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.

Aqdot’s proprietary platform technology and know-how enables valuable active products to be protected, delivered and chemically programmed to release where and when required.  It has the potential to be game-changing in a wide range of industries, including household products such as detergents, fragrances, agrochemicals, composites, pharmaceuticals, oil and gas, food, paint, personal products and cosmetics.

Business Model

The company will monetise its technology through increasingly close relationships with major players in its chosen markets.  Relationships will enrich through the following sequence 

1. Paid Proof of Concept and Joint development collaborations 
2. Licensing agreements
3. Contract manufacturing agreements

Followed by selective direct sales channels if appropriate.

The company has formed a number of industry verticals including AqWash in the detergent field where they have an engagement with one of the leading enzyme suppliers. 

AqFrag is a product line in the fragrance industry where the company has initiated its first proof of concept agreement with a leading company in the area of delivering fragrance and is engaged with others. This can be over time and lead to much less fragrance wastage. The company is also developing products which can capture odours.

In addition the company is developing an epoxy curing technology (AqCure) which can delay or prevent curing reactions. This enables the customer to undertake large projects without the requirement for cooling.  In addition the ability of the technology to slow or prevent the heat reaction typical in curing and the associated health and safety benefits is being explored. 

So far the company has been responding to in bound enquiries and trying to focus on the most promising, based on their strategic evaluation of the market. 

As these verticals develop they allow different sales and charging strategies to be developed for different business areas while keeping the underlying technology complimentary across the business. It will also potentially allow for the company to sell assets in specific industry verticals while maintaining the underlying IP.

Developments since last Funding Round

Since the last funding round the company has made significant progress:

• The pathway towards Regulatory approval on track with all studies completed
• Major progress with industrial processes relating to pathfinder product
• Broadening the product range
• Further IP created
• Target partners engaged
• Low distraction relocation achieved
• Executive team strengthened

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.

Tim Wright, CEO, joined Aqdot as CEO in November 2014. Prior to joining he co-founded Solent Pharma Ltd, a privately held speciality pharmaceutical company and has undertaken consulting projects supporting a variety of businesses as they develop growth and funding strategies. Previously Tim was CEO of IS Pharma plc, which he led through turnaround to become a substantial, profitable speciality business before its successful merger with Sinclair Pharma in 2011. He served as a non-executive director of the enlarged group, Sinclair IS Pharma, until 2012. Tim has previously held senior domestic and international commercial roles with Élan, SmithKline Beecham and Pfizer. Tim has successfully developed, licensed and grown brands and businesses at all stages of their lifecycle. He is a Fellow of the Chartered Institute of Marketing, a Fellow of the Institute of Directors and a Chartered Director.

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.

Dr John Hamlin, NED, serves as independent non-executive director at Aqdot. He was previously part-time CEO from the company’s formation until November 2014. He remains actively involved as an advisor. Before joining Aqdot, John was the CEO at Plaxica, a technology and licensing company focused on the production of platform chemicals and polymers from renewable resources. John also works closely with the Venture Team at Imperial Innovations where he is Entrepreneur in Residence. John brings more than 25 years industrial experience 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.

The Investment case

We believe that Aqdot are developing a potent proprietary platform technology in encapsulation, an area that has very exciting applications in countless major markets. There has been very little innovation in encapsulation for over 40 years. Aqdot’s technology is widely applicable and offers substantial cost savings by increasing the cargo load from around 60-65% or less with current technology to over 90% depending on the application area with Aqdot. In addition it offers significant enhancement to many different processes because it can trigger release of its load under different conditions and take loads to specific targets.

 As a result it is our view that once they have demonstrated this in a few industrial verticals, major chemical companies such as BASF, DOW Lanxess and Henkel will be interested in the platform as they will see their ability to sell down their existing multiple verticals a performance based solution to their customers in which they will be able to share some of the value created.

 In a mature industry with relatively little innovation this is potentially a game changer, which could significantly differentiating a major Chemical company  from their competitors and as such could be extremely valuable.     We therefore believe this funding will allow the company to demonstrate the effectiveness of their technology in at least two high margin verticals which could be enough to stimulate large Chemical companies’ interest in acquiring the technology platform probably from around 2018 onwards. 

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