The Development Bank of Wales has confirmed its backing for Llandrindod Wells-based Riversimple in a £1.5 million funding round to power consumer trials of Welsh hydrogen cars.
HRH Pays a Visit Riversimple got a £580,000 investment from a syndicate of Welsh business angels led by lead investor Andrew Diplock earlier this month. The Wales Angel Co-Investment Fund, which is managed by the Development Bank of Wales, will provide match funding of £250,000. Seedrs’ crowd fundraising campaign is now fully funded, and the company has received advanced permission from HMRC for the Enterprise Investment Scheme, which provides tax incentives to qualifying investors.
Riversimple will utilize the cash to construct vehicles for customer testing that began earlier this year in Abergavenny. Additionally, the cash will enable the company to apply for subsidies from the Office of Zero Emission Vehicles for the trials and from Innovate UK for involvement in the Milford Haven Energy Kingdom, a green hydrogen energy system that encompasses heating, power, and personal transportation.
Lead Investor and entrepreneur Andrew Diplock said: “I’ve been aware of Riversimple for some time, and it feels like the stars are aligning for this forward-thinking company. Climate change, Brexit and a post-pandemic recovery all point to the need for capital to be deployed in sustainable businesses which can have real impact on our society and environment. They have a proven technology that can scale globally and so I see Riversimple as a great investment opportunity for this syndicate.”
Hugo Spowers, founder and Managing Director of Riversimple said: “We are delighted to welcome Andrew, all the other syndicate investors and the Development Bank of Wales to the growing list of Riversimple investors who want to see a shift to a more sustainable and greener economy. Wales has been a wonderful place to develop our technology, build our business and refine our service proposition so it is fantastic to have their support as embark on the next stage of our journey.”
Chris Foxall, Finance Director for Riversimple commented: “Our strategy is focussed on scaling-up significantly which is why we’ve been working so hard on our plans for manufacturing facilities and developing the relationships with like-minded organisations such as Siemens to help us deliver on our ambition. We’ll be providing high quality jobs in Wales through our R&D centre, production sites and wider supply chain and have appointed Gambit Corporate Finance to lead an institutional raise to fund our long-term business plan. We’re very grateful that the angel syndicate and the Development Bank of Wales recognise the benefits to the Welsh economy that a sustainable SME like Riversimple can bring.”
Mike Owen, Group Investment Director for the Development Bank of Wales said: ”We’re really excited about the opportunities for the green economy in Wales. Hugo and the team at Riversimple are proving that efficiency and sustainability can be profitable and does make good business sense.
“Working with Andrew as the lead investor, we are delighted that our funding will be the cornerstone investment for the crowdfunding campaign and help Riversimple to create high-quality long-term jobs for Wales and cleaner modes of transport that benefit the environment.”