November 19, 2019 @ 12:56 by Steven Hugill
A North East tech firm is targeting global growth after raising $7.5 million (£5.8 million) investment with support from a worldwide operator.
IOTech Systems says the backing will bolster international expansion plans and accelerate product delivery.
The Newcastle-headquartered company, which builds and deploys open and secure software edge platforms for the Industrial Internet of Things, secured its funding support with help from computing firm Dell.
The investment round was led by Dell Technologies Capital and supported by the North East Innovation Fund, supported by the European Regional Development Fund and managed by Northstar Ventures, SPDG and Scottish Enterprise.
Keith Steele, founder and chief executive of IOTech, said the funding represents a huge boost to the firm’s global growth strategy, revealing it will strengthen the business’ ability to expand channel support and acquisition capability across the US, Europe and Asia-Pacific regions.
He also said it will extend the firm’s professional service offerings, particularly to support customer pilots and subsequent production deployment.
He said: “The latest raise is testament to the hard work of the team at IOTech, who continue to develop ground-breaking technology for our customers.
“Our goal is to help grow the North East’s tech hub and this investment enables us to take a huge step towards doing this.”
IOTech was supported on the transaction by Newcastle-based Gordon Brown Law Firm LLP, which has provided legal advice on all fundraising activity since IOTech was set up including on $2.5 million early stage seed funding last year to accelerate product development and expand its city presence.
“We are delighted to have worked with Anna McGill and Jennifer Boynton at Gordon Brown Law Firm,” added Keith.
“Their sector knowledge and experience with local businesses is second-to-none.”
“IOTech has already built a strong reputation in the North East and the business is a great example of a tech success story for our region,” said corporate partner Anna.
“The substantial investment also reflects the great promise that IOTech holds for so many people in our region and also in Edinburgh thanks to the investment from Scottish Enterprise.
“We are delighted to have worked with Keith on this transaction and look forward to supporting the team at IOTech as they embark on the next stage of their growth journey.”
Stephen Price, investment director at Northstar Ventures, added: “IOTech is a business that we have been watching since formation and we were very pleased to support it back in 2018.
“We are now delighted to further support the growth of the company alongside an impressive investor syndicate.
“IOTech is developing industry leading products that will drive the adoption of Internet of Things solutions at scale.
“We have been extremely impressed with the team, their vision and their level of ambition, which is truly global from the outset.”