• Swindon & Wiltshire M&A, deals
• Friday October 10 2025

Bristol-based engineering start-up raises £1.3 million to expand

A Bristol-based company looking to apply heat-resistant technology developed for the aerospace industry to mass market applications have raised £1.3 million.

Engineers Dr Danilo Di Salvo and Dr Richard Grainger of High Temperature Material Systems (HTMS) aim to make high-performance materials for mass-market applications like electric battery casings and automotive parts.

HTMS, which has a team of eight, has a laboratory in Bristol and is currently registered in Stratford-upon-Avon.

The investment will enable the company to open a new production facility in the South West and an office in Leamington Spa and continue its research and development.

Following its move to the new and larger premises, it expects to create 40 new jobs over the next four years.

The majority of the £1.3 million investment has come from the British Business Bank’s South West Investment Fund and Midlands Engine Investment Fund II, through their respective fund managers Maven Capital Partners and Mercia Ventures.

It is the first time the two regional funds have collaborated on an investment, with each providing £350,000. Other investors include SFC Capital, DeepTech Labs, the US venture fund Plug and Play and angel investors.

HTMS specialises in Ceramic Matrix Composites (CMCs), which combine the heat-resistant properties of ceramics with fibres for added strength and flexibility. CMCs – which are used on the underside of the Space Shuttle – are more lightweight than metal and can withstand extreme environments, however the huge cost of production means their use has been very limited to date.

Dr Di Salvo and Dr Grainger, who between them have over 20 years’ experience in the composites industry, have found a way to significantly reduce the energy, time and cost involved in producing CMCs.

After developing the process at home, they set up HTMS in 2021 with the aim of bringing CMCs to a wider audience and creating the UK’s first domestic supply chain.

HTMS is already working with leading automotive and battery manufacturers, as well as Cranfield University and other research institutes. As its materials can withstand temperatures of up to 1400°C, the company is currently focusing on their use in exhaust parts, brake shims and electric vehicle battery casings – three of the key thermal challenges facing the automotive industry.

Dr Di Salvo said: “Richard and I saw the potential of advanced thermal composites but were frustrated with the high cost and lack of a UK supply chain. This is a fantastic moment for British manufacturing. We are excited to scale up manufacturing of our world-leading products and look forward to growing our business and championing British innovation.”

Rafi Khan, investment manager at Maven, said; “HTMS has developed a truly differentiated manufacturing process for high-performance ceramic composites, combining technical excellence with commercial insight.

“As industries seek lightweight, heat-resistant materials that are scalable and sustainable, HTMS’s platform is well placed to deliver real impact. We are pleased to support Danilo, Richard and the team as they enter their next stage of growth.”

Shubham Jaipuria, investor at Mercia Ventures, added: “HTMS’s advanced materials open up new possibilities across a range of industries – from safer electric vehicles and more fuel-efficient aircraft to improved energy storage. By enabling the launch of the new laboratory, this investment will also help to create a domestic supply chain for these important new materials.”

Lizzy Upton, senior investment manager at British Business Bank, said: “This investment marks the first collaboration between the South West Investment Fund and the Midlands Engine Investment Fund II, showing the strength of our regional funds working together. By supporting HTMS’s expansion, we are helping to create skilled jobs, strengthen the UK’s supply chain for advanced materials, and support one of the key growth sectors identified in the UK’s modern Industrial Strategy.”

The purpose of the South West Investment Fund is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the South West. It offers a range of commercial finance options with smaller loans from £25,000 to £100,000, debt finance from £100,000 to £2 million, and equity investment up to £5 million.

The Fund is increasing the supply and diversity of early-stage finance for South West smaller businesses, providing funds to firms that might otherwise not receive investment and helping to break down barriers in access to finance.