SME of the Month Sepember - IOTA NanoSolutions Limited

Main activities of the company 
IOTA NanoSolutions Limited is a nanotechnology company specialising in the delivery and formulation of poorly soluble ingredients. IOTA's proprietary platform technologies allow the transformation of insoluble materials into dry solid formats that form nanodispersions on contact with a range of liquids. The nanodispersions enable the enhanced formulation and performance of insoluble materials in various environments and in so doing address many of the issues that restrict the exploitation of insoluble/poorly soluble active ingredients. 
The IOTA NanoSolutions technologies focus primarily on organic molecules and over 200 organic materials across a wide range of chemistries have already successfully been dispersed without the need for chemical modification. Many proof-of-principle developments have been completed on a number of actives including vitamins and provitamins (e.g. vitamin E acetate), biocides including antifungals, antimicrobials, antiparasitics and anti yeasts (e.g. azoles, chlorinated phenols, pyretheroids), nutraceuticals (e.g. coenzyme Q10, phytosterols), OTC and Rx pharmaceuticals (e.g. analgesics, lipid therapeutic agents, antihypertensives, hormones), dyes and UV active ingredients (e.g. fluorescers, inkjet, sunscreens, inks), cosmetics, flavours and food additives, bleaches (e.g. per-acids) and surface modifiers. The technology has value in new material discovery programmes, new chemical efficacy testing, enhancement of existing materials and the extension of market applicability for current commercial chemicals.

Total number of people employed
8 FTE's (including 6 chemists). In addition, Steve Rannard, a Professor at the University of Liverpool Chemistry Department holds an IOTA NanoSolutions Industrial Senior Research Fellowship and Royal Society Industry Fellowship.

Company start date
IOTA NanoSolutions was co-founded by Prof. Steve Rannard, Dr Alison Foster, Dr Dave Duncalf (all formerly of Unilever) and Prof Andy Cooper (University of Liverpool) in June 2005

Although IOTA NanoSolutions Limited was registered as a spin-out company from Unilever, the original technology was developed at the University of Liverpool, Department of Chemistry during an 18 month EPSRC funded programme in 2002. The spin-out originated through the knowledge transfer of the technology through internal Unilever funded projects to the Unilever Ventures funded spin-out in 2005.

History of the Company
Research into the technology was initiated by Professor Andrew Cooper and Dr. Haifei Zhang (Chemistry Department, University of Liverpool) when they embarked on a project funded by the UK's Engineering & Physical Sciences Research Council (EPSRC Grant GR/N3999/01), leading to the formation of intellectual property. The work attracted the attention of Professor Steve Rannard (at the time a Visiting Professor in the Chemistry Department). Professors Rannard and Cooper initiated the knowledge transfer to Unilever where the technology was developed globally across Unilever businesses after the opportunity became the focus of an internal Unilever project, with consultancy and support from Professor Cooper and Dr Zhang.  This led to the formation of a patent portfolio and business model which was presented to Unilever Ventures (Unilever Corporate Venturing) by Professor Rannard, Professor Cooper, Dr Alison Foster and Dr Dave Duncalf for funds to develop a spin-out company. Unilever Ventures recognised that the technologies had substantial commercial prospects beyond their application in Unilever products alone and in 2005, IOTA NanoSolutions Ltd was spun-out of Unilever.  Although majority owned by Unilever Ventures, IOTA NanoSolutions Limited is now operating as an independent business. 

In total, including the significant research investment from the University of Liverpool, Unilever, and  start-up funds from Unilever Ventures, over £2m has been invested in the business to date with further substantial investment for the remainder of 2007. 

Since the spin-out IOTA NanoSolutions has grown to 8 full time employees and currently occupies 3 offices and two purpose-built laboratories in the MerseyBIO incubator, Liverpool.  The company has developed the technology significantly and has recently filed the latest of 13 patents. 

In November 2006, Andrew Elphick (formerly Global Business Director at Oxonica Plc, a world leading nanotechnology company) was appointed as CEO of IOTA NanoSolutions. Andrew has driven the strategic and commercial development of the company which is now actively exploiting its technology and expertise in collaboration with multi-national companies in numerous market sectors including nutraceuticals, agrochemicals, pharmaceuticals, foods, consumer/household products, cosmetics, inks and coatings.  The company is operating a range of revenue generating models that include supplying reformulated materials to corporate partners, toll manufacturing, as well as licensing the processing technology for royalty payments.

In developing a business plan, IOTA NanoSolutions carried out an analysis of market opportunities and selected target sectors where its base technology is likely to find greatest technical and commercial uptake. IOTA NanoSolutions engaged in internal development programmes to generate direct end market opportunities and to act as entrée's to leading supply chain companies (e.g. pharmaceutical and agrochemical majors). On an on-going basis, IOTA NanoSolutions is developing sector specific plans and is marketing itself on a direct business to business basis augmented by attendance at sector specific trade shows and exhibitions.

What the future holds
IOTA NanoSolutions Ltd is a genuine example of how successful collaborative technology and knowledge transfer can be managed from UK Universities through to exploitation via a new start-up. 

IOTA NanoSolutions was recently presented with the Northwest Regional Development Agency's "Science and Technology Business of the Year" award and followed this success by winning the "Merseyside Innovation Awards 2007.

It is expected that IOTA NanoSolutions will seek external 3rd Party Equity funding in the medium term. This investment round will be used to further develop the company, commercialise products and support growth in the key strategic sectors.

As a small company with a novel technology IOTA NanoSolutions faces a series of hurdles to the adoption of the technology by major end users. The company is focusing on building its profile and subsequent credibility of its science and delivery base in order to be seen as a reliable partner to major end customers.

IOTA NanoSolutions aims to achieve success through the development of a sustainable growth model and commercialisation of its technology in a variety of market sectors. It is anticipated that this will lead to a trade sale or AIM listing of the company.