07/04/2016

Jellagen Pty Ltd completes a new £1.5 million equity investment

Jellagen Pty Ltd, a medical-technology company announces the completion of a further £1,533,000 equity investment led by Angels in Medcity/London Business Angels and Finance Wales with co-investment from xénos, the Wales Business Angel Network and other existing investors.

Jellagen, is exploiting jellyfish to provide the market with a next generation collagen biomaterial that is perceived safer and more technically versatile than current sources of mammalian derived collagen. Collagen is used in the manufacture of biomaterials due to its ability to form strong fibres and used in many forms, including gels scaffolds, and membranes, for a number of medical applications ranging from wound care and soft tissue repair through to bone grafts as collagen is the chief structural protein of the body. Jellagen’s current range of research grade collagen products are already on market for cell culture application and the business is also conducting in-house development of new medical devices for wound and cartilage repair. The company operates out of the Pembrokeshire Science & Technology Park, Pembroke Dock.

Jellagen will use this new financing to expand and increase its jellyfish collagen processing capacity and to establish a Quality Management System able to support a  GMP process. The business intends to recruit up to six new staff over the next two years and will use the financing to strengthen and build its IP portfolio as well as business development and marketing activities to increase sales.

Dr Andrew Mearns Spragg, the Company’s Co-Founder & Chief Executive Officer said “We are really pleased by the continued investment and support shown by Finance Wales which reflects the good achievements made by the company to date. I am also delighted by the high level of angel investment secured in this round and particularly generated from our successful bids to pitch at the Angels in Medcity and London Business Angels events held in London in 2015. The new and existing angels bring a wealth of sector as well as financial experience and crucially will be able to open doors that will be of significant value as Jellagen grows.”

The funding package includes a six-figure equity investment from Finance Wales structured by Dr Melanie Goward, Deputy Fund Manager in Finance Wales Technology Venture Investments team.

Speaking about the latest round, Dr Goward said: “As a long term investor, we are pleased to be able to support Jellagen again through a new round of equity investment allowing the
 
business to continue to build on its early success. With its products now beginning to have a positive impact on the market, Jellagen are able to invest in scaling up the production and promotion of its collagen biomaterial whilst also developing the scope and use of its medical technology.”

The funding is the second round of investment. The company previously secured £550,000 seed funding in April 2014 from Finance Wales and from xénos, the Wales Business Angel network. xénos facilitated first round funding for Jellagen and is pleased that its angel investors are re-investing alongside a new xénos investor in this latest round.

The syndicate of 17 business angels including investment from the London Business Angels EIS Roundtable Syndicate 2015 fund matched the package from Finance Wales with an eight figure equity investment. The lead angel investor Mr Thomas-Paul Descamps, a business angel with a considerable background and expertise in the life science sector added, “We love the story, combining the commercial potential of the “next generation” collagen with marine and environmental concerns that goes with jellyfish. We are very pleased and excited to support the management in this major step for the future of the company”.

London Business Angels CEO, Anthony Clarke, commented, “following this substantial funding round, Jellagen is now well placed to grow its exciting business of commercialising its range of next generation jellyfish collagen biomaterial products. I am pleased that an Angels in Medcity/London Business Angels syndicate, led by a highly experienced life science  executive  Thomas-Paul  Descamps,  has  made  a  significant  investment  of  over
£900k in this investment round.”