H2 Car maker Riversimple raises £1.5m in latest funding

A mid-Wales hydrogen car manufacturer raised £1.5m in its latest funding round.

The crowdfunding campaign launched by Seedrs is now overfunded and it has achieved advanced approval from HMRC for the Enterprise Investment Scheme giving tax incentives for qualifying investors.

Riversimple secured a £580,000 investment from Angels Invest Wales with a syndicate of Welsh business angels led by lead investor Andrew Diplock. Match funding of £250,000 is coming from the Wales Angel Co-investment Fund which is managed by the Development Bank of Wales.

HRH The Prince of Wales visited the Llandridnod Wells-based Riversimple earlier this month. Prince Charles launched the Sustainable Markets Initiative last year at the World Economic Forum in Davos and Riversimple has been appointed to the Hydrogen taskforce along with some of the world’s largest corporations who wish to decarbonise through the use of hydrogen as an energy vector.

As a leading sustainable vehicle manufacturer, Riversimple will use the funding to build vehicles for customer trials that began earlier this year in Abergavenny. The funds will also enable the company to draw down grants that have already been awarded by the Office of Zero Emission Vehicles for the trials and by Innovate UK for participation in the Milford Haven Energy Kingdom, a green hydrogen energy system which includes heating, power and personal transportation.

Lead investor and entrepreneur Andrew Diplock believes that “the stars are aligning for this forward-thinking company”.

Mr Diplock says that with climate change, Brexit, and a post-pandemic recovery all point to the need for capital to be deployed in sustainable businesses which can have real impact on our society and environment.

Hugo Spowers, the managing director of Riversimple

“They [Riversimple] have a proven technology that can scale globally and so I see Riversimple as a great investment opportunity for this syndicate,” Mr Diplock added.

Hugo Spowers, the founder and managing director of Riversimple said he was delighted add Mr Diplock, all the other syndicate angel investors, and the Development Bank of Wales to the growing list of investors who want to see a shift to a more sustainable and greener economy.

Mr Spowers said: “Wales has been a wonderful place to develop our technology, build our business and refine our service proposition so it is fantastic to have their support as embark on the next stage of our journey.

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Chris Foxall, Riverimple’s finance director, added: “Our strategy is focussed on scaling-up significantly which is why we’ve been working so hard on our plans for manufacturing facilities and developing the relationships with like-minded organizations such as Siemens to help us deliver on our ambition.

“We’ll be providing high-quality jobs in Wales through our R&D centre, production sites and wider supply chain and have appointed Gambit Corporate Finance to lead an institutional raise to fund our long-term business plan. We’re very grateful that the angel syndicate and the Development Bank of Wales recognise the benefits to the Welsh economy that a sustainable SME like Riversimple can bring.”

The Development Bank of Wales is “really excited” about the opportunities for the green economy in Wales, according to Mike Owen, the group investment director. He added that Riversimple prove that efficiency and sustainability can be profitable and does make good business sense.

Source: Business Live – Chris Pyke.

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