Press Releases
ICON secures £10m for Deepstream Technologies Ltd
September 2004
A breakthrough in digital sensor technology is set to revolutionise industries across the world.Launched this month, September 2004, DeepStream Technologies Ltd has developed for the first time cost-effective miniaturised 3D digital sensors. The company is one of the most significant manufacturing start-ups in the UK in recent years. The deeply embedded technology, that can be designed to fit into new or existing devices, replaces less accurate analogue systems. DeepStream's processes mean that sensors can be manufactured from as little as $2 each. DeepStream's founders, who describe their technology as disruptive - because it is market- and even business-changing technology - believe that their product will become synonymous with the likes of Dolby as a household trademark.
The digital sensors will benefit electrical device manufacturers in three key areas - intelligence, upgradability and the advantages of digital technology.
Based in Bangor, North Wales, DeepStream has already secured two contracts within the European electronics industry and has established a concept study with a well-known appliance manufacturer. It recently won its first full contract valued at $5.8m. Once fully operational, the company will employ 120 people at its Bangor site.
The company has achieved £10m in start-up funding. A total of £2.8m has come from DeepStream founders and venture capitalists Doughty Hanson Technology Ventures. A Regional Selective Assistance grant from the Welsh Assembly Government has contributed £1.2m, and additional bank finance will bring the total to £10m over five years. Manufacturers are so excited by the possibilities offered by the cutting-edge sensor technology that their identities are confidential, as products containing DeepStream technology are at least one year away from market.
DeepStream's sensors can be as small as a thumbnail and can process 'real world' measurement data with more accuracy and more flexibility than has been previously possible. Potential internet communication opens up service and e-commerce opportunities for electrical device manufacturers. The technology can be used in domestic appliances, for example. A sensor could make minute adjustments for best energy-efficient settings. Equally, wireless technology would enable service providers to spot potential future problems from a remote location.
Domestic appliance manufacturers could use the technology to provide feature upgrades - activated via wireless communication - and collect usage data. For the first time, appliance manufacturers can promote brand loyalty using these features.
Advantages for customers include feature upgrades and offers of other products or services based on data collected about their usage - similar to supermarket loyalty card schemes. DeepStream's sensors can also provide massive functional improvements for existing products, with the potential to improve safety. PDAs or mobile phones could be used to collect and display data from products. Then those devices can forward this information to specialist service providers or on-site reporting systems.
DeepStream will volume manufacture the finished products in-house as well as design sensor modules to manufacturers' specifications and produce fully working prototypes. Full production will start in early 2005.
The company founders spent 10 months working unpaid to get DeepStream off the ground. Doughty Hanson stepped in during the exhaustive quest to provide the funding. Chief Executive Mark Crosier, 40, was technical manager at the former Delta MEM switchgear plant in Holyhead, Wales, where he headed up the research and development department. Mark said: "This is disruptive technology. It's difficult for companies to get their heads round it and they will either embrace it or fall behind. No one else makes intelligent sensors of this nature and we expect to change the business model for quite a few businesses. "It's invasive technology that will become ubiquitous and in time our brand will be on lots of products."
DeepStream remains one of the few manufacturing start-ups to achieve equity funding through venture capital. Yet in five years' time the company intends to float on the stock exchange.
ICON Corporate Finance, the specialist adviser to technology companies that worked with DeepStream to secure funding, described it as "one of the most significant venture-capital backed manufacturing start-ups in the UK in recent years."
An opening ceremony was conducted by Welsh Assembly Government First Minister Rhodri Morgan on 24 September, 2004.
