will be capped at a maximum of £20,000 plus 3 times the total PAYE and NI paid by the company in the year.

HMRC have maintained that the aim of this legislation is to target those who are seeking to abuse the system, rather than genuine claimants. However, SMEs with very few staff, or with directors taking low salaries, may also be affected by this.

If an SME is loss-making, normally claims around £25,000 in R&D credit but whose only employees are directors being paid a non-tax attracting director’s salary will now only be able to claim £20,000, a loss of £5,000 on their previous expectation.

This means that it may become tax-efficient for the company to increase their director’s salary so that it attracts National Insurance so that 3 times that amount can then be reclaimed through R&D. There will be other implications of doing this so it should always be considered in conjunction with these other factors.

HMRC have also included an exemption for any entity who meets the following two tests:

The company’s employees are creating ‘relevant intellectual property’.

Expenditure spent on work subcontracted to a related party makes up under 15% of the total R&D expenditure

The tax relief an R&D claim results in can often make a big difference to startups and SMEs at a critical stage in their development.  Its sensible to seek professional advice to make the process of claiming as efficient and fruitful as possible and also to ensure the business as a whole is tax efficient in respect to the new R&D Cap. 

#SixtySecondStartup You’ve Got This

  1. What does your company do?

You’ve Got This is a talent marketplace for startups. We bring together experienced professional talent with the UK’s fast growing startup ecosystem. 

We’re making it quick and simple for hiring teams to find mission aligned team members with the sales, finance, product and sector knowledge they need now. 

We enable you to get to know each other on a project basis and hire on an employment basis when the time is right. 

  1. Why did you set up this company?

Covid has accelerated job losses but it’s also given us the opportunity to weigh up our priorities and how we allocate our resources. Many of us want to be more efficient with our time and to work on things that connect with our values and sense of purpose. 

At the same time more mission driven businesses are being created. Innovative startups and SMEs are looking for ways to bring on flexible diverse talent, and that is harder to find through traditional channels. 

They look for highly skilled individuals that can get them through the early years and establish shared values and trust before they hire long term employees. That’s where we come in. I felt there was an opportunity to use technology to help us find meaningful flexible work with businesses and become their early team members if there’s a fit. 

  1. How did you get your first customer? 

Our first customer came through our co-working space. They’re a startup in the renewables space. They had tried platforms like Upwork but couldn’t find what they needed; someone with specific qualifications, who could work part-time, come into the office a couple of days a week and become their first hire down the line. 

  1. We knew we were onto something when? 

We had a first degree connection with the first 50 professionals that signed up to the platform. After that we started to get referrals from individuals who we’d matched for conversations with businesses.

Similarly one of our businesses who we matched with a part-time Finance Director came and asked if we could connect them with a Sales and Marketing expert. 

Together with my CTO Stephen, we’ve built a platform based on customer insight and a roadmap that positions us well alongside platforms such as Upwork and People Per Hour. 

We’re now producing content for our user base on joining and building high performance teams. Our content has been reshared by NatWest business builder and venture capital funds.

  1. Our business model: 

We’ve looked to modernise the traditional recruitment model of upfront commission on annual salaries. Many of our startups find this prohibitive in the early stages. It’s free to search and start connecting with available professionals. 

We apply a service charge on the value of bookings made through the platform. We also provide the process for getting timesheets approved and payments made once work is complete. You can read more about our pricing on our website here

Based upon our conversations with our  business users, we’re planning to launch a pay monthly service with a discounted service fee and extra features for our regular users. 

We think that there’s growth in this sector because:

The gig economy is growing rapidly, with 50% of the workforce are expected to be full-time or part-time self-employed by 2025. 

Automation is replacing the jobs of people who have worked in one sector for many years, pushing people to make a career change later in life.

There are 1.3 million SMEs in the UK (1-49 staff), currently spending an average of £6,000 per year on recruitment. This market is worth £7.9 billion. We’re looking at entering new markets in the future.

Start-up Buzz

If there is one positive from the pandemic, it has been the sheer volume of innovation and exciting businesses that are forming and growing as a result, as markets shift and new trends emerge. 

Each month we’ll select a few start-ups that we see as particularly exciting and worth a further look. Here are some of the current highlights: 

Zero Carbon Farms

Farming needs to evolve. Urbanization, population growth and climate change demand it.

Food supply challenges are well documented – Covid-19 has seen empty supermarket shelves and highlighted the need for secure supply chains, awareness of the damage of pesticides and GMO crops is growing, and extreme weather events are making food production more unreliable. 

Enter Zero Carbon Food (ZCF), a cutting edge AgTech company that builds and operates controlled environment farms, providing a future-proof and sustainable solution for growing. This innovative method allows them to use less water, less space and run on 100% renewable energy. Their first farm? It’s 13 storeys below London in a WW2 air raid shelter.

ZCF supplies brands nationwide including M&S, Tesco Whole Foods and is discussing an international licensing agreement. 

ZCF Pitch

Anatome 

Anatome is an innovative healthcare brand, founded by an exited entrepreneur. Built on the founder’s passion for apothecaries of old and combining it with cutting edge science. It’s already on track to turnover £1.3 million and is playing in the global wellness market,with a total size of $7.2 trillion. 

It’s a digital first platform focused on online sales, but also leveraging real world stores to activate customers in premium locations, including Marylebone, Chelsea and Islington.

On top of this it’s FDA approved, has margins in excess of 70% and has developed partnerships with the Hug group and Space NK.  

Anatome Pitch

ClearWaste

ClearWaste is the first platform of it’s kind offering a price comparison site for household waste – it’s effectively Money Supermarket for household waste. 

Founded by a former EY Entrepreneur of the year, the business has gained traction by helping citizens report where rubbish has been illegally left, and councils link it back to the culprit. Each month ClearWaste submits thousands of reports to local communities. 

ClearWaste has over 500 certified waste removal companies on it’s platform, has hit the top 10 on the Apple app store and is projecting £729k revenue this year. 

ClearWaste Pitch