Prudhoe-based Dragonfly Advanced Materials has secured a £1m boost to help scale up its operations and create jobs. The company has received £500,000 in investment from Northstar Ventures, alongside a £500,000 grant from Innovate UK’s investor partnership programme, to support the scale-up of its aerogel manufacturing technology.
The firm’s innovation has the potential to reduce production costs and unlock new industrial applications for one of the world’s most advanced materials.
Funding from regional universities
Northstar Ventures has invested in Dragonfly from the North East Spinout Inspire Fund, which is backed by the region’s five universities and the North East Mayoral Strategic Authority to help commercialise research and innovation emerging from the universities. Dragonfly is a spin-out from research at Newcastle University.
The funding will be used to increase production capacity, grow the company’s sales and development team, and support continued work with industrial partners as Dragonfly progresses development opportunities towards future licensing agreements. Its growth aligns with Northumberland County Council’s economic strategy, which identifies advanced manufacturing and engineering as key growth sectors for the region.
Company leaders comment on milestone
John Baines, CEO of Dragonfly Advanced Materials, said: “This investment marks an important milestone in Dragonfly’s progression from university spinout to commercial advanced materials business.
“Over recent years, we have focused on developing and protecting our technology, expanding our intellectual property portfolio to three patents, scaling our manufacturing capability and building relationships with industrial partners. This investment, alongside the Innovate UK Investor Partnership award, provides the resources needed to accelerate commercial deployment and support the next phase of growth.
“We are grateful for the continued support of Northstar Ventures, Newcastle University and our wider stakeholders. With the majority of our scale-up infrastructure now in place, our focus is increasingly on customer adoption, commercialisation, licensing opportunities and creating long-term shareholder value.”
Support from university and investors
Rick McCordall, head of venture creation at Newcastle University, said: “We are delighted to see Dragonfly Advanced Materials continue to develop and scale since it was spun out of Newcastle University in 2020. This funding from the North East Spin Out Inspire Fund alongside the Innovate UK grant will enable the company to continue to disrupt the market and drive revenue.
“This is another great example of a research based technology developed by our academics transitioning into a commercially successful business. We will continue to support Dragonfly and others to achieve this commercial success.”
Tom O’Neill, investment manager at Northstar Ventures, said: “Dragonfly has developed a versatile, highly differentiated advanced materials technology with the potential to disrupt the industry by unlocking new applications for aerogels across major industrial markets. The company has made significant progress since our last investment and we are very pleased to support the team with further funding.
“The North East has a strong track record in translating university research into companies with global potential. Dragonfly is a great example of the region’s ability to generate Deep Tech businesses that can address major industrial challenges whilst creating high-value opportunities in the local economy.”
