Northern Gritstone, the investment company focused on science and technology businesses in the North of England and chaired by Lord Jim O’Neill, has announced a combined £3.5m seed round investment into MicroLub, with co-investors LIFTT and NPIF II – Praetura Equity Finance, which is managed by Praetura Ventures as part of the Northern Powerhouse Investment Fund II.
With obesity contributing to a projected global annual health bill of $4.3 trillion, and over half the world’s population on course to be overweight or obese within the next decade, MicroLub is addressing the need for less-calorific alternatives from food and food-ingredients companies. The spinout’s technology adds lubrication to foods without losing mouthfeel through unique ‘scaffolds, ’made of protein and water and coated by polysaccharides, and reducing the need for added fats and oils.
MicroLub aims not only to make foods healthier, but also to contribute to sustainability by supporting the alternative protein industry in making plant-based foods less astringent.
MicroLub already has strong traction with some of the largest food and food ingredients companies and with retail sales of reduced-fat dairy and plant-based food products in Europe, the US and the UK alone worth more than $120 billion, the market opportunity for MicroLub is significant. The investment will allow the company to develop commercial partnerships and expand its team.
Professor Anwesha Sarkar, founder of MicroLub said: “When we discovered the technology and tested lubricity, we knew it had many potential applications, which we can now explore with this investment led by Northern Gritstone.”
David Peters, CEO of MicroLub, added: ‘There is a huge market opportunity in food for MicroLub. We already have strong traction with ingredients giants and some of the largest food and dairy companies, who are looking for innovative ways to make their products healthier, more nutritious and more sustainable. I am very excited at the journey ahead with our customers.”
Duncan Johnson, CEO of Northern Gritstone, added: “Northern Gritstone is delighted to support MicroLub’s world-class team. Obesity is a challenge in many countries reducing the quality of life of an individual and often shortening it. MicroLub shows that innovation coming out of the University of Leeds has the potential to help solve these global challenges.”
The appropriately named Professor Nick Plant, Deputy Vice-Chancellor: Research and Innovation at the University of Leeds, said: “This groundbreaking research is addressing a major global challenge while placing the UK at the forefront of the quest to reduce health inequalities. We are proud of our track record of transforming academic research into commercial success.”
