A fast-growing Leamington Spa start-up that manufactures components for Formula One (F1) customers has secured a £150,000 loan from the Midlands Engine Investment Fund II, through appointed fund manager
Frontier Development Capital (FDC).
MV Composites has increased staff numbers from three to 17 over the past two years and has seen a 10-fold rise in turnover. The company has recently tripled its floorspace with a move to a larger 5,000ft
2 premises. The funding will enable it to complete the fit-out and create five more jobs in the coming weeks.
The company manufactures high-performance carbon fibre components and offers a full service from concept to prototype and production. Founded in 2021, it is led by Will Waterman and Mat Lainsbury who each have over 15 years’ experience in F1 and who met while working at Red Bull. MV Composites – named after Motorsport Valley, the cluster of motorsport businesses centred on Silverstone – now works with several F1 teams and other motorsport customers.
Mr Waterman said: “Through our work in the industry, we noticed that many composites manufacturers were not geared up to cope with the demands of F1 teams. MV Composites was set up to address this and has the ability to manufacture high-quality precision parts and carry out inspections within a very tight turnround time. We have scaled up quickly to meet demand and have invested in larger premises, additional equipment and staff and have also just started a night shift. This finance will enable us to make the most of the new unit, and provide more working capital so we can continue to grow the team and take on new contracts.”
Quality and precisionFrontier Development Capital’s Raj Minhas added: “MV Composites is building a reputation in F1 circles for quality, precision and just-in-time supply and has the opportunity to become a major player in the industry. Will and Mat have put the right infrastructure in place to build the business but needed the financial resources to support their growth. The funding will ensure they can continue to meet their customers’ needs and maintain the momentum.”
David Tindall, senior investment manager at the
British Business Bank, said: “Since its launch earlier this year, the Midlands Engine Investment Fund II has invested over £17 million in businesses around the Midlands. This latest investment in MV Composites further demonstrates the fund’s commitment to supporting companies that are not only looking to grow but also leading innovation in their industries, bridging critical gaps in the market.”
Paul Stokes of Warwick-based invoice finance specialist
Flex ABL introduced FDC to the company. He said: “MV Composites is such an exciting business to work with. We have seen first-hand how tirelessly Will and Mat have worked to get to this stage and we are proud to have established such a great working relationship with them. Working with FDC also shows the power of collaboration and how the ambitions of rising stars in the region can be supported.”
The £400 million Midlands Engine Investment Fund II covers the entire Midlands region and provides debt finance from £25,000 to £2 million and equity investment up to £5 million to help a range of small- and medium-size businesses to start up, scale up or stay ahead.
The purpose of the Midlands Engine Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the Midlands. The Midlands Engine Investment Fund II increases the supply and diversity of early-stage finance for smaller businesses in the Midlands, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.