The next big thing will come from something small. Ground-breaking SMEs that will revolutionise the automotive, transport and mobility industries are disrupting the sector and attracting investors looking to support green transport technologies.
SMEs play a vital role in the UK economy, driving growth, employment and innovation. Accounting for around half of all turnover in the UK private sector and employing roughly 45% of the British workforce.
In the automotive industry specifically, SMEs are often highly specialised and export-oriented, forming essential links in global supply chains.
To capitalise on the opportunities that this dynamic sector represents, the Advanced Propulsion Centre UK (APC) and its Technology Developer Accelerator Programme (TDAP) supports small companies at the most risky part of their growth journey – be it start-ups, university spinouts or more mature organisations. The APC supports businesses that have an early-stage automotive technology concept and want to accelerate their route to market. This is with targeted grant funding, commercialisation strategy support and business mentoring over an 18-month term, and beyond.
This strategy is delivering results. It has already supported seven cohorts through the programme, the participants of which have raised around £300m in private investment since 2015.
This success has been recognised by industry, with the programme recently being awarded ‘Accelerator of the Year’ at the 2024 UK Business Angels Association (UKBAA) Angel Investment Awards.
The stamp of approval from the investor community follows several years of relationship building and supporting early-stage founders such as by helping them to create connections to form profitable new partnerships. The APC has joined forces with the UKBAA to shine a spotlight on exciting clean automotive, transport and mobility innovators by participating in the annual Mobilise the Future pitching event.
The aim of these events is to invite ten companies to pitch to eager investors, to help the UK remain competitive in the research, development and production of low-carbon automotive technologies. It is a showcase of clean mobility innovation. And it’s working.
In just over a year, the 2023 cohort of pitching companies had gone on to raise a total of nearly £20m, including £2m in grants and £17.2m in equity investment.
It presents SMEs with the chance to secure financial support for their innovative projects in the automotive sector, helping them commercialise their cutting-edge technologies and contribute to the growth of the UK automotive industry.
Entrepreneurship is not an easy game, and events like Mobilise the Future provide opportunity to get in front of the right stakeholders and unlock that potential. The companies include several that have been part of the APC’s TDAP.
For example, solid-state sodium battery technology innovators, LiNa Energy, recently pulled in £3.5m to scale up its manufacturing towards full commercialisation.
About:Energy, a top 100 UK start-up, raised £1.5m and started £2m worth of grant funded projects in 2023 for its battery virtual prototyping software solutions.
In 2022, TDAP alum White Motorcycle Concepts, which pioneers an electric hybrid ‘first responder’ motorcycle secured £300k investment from The British Design Fund.
Why invest in UK automotive SMEs?
Speaking after 2024’s Mobilise the Future showcase, held at the UK’s tallest building (to match the lofty ambitions of those involved) venture capitalists Atlas Ventures explained its latest investment in Integrals Power – a developer of high-performance battery cathode materials.
Founding Partner Duran Cesur said: “Atlas Ventures is an industrial tech investor where automotive and energy transition themes make up a large part of our focus, which is why the “Mobilise the Future” event was of particular relevance for us. We were also excited to see our portfolio company Integrals Power participating at the event.
“Integrals Power has developed a new manufacturing technique for LFP/LFMP cathode materials which leads to superior battery performance. Integrals Power is now a viable option for UK-based automotive and battery players looking to re-shore their supply chains in the West, and look to switch to LFP/LFMP that emerged as the preferred choice of chemistry for large scale EV production.”
Learn more about how the APC and its partners such as the UKBAA are supporting these companies with business guidance, grant funding and investment via our website: SME Support – Advanced Propulsion Centre. And who knows, you might come across the next big thing before it bursts onto the scene.
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