Aelius Biotech Secures Additional Funding for US and European Expansion
Deal News | Apr 08, 2025 | Mercia Fund Management (Mercia Ventures)
Aelius Biotech, a Newcastle-based company known for its unique laboratory gut model used in drug and food testing, has secured an additional £750,000 in funding from the North East Venture Fund managed by Mercia Ventures. This fund is supported by the European Regional Development Fund. The financial boost will support Aelius' expansion into the US and European markets and the completion of its new laboratory in Blandford Square, Newcastle. Aelius provides testing services to a range of clients in the consumer health, pharmaceutical, and functional food sectors, including prominent names such as Huel. The company boasts a pioneering gut model that uniquely simulates the full digestion process. Established in 2018 by Dr. Peter Chater, Dr. Matt Wilcox, and Professor Jeff Pearson, Aelius has increased its workforce from five to fifteen and doubled its revenues in 2024. The company aims to further consolidate its market presence globally with this new capital infusion, as stated by CEO Dr. Chater and Mercia Ventures’ Chris McCourt.
Sectors
- Biotechnology
- Pharmaceutical
- Food and Beverage
Geography
- United Kingdom – Aelius Biotech is based in Newcastle, UK, where it is expanding its laboratory and workforce.
- Europe – Aelius is also aiming to enhance its market presence within Europe as part of its growth strategy.
Industry
- Biotechnology – Aelius Biotech operates in the biotechnology sector, developing advanced in vitro testing models for pharmaceuticals and functional foods.
- Pharmaceutical – The company provides testing services for pharmaceutical firms, leveraging its unique gut model to assist in drug development.
- Food and Beverage – Aelius collaborates with companies in the food industry, including those producing alternative proteins and lab-grown meats, to improve product formulations.
Financials
- £750,000 – The additional funding amount raised by Aelius Biotech from the North East Venture Fund.
- £1.25m – Initial funding received by Aelius Biotech from Mercia Ventures and the North East Venture Fund in 2023.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Aelius Biotech | Target Company | Company | A biotech company known for its unique laboratory gut model used in in vitro testing. |
| Mercia Ventures | Investor | Company | A venture fund manager providing funding support for Aelius Biotech's expansion. |
| North East Venture Fund | Investor | Company | A venture fund supporting regional businesses, backed by the European Regional Development Fund. |
| European Regional Development Fund | Funding Support | Government | Provides financial support to regional development initiatives like the North East Venture Fund. |
| Dr. Peter Chater | CEO | Person | Co-founder and CEO of Aelius Biotech. |
| Dr. Matt Wilcox | Co-founder | Person | Co-founder of Aelius Biotech. |
| Professor Jeff Pearson | Co-founder | Person | Co-founder of Aelius Biotech with research background at the University of Newcastle. |
| Chris McCourt | Representative of Investor | Person | Represents Mercia Ventures, commenting on the investment into Aelius Biotech. |