Syndicates support engineer
£1.5m backing for Vert’s ‘game-changing’ technology
Business angel syndicate Equity Gap led the deal alongside the venture capital firm Par Equity, US syndicate Aero-Den, and the Scottish Investment Bank, the investment arm of Scottish Enterprise.
Vert Rotors was founded by technology entrepreneur and angel investor Olly Dmitriev (pictured) in 2013 and produces low-volume, lightweight compressors designed for aerospace, medical and other applications.
The company will increase capacity at its factory in Gracemount and expand its customer base. It plans to increase the payroll and is recruitng an initial five workers from the oil and gas industry.
Mr Dmitriev said: “This investment brings valuable highly skilled manufacturing jobs to Edinburgh and allows Vert Rotors to increase our sales outreach. Our products are fully manufactured in Scotland and exported to Europe and the US.”
Jock Millican of Equity Gap said: “Vert Rotors has potential to disrupt the established marketplace significantly with its high quality products. Olly has an excellent track record in business and has a clear vision for the future of the company.”
Paul Atkinson, partner in Par Equity, described the deal as “an exciting investment for Par Equity” and said the company had “game-changing technology with global market potential.”
Ian Aitken, representing Aero Den syndicate, said its members seeks out firms engaged in developing advanced technology that improves the environment and people’s lives.
“VERT certainly meets these requirements,” he said.
Kerry Sharp, Head of the Scottish Investment Bank, said Vert was an “ambitious and innovative engineering business”.
She added: “This investment is great news for Vert Rotors and for the former oil and gas employees.”
VERT created its prototype in 2013. Professor Ian Arbon, former managing director of Howden Compressors, former managing director of Peter Brotherhood, and founder of Caledonian Compressors, joined the company as chairman in 2014.
VERT’s customers include Fortune-500 manufacturing companies in the EU and the US, and 75% of customers are outside the UK.
Compressed air accounts for 10% of industrial electricity demand and the global market for industrial compressors is expected to exceed $13.5 billion by 2017.
Mr Dmitriev has 15 years experience in software project management with a dual EMBA degree from the Colombia and London business schools.
He is a member of American Society of Mechanical Engineers, and author of three patents and multiple papers about Vert’s compressor technology.