Dear

AQDOT is a spin-out from the Department of Chemistry at the University of Cambridge and was founded in late 2012. Its proprietary technology introduces an innovative, simple method for manufacturing structures in the millimetre and nanometre range that are useful for encapsulating valuable cargos. The novelty of the technology was described by the founders in a publication in Science which can be read here.

AQDOT’s technology provides the following core benefits in comparison to encapsulation solutions currently on the market:

• All production takes place at room temperature in aqueous solutions, with mild conditions allowing for the encapsulation of the broadest range of cargoes.
• The cargo loading takes place in the same step as the capsule or particle formation, simplifying the manufacturing process.
• The payload per capsule or particle is significantly higher than current solutions (95% versus 50%), considerably reducing the cost of non-cargo materials.
• A wide range of release triggers are available, each offering potential sensitivities superior to the current state of the art, without compromising microcapsule stability.
• The functionality of the encapsulation material can readily be customised based on a customer’s specific cargo and release requirements.

Business Plan 

AQDOT have researched a number of large Industries where it is felt their technology could yield significant cost savings as well as enhanced performance. These include the detergent industry, food, agrochemicals, nutraceuticals, cosmetics and pharmaceutical industries.

The company has a number of different potential revenue streams which could include:

1. Joint development 
2. Process technology licensing
3. Contract manufacturing

AQDOT’s preferred model is to license technology packages that allow formulators in different Industries to add value to their products. Under such licensing agreements, each licensor has defined proprietary rights over the technology in a specific manner, at a specific time in a specific region. Licensing also helps to create impact in a customer industry for the company, and is a route to early revenue, which may allow AQDOT to more quickly develop its technology and perhaps fund the building of a small-scale manufacturing plant.

Amongst the many potential markets and applications, the most accessible ones where short-term revenues can be generated while representing large long‐term opportunities are laundry detergent in the household care market. The global household care market is more than US$ 108bn with more than 5% compound annual growth rate, where laundry detergents is the biggest sub-market with a global size of nearly US$ 60bn. An industrial trend is to achieve more energy and water savings during washing cycles, which has led to the significant increase in the use of enzymes with 95% of laundry detergents containing enzymes. 

Opportunity

AQDOT aims to enter the market by partnering with branded manufacturing leaders. The company has already built relationships, and held highly positive preliminary discussions with a number of market leaders across a range of industries. The company will then aim to work with leading companies jointly developing full-scale production, and will seek to win multiple technology licenses.  

AQDOT’s proprietary technology is currently protected by five patent families. One patent has been granted in Europe and the U.S., while the others are entering the national phases. Product registration is underway in both the U.S. and Europe. 

Management / Team

Dr Peter Fields, Chairman,  has a PhD in Chemical Engineering from the University of Cambridge and spent 15 years with ICI plc working in a variety of senior management roles in the areas of research and development, biological products, petrochemicals and chemical distribution. In 1999, Peter led the management buy-out of Chance and Hunt, subsequently merging with Azelis SA to form a leading European specialty chemical distributor with a turnover in excess of €1 billion. Having left Azelis in 2009, Peter has worked as a Chairman/ entrepreneur /investor in a number of start-up companies in the chemicals and consumer sectors.

Dr John Hamlin, CEO and Director, joined Aqdot from being the Entrepreneur in Residence of Imperial Innovations. John previously the CEO and then non-exectutive director for Plaxica, a technology and licensing company focused on the production of biopolymers from renewable resources. John worked for more than 25 years at BP holding several senior international business and technology positions. Most of his career has been in the chemicals and polymers sector and he brings an experience of the main value chain operators, manufacturing technologies and the various markets for speciality and high volume plastics.

Dr Roger Coulston, Co-founder, Company Secretary and CSO, started his career as a dairy technologist with 5-years of waste management experience in a global food manufacturer. He then obtained a Bachelor of Medical Science and PhD in supramolecular chemistry from the Australian National University (ANU), and has been gaining post doctoral experience in the field at the University of Cambridge. 

Dr Jing Zhang, Co-Founder and Director of Operations, obtained a Bachelor of Philosophy with a University medal at ANU, and a PhD in microfluidic droplet-based microcapsules from the University of Cambridge.

Valuations as of 10th September 2014. Net NAV includes income tax relief and fees on investment

Parkwalk’s current portfolio consists of 29 companies, which have raised in excess of £250m of funding between them since 2010 and over 600 patents protect their technology and processes.
Overall, Funds I-IV’s portfolio comprises of 9% Series ‘A’, 33% Series ‘B’, 25% Pre-IPO and 33% AIM listed.  

Past performance is no guide to future performance. The price of a fund can fall as well as rise. Investors may receive back less than originally invested.

We are currently closing several investments for the Parkwalk UK Tech Fund V, Opportunities, the University of Cambridge Enterprise Fund II and the University of Oxford Isis Fund I.
The evergreen Opportunities EIS Fund is open to new investors.
The University of Cambridge Enterprise Fund III is about to close to new investors.
The University of Oxford Isis Fund II is expected to launch later this year.
Please contact funds@parkwalkadvisors.com or reply to this email if you would like further details on any of these funds.