Vascular Flow Technologies has closed a £10 million financing round. The funds will support the company’s realignment of business strategy to focus on research and development, as well as strategic joint development and out-licensing agreements with leading industry partners.
The equity round consisted of two concurrent transactions; a £7 million loan note restructuring into the Series A Ordinary Preference shares and a £3 million Series B capital increase. The Series B financing round was led by an undisclosed family office and supported by institutional and individual angel investors.
Vascular Flow Technologies will use the £10 million towards the development of the company as a technology transfer business. The company will be refocusing on the core competency of applying its proprietary Spiral laminar flow (SLF) technology to vascular and endovascular devices, using computational fluid dynamics (CFD) and finite element analysis (FEA) to support this work.
Vascular Flow Technologies’ SLF technology is a unique, intellectual property-protected design which is intended to eliminate the turbulent blood flow seen in diseased vessels and standard prosthetic vascular grafts. By reintroducing the normal pattern of blood flow through the vessel, graft failure and complications for the patient are significantly reduced. The technology is built on an extensive base of evidence produced using CFD (models of fluid flow created with numerical analysis) and FEA (virtual modelling to problem solve potential stresses on vessel walls). A number of clinical evidence programs are also underway in the USA and Europe, establishing long term clinical and economic outcomes.
Bill Allan, chief executive officer of Vascular Flow Technologies comments, “The £10 million secured in this investment round will make a significant impact on the transition, and allow us to continue to work with the key players in the sector to apply SLF technology to address unmet clinical needs in vascular and endovascular markets. In addition, the financing will enable us to build further clinical and health economic evidence for SLF technology.”
The new business model should see an increase in collaborative work, which will allow Vascular Flow Technologies to further accelerate its research and development projects. Current collaborations include ongoing work in stents and haemodialysis access catheters.
Catalysis Capital Partners acted as the exclusive financial advisor to Vascular Flow Technologies on the financing.