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Oxford Capital Leads Microbial Solutions Funding Round

Microbial Solutions Limited, which uses microbes to dispose of industrial waste safely, has completed an investment round led by existing investors Oxford Capital and Midven. The investment will enable Microbial Solutions to build its sales capability and expand its operations into Europe, North America and Asia.

Microbial Solutions’ Microcycle™ technology has been proven in rigorous industrial trials and is being used to treat oily waste fluids at a major manufacturing plant in Wales, creating ‘grey water’ that can be safely disposed of in normal sewer systems.

Ted Mott, Managing Partner, Oxford Capital, said: “Microbial solutions is poised for strong growth as regulatory constraints on the disposal of industrial waste are creating a growing market for its technology. This latest funding round will enable the company to move from the development stage into driving commercial sales. We are very excited about the prospects for the business.”

Jeremy Warren, Chief Executive Officer, Microbial Solutions, said: “After seven years of intensive scientific and industrial development, Professor Will Pope and his team have proven this technology through rigorous industrial trials and given the business a platform for rapid growth. We are now positioned to expand our commercial sales operation and to expand our operations into Europe, North America and Asia.”

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Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    1. If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
  2. You are unlikely to be protected if something goes wrong
    1. Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
    2. Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
  3. You won’t get your money back quickly
    1. Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    2. The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
    3. If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.
  4. Don’t put all your eggs in one basket
    1. Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    2. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. https://www.fca.org.uk/investsmart/5-questions-ask-you-invest
  5. The value of your investment can be reduced
    1. The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
    2. These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

 

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.