Phlux Technology, a pioneering UK startup in infrared sensor technology, has announced a £9 million Series A funding round. BGF, the UK and Ireland’s most active growth capital investor, led the round with funding from existing backers including Octopus Ventures, Northern Gritstone, and Foresight.
The funding will accelerate Phlux’s expansion into optical communications and sensing industries by leveraging its world-first antimonide-based semiconductor technology to deliver faster, more energy-efficient sensor and connectivity systems.
Building on its world-leading research from the University of Sheffield, Phlux will use the investment to scale its team, ramp up production, and launch two new product ranges targeting optical communications and sensing systems.
Phlux’s ultra-low-noise infrared sensors are set to dramatically improve the performance of communications systems to enable up to 5x higher data rates for free-space and fibre-optic communication systems, enhancing global connectivity. Early engineering samples have shown sensitivity improvements of 5dB or more are realisable, compared to current commercial devices. Additionally, Phlux’s infrared sensors will play a crucial role in advanced sensing technologies that include driver-assisted safety features in vehicles, industrial automation, defence and security and high-precision gas sensing.
Scaling to Meet Global Demand
Since its £4 million seed funding round led by Octopus Ventures in 2022, the company has built a global, fabless supply chain to address high volume markets and already serves customers in Asia, Europe and North America. Phlux has ambitions to become the world leader in infrared sensing and with this new funding, will expand its engineering and commercial teams, ramp up production, and accelerate the commercial launch of its new product lines. The company will also deepen partnerships with leading industry players, ensuring widespread adoption of its technology in global communication networks.
Commenting on how the new funds will be used, Phlux CEO, Ben White, said, “This funding comes at a pivotal moment as demand for high-speed optical communication systems is growing enormously. By developing world-class, high-performance infrared sensors, we are enabling industries to push the boundaries of connectivity, efficiency, and security by removing a technology bottleneck that has persisted for over 20 years.”
Luke Rajah, Partner at BGF, said, "Phlux has developed a game-changing technology in a sector that’s long overdue for disruption. With strong academic roots, early commercial traction, and a compelling roadmap, the team is well-positioned to lead in infrared sensing. Backed by BGF’s deep tech investment experience, we’re excited to support Phlux in scaling globally across the sensing and telecommunications markets."
Owen Metters, Investor at Octopus Ventures, said, “When we first invested in Phlux, we were impressed with both the team’s expertise in developing novel semiconductor materials, and their ambition to revolutionise infrared sensing. We’ve been delighted with their progress to date and are excited to see this funding deployed to grow the team and bring two exciting new product ranges to market.”
For Northern Gritstone, CEO, Duncan Johnson added, “Infrared sensors are advancing many critical everyday areas such as providing internet access to people's homes and aiding advanced safety and mobility. Phlux is a fantastic example of semiconductor innovation in the North of England and Northern Gritstone is proud to continue supporting the Phlux team under Ben White’s leadership.”
About The Investors
BGF was set up in 2011 and has invested £4.5 billion in more than 600 companies to date making it the most active growth capital investor in the UK. BGF is a minority, non-controlling equity partner with a patient outlook on investments, based on shared long-term goals with the management teams it backs. BGF invests in growing businesses in the UK and Ireland through its network of 15 offices. BGF’s early-stage team has backed a wide range of ambitious founders at the forefront of innovation, with a strong track record of investing in deep tech businesses across sectors such as semiconductors, advanced materials and AI, among others. BGF is a certified UK B Corporation (B Corp), reflecting its commitment to creating a positive impact across the growth economy.
Octopus Ventures, part of Octopus Group, is one of the most active venture capital investors in the UK and Europe. It’s on a mission to invest in the people, ideas and industries that will change the world. They back entrepreneurs ─ from the first cheque their business receives, right through to IPO. They manage £1.8bn and are investing in more than 200 businesses, focusing on the companies solving three of the world’s biggest problems: those building a sustainable planet, empowering people, and revitalising healthcare.
Northern Gritstone Northern Gritstone is an investment company, dedicated to supporting ambitious science and technology businesses in the North of England. Its philosophy is ‘profit with purpose’ combining strong returns for investors with wider positive, societal and economic impact, including high-skilled job creation and Levelling Up. Chaired by Lord Jim O’Neill, the company has made 31 investments in some of the UK’s most exciting future businesses. Together with NG Innovation Services, Northern Gritstone offers ‘Capital+++’ connecting early-stage founders with funding and expertise through its close links to industry-leading partners and its founding universities of Manchester, Leeds and Sheffield.
For more information, please go to: https://northern-gritstone.com/
Foresight Group Founded in 1984, Foresight is a leading investment manager in real assets and capital for growth, operating across UK, Europe, and Australia. With decades of experience, Foresight offers investors access to attractive investment opportunities at the forefront of change. Foresight actively builds and grows investment solutions to support the energy transition, decarbonise industry, enhance nature recovery and realise the economic potential of ambitious companies. A constituent of the FTSE 250 index, Foresight’s diversified investment strategies combine financial and operational skillsets to maximise asset value and provide attractive returns to its investors. Its wide range of private and public funds is complemented with a variety of investment solutions designed for the retail market. Foresight is united by a shared commitment to build a sustainable future and grow thriving companies and economies. Visit https://foresight.group for more information. Follow us on LinkedIn for key updates.