H2O Networks has pioneered and developed a unique concept, the FS Focus System, to deploy fibre optical cable in the UK’s waste water network. The company’s cost effective and environmentally friendly method allows health, education and manufacturing organisations to set up secure IT and telecom networks, without the traffic disruption associated with traditional methods.
Enterprise Ventures first invested in the company during late 2006 to finance the company’s growth plans and this follow-on round of funding will support the company’s ongoing development, the recruitment of sales & support staff and its relocation into Lancashire.
Since EV first invested, H2O Networks has completed successful installations of its concept at Edinburgh’s Napier University, in partnership with Scottish Water, and at Bournemouth Borough Council, amongst others and is currently in talks with a number of potential customers.
Wayne Thomas, Investment Director at EV, says, “Since we originally invested, the business has made significant commercial progress and is making major headway in both the public and private sector. The further funding provided will allow the business to consolidate its position in these markets and recruit additional staff to drive the business forward. The business has attracted considerable interest from both the commercial and financial communities and discussions are underway regarding a potential IPO of the business in early 2008”.
Commenting on the investment, Elfed Thomas said: “The market dynamics are ideal for us as there is currently a huge lack of investment in infrastructure across the UK. We’re looking forward to further developing our offering with the help of EV and are excited about the future.”
Operating from offices in Preston and Leeds, Enterprise Ventures manages a range of venture capital and private equity funds offering syndicated funding packages of up to £2 million to new and existing companies based throughout the North of England and the Midlands regions.