Maven backs high-tech space communications firm aXenic with £500,000 investment

Sarah Newbould of the British Business Bank, Stephen Clements of aXenic, Kerry Walker of Business Durham and Michael Dickens of Maven copy

aXenic, a leading manufacturer of advanced optical modulators used in satellite communications, has secured a £500,000 investment to support its continued growth following global demand for its technology. The funding includes £250,000 from NPIF II – Maven Equity Finance as part of the British Business Bank’s Northern Powerhouse Investment Fund II (“NPIF II”) and £250,000 from the Finance Durham Fund established by Durham County Council and overseen by Business Durham, both managed by Maven Capital Partners (“Maven”).

Based at the North East Technology Park (NETPark) in Durham since its spin-out from a NASDAQ-listed components manufacturer in 2015, aXenic has seen strong demand for its technology grow to the point where its current facility has reached full capacity. The capital injection will allow the business to scale its infrastructure and operations, embark on a recruitment drive and allow aXenic to invest in equipment and stock to meet growing demand from new and existing customers as it expands its reach.

aXenic develops and supplies complex electronic components that enable high-speed optical communication in space. Its technology is used in Low Earth Orbit (LEO) satellite constellations and aerospace applications, with current customers including major European satellite and aerospace manufacturers as well as international space agencies and emerging players in the global satellite communications market.

Stephen Clements, CEO at aXenic, said: “Working closely with our wide range of satellite customers, aXenic has been able to build a global reputation for its unique technology, built on decades of world leading engineering expertise within the company.  Having reached the point where capacity, equipment and working space is limiting our ability to grow further, we are delighted to have closed this finance round with Maven to support our next stage of growth in the optical satellite communication market. We are seeing huge demand for our strategically important devices and this funding provides scope for us to grow, along with the emerging market for the use of optics in space, to bring the equivalent improvement in bandwidth that fibre-optics has brought to the terrestrial communication market.”

Michael Dickens, Investment Manager at Maven, said: “aXenic has developed a globally competitive product with clear relevance to the fast-growing satellite communications market. With impressive traction across leading satellite and aerospace players, and a base at one of the UK’s leading science parks, the business is well positioned to capitalise on the rapid expansion of space-based connectivity. We’re pleased to support Stephen and the team as they enter this next phase of growth.”

Cllr Joe Quinn, Durham County Council cabinet member for Resources, Investments and Assets, said: “It’s fantastic to see Finance Durham supporting aXenic in their continued growth at NETPark, one of our county’s priority innovation sites. Their expansion reflects our ambition to supercharge County Durham’s economy by backing pioneering companies, creating high-quality jobs, and strengthening our reputation as the best place in the North East to do business. By fostering the success of businesses like aXenic, we’re not only supporting enterprise today but also helping to deliver the skills, opportunities, and investment that will drive our economy forward for years to come.”

Sarah Newbould, Senior Investment Manager at the British Business Bank said: “We are proud to support aXenic as it continues to grow and innovate from its base in the North East. This investment will help strengthen the region’s reputation as a hub for advanced technology and create new opportunities in the local economy. It’s exactly the type of ambitious business we want to see thrive through the Northern Powerhouse Investment Fund, and we wish the team every success as they scale up.”

The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

The Finance Durham Fund is part of Durham County Councils strategy to deliver economic growth across County Durham by supporting local ambitious and entrepreneurial businesses who need access to the funding they require to grow. The Fund provides flexible equity, debt or mezzanine funding packages from £150,000 to £2 million for early stage and established businesses, investing across all sectors.